Women Mean Business

The second issue of Flourish, by Women Mean Business has been launched. Check out Debra’s article on page 11 where she discusses the importance of protecting your greatest assets.

Click to read all the fab articles:http://hendersonprinting.com/digitaleditions/wmbnovdec2014/files/10.html

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A Small to Medium-Sized Business should not perceive itself as “small”. It’s a business. Its employees want access to the same thinking, resources, and tools as large businesses. This includes access to competitive or market wages, comprehensive benefit packages and flexible options as part of their total compensation package.

What is your total compensation package?  Salary is usually the main component but benefits such as health benefits (eg. dental, vision, hospital coverage), pension plans, group RRSPs, disability insurance, health club memberships/reimbursement, paid vacation, and paid sick days are all part of your total compensation package.  And you can bet your employees are becoming increasingly interested in the non-monetary benefits their employer can offer. They decide what is valuable to them when considering joining (or leaving) a particular employer. While extensive (and expensive) benefit packages used to be relegated to large businesses, it’s becoming increasingly affordable, and necessary, for small and medium-sized businesses to offer competitive total compensation packages in order to attract, compete for, and retain high caliber staff.

As an employer, why is this significant?  Firstly, attracting and retaining top talent is a key issue for business owners and operators.  When one considers the “real cost” of losing a valuable employee (cost of hiring, orienting & training new staff, lost productivity and lost engagement), employers are forced to be strategic and creative in keeping their employees happy, productive and engaged at work.  With small business in particular a high turnover rate can be increasingly detrimental when one or two employees constitute 10-30% of their workforce.  In terms of recruitment, in the increasingly competitive and demographically diverse job market, particularly like that of Kingston, business owners are required to consider options other than just salary in order to attract the top talent needed to generate success.

Secondly, while benefits do come at a cost to employers, today’s options for small and medium-sized business benefit packages are increasingly diverse, flexible, and affordable.  Employers are able to customize their benefit packages to align with their employees’ wants and the company mandate while keeping the budget in check.  When working with the right benefits company, you also can collectively work to ensure that you are getting the best value for your benefit dollar, and that your plan is the best value for your business.

And thirdly, peace of mind (and coverage) for both you and your employees and the link to your bottom line.  Studies show that when employees feel their broader benefit needs are being met they are more satisfied, and thus more productive.  Also, the capacity to offer certain forms of health benefits can also directly impact the health and well-being of employees (eg. Access to prescription medication or physiotherapy) potentially leads to decreased sick time and lost productivity.  In short, the benefits of benefits have the capacity to outweigh their cost in the long run. Overall, with the right benefit package, an employer can leverage the opportunity cost of providing benefits to their employees as one benchmark against the potential of decreased turnover, and increased satisfaction and productivity.

Your people are your greatest asset. And employers who give strong consideration and attention to the things that matter to their employees have greater capacity to foster the productivity and commitment necessary to drive organizational success.

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