Do you provide benefits for your staff? If not, it’s really important to consider doing this. I know that for a long time I was scared to offer benefits because I was afraid that it was going to cost me a lot of money to provide healthcare, retirement, and more to my staff. However, when I was having a conversation with my insurance agent, as I was setting up disability insurance, he told me that the way to attract and retain great talent is by providing benefits. It’s something that’s extremely important and it truly costs a lot less than you might think.
Health insurance usually ends up costing about $400 per person. If you think about it, that is not a lot of money. It’s a small investment that goes a really long way for your staff. Not to mention if you’re a business owner, you’re probably earning a lot more than they are, and it’s probably going to be more cost prohibitive for them to get medical care. So this is a really powerful incentive that does not cost that much to you, and it is just another thing that you can write off in your taxes. I’m not a tax expert, but it’s always something to consider.
I felt like I was reading all this literature, I wanted to inform myself but I felt really overwhelmed. So, it kept me from pulling the trigger for a really long time on setting up insurance benefits and retirement benefits, until we finally figured out that we just wanted to keep it simple. So we got a SIMPLE IRA because some of the other programs were too hard to figure out, so we said, “Let’s just take the easy route.”
Setting up SIMPLE IRA was incredibly easy, and it’s a really, really small amount of money. You would match up to 3% of your team’s contributions. So, let’s say you have someone who is making $30,000 a year, the maximum that you would contribute in one year is $900, which is a really small amount. That’s the entire year, and that’s only if that person puts in 3%. So if the person puts in 3% that’s the most that you will ever match them, if they put in 1% you only have to match 1%. But if you do the math, $900 over the course of a year is $75 a month, and if you divide that by two it’s $37.50 per pay period.
This, again, is something that is really powerful. This is going to help your team be able to invest in their future, it is going to help them have retirement savings. Maybe your staff is like mine, they’re very young and maybe they’re not thinking about that yet, but the truth is that we should help guide them and set them up for a good future. We know that maybe Social Security benefits won’t be there one day so instead, we can offer this great benefit to them. It’s simple and it comes at a much lower cost than you would think.
The same goes for having a firm disability policy. It is very cheap, and you can have a short term disability policy in place that will cover your staff in case of whatever emergency may come up, or possibly even if someone on your team gets pregnant. There’s lots of different things that you can do to help protect your team, and to help build them up, because if you want to be the best business person that you can be, and if you want to be the best at your craft, you want to have the best possible people to help you.
I know that I feel incredibly fortunate to have the team that I have, and it has taken time to find this team. It gives me so much pride to be able to say that I provide benefits for them. And truly, the main reason why I didn’t do it sooner is that I was afraid, and I was uninformed. So, that’s why I want to talk to you about this today, and I wanted to give you just a little bit of information so you can ask the right questions. Give your insurance agent a call and get a disability policy for your firm. While you’re at it you should get a disability policy for yourself, just because it’s good to have.
From there, just figure out. Call someone like Merrill Lynch, or wherever else you want, and just say, “Hey, I want to set up a SIMPLE IRA for my business.” Boom! It’s not that hard to do all of these things, it’s not that hard to take the steps, it seems scarier than it is. So, there are two people that you can call today to get benefits set up.
Another easy way to get benefits set up is through your payroll system. We use Gusto, they are so great with payroll, and we were able to set up PTO that is accrued based on the number of hours worked. This was super simple to set up through that system. Having a great payroll system can make a huge difference and ease the stress of setting up things like PTO and benefits.
We also have other small benefits. For example, one of our staff that’s been with us for many years gets additional vacation time, and we do vacation reimbursement up to $1000 to encourage her to take the time off to be with her family, because that’s something that we know will bring her back enthusiastic, supercharged up, and ready to get down to work providing great results for our clients.
I challenge you, I encourage you to take the first steps towards getting benefits for your team. I promise you, it’s not as expensive as you would think, and it’s much easier to set up with a little bit of guidance. I hope that this serves you so you can start getting benefits for your staff right away.