to some of you, this is a beginners question
we are at the point now, where , with a few “employees” I hear
I need more money ( thanks to gas hitting 267 a gallon and other things)
and from others I hear
I need benefits
so what would you prefer, if it was you, mind you right now you have no benefits other then paid vacation
would you rather have another $2 an hour, or a baisc insurance plan
+++++++++++++++++++++++++++++++++++++
so the guys said, show me the money
however, I said, if we go this route, you can not use the lack of benefits against me
to that there was a……………………….ah……..ok
++++++++++++++++++++++++++++++++++++++++++
last let me ad, that in our little podunk area of the world, I am one of the better paying contractors
so as an “employee” or as an “emplyer” what do you think ????????
Replies
keep this in mind..... benefits are what has every major city in the country all but broke.... benefits are what will bring down GM and most other US auto makers and airlines...
there is no end to the costs that go with benefits you will never be the good guy because your costs will continue to rise while what you offer will continue to go down... You won't be able to explain this to anyones satisfaction and no one will be happy...
pay your people well give out a bonus.... even buy a FL beach condo and let your guys use it... so they can afford to take their kids to the beach... these costs you can control and end... insurance is very hard to stop once you start....
let us know how you're thinking
p
"however, I said, if we go this route, you can not use the lack of benefits against me"
and there in lies the rub.
as an employee ... with wife with good bennies ... I'd say money.
as an owner ... I'd offer the bennies. Bet U attract good employees thru out the future with that. Cash bonuses can always be tied to production.
I don't have employees, and plan to never have employees ... but if I did ... it'd be all or nothing. Just me ... or employees, like a "real company" ... and real company benefits.
My all or nothing mindset is one more reason I don't have employees!
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
For the most part I'd take the cash, but health insurance strikes me as one of the benefits that can kill a young family low on cash flow. The rates are absurd. An employer who is able to get people into a "group" whereby everyone in it gains some sort of discount I see as a win. You pay less than they would have, they're covered. And you are helping yourself by helping to keep the workforce healthy.
In all fairness, that perception might be mine alone. I am reasonably sure that without the VA, since nobody else will touch me, I'd pretty much be pushing daisys today.
In the event that like Jeff, they have insurance via the spouse, you can always option them the cash. And I think (which means confirm with your accountant) that theres some things you can item out on a paycheck that are "tagged" for a specific use and don't get taxed as much or at all. That ones a little foggy. I'm sure, if I'm wrong, we'll know in about an hour.
"Sometimes when I consider what tremendous consequences come from little things, I am tempted to think -- there are no little things" - Bruce Barton
Money or insurance... it depends on whether my wife can get the insurance for me from her job. My last real employer offered me medical insurance thru Kaiser, but I already had it thru my wife, and I asked if I could have the equivalent money instead. They said no, it's insurance or nothing. That kinda irked me, but that's the way it was.
My first and only employee will hit 6 months fairly soon, and the question will be, do you want the insurance or do you want what the insurance would cost me as added pay. At least I think that's what the question will be. Maybe someone here can tell me why it might not be so smart.
For the short term - give them all a raise. They will be happier and can then market themselves to other contractor for even higher wages. Everyone they go to will be told to beat your $, and some will.
For the long term - no options, they get health care. This helps maintain a healthy and less stressed work force- especially when they know their kids are getting whatever medical attention the require.
It also helps keeping YOU more competetive. For a competitor to offer the same package he/ she needs to enroll all their employees in a HMO program. Not gonna get done just to steal a tradesperson from you.
Less emplyee turn over = more production and higher quality production. It's win/ win!
Frankie
There he goes—one of God's own prototypes—a high powered mutant of some kind never even considered for mass production. Too weird to live and too rare to die.
—Hunter S. Thompson
from Fear And Loathing In Las Vegas
My gut says that a benifits package shows that you focus on having employees that see family as a priority. Insurance didn't mean much to me before I got married.
Now that I am married and have kids, I'm well aware of my insurance package. I'm also very aware of what my insurance won't cover. My HR department used to hear about these. Do yo want these headaches?
as an employee I like the benefits I have a matching 401k, health, gas/phone checks etc.
What I've observed from others, the cash in hand is more important.
I think it really boils down to the individual, their place in life, and how they manage their own fiances
Most small construction crews have situations like you describe CAGIV. Some want the bennies, some want the cash.
CAFE plans allow the guys to pick and choose. The accountants can easily set one up.
Once the plan is set up, the new employees hire on knowing that they will have to make a choice when their probation period ends. Either way, the employer's costs remain basically the same.
blue
I think (in general) long term employees want benifits, and short term employees want cash.
Someone with a 401K has more to lose when they walk away from a job. Someone that has a salary and no benifits - He has a lot less to lose.
A couple of things
Medical and retirement I do not offer
at this time, for us to get into a group plan would mean that everyone would have to be in it, to have enough to qualify
One guy, who actually wants more, ( another thread) has 4 kids, and his wife does not have insurance at her work either, hes th eone who is pushing for something better in his life
Another 1 kid, no wife, wants the money , and is not worried about insurance as the state has plans that he fits into, ( only covers major medical, and barely at that
, Another, mid 20's , wild and single, show me the money
of course this question would all be a lot easier for me, if we had socialized medicine
retirement, I dont offer anything
vacation time, they already get that,, after they are with me 1 year, they get 2 days, after 2 years, get 1 week paid. and that 1 week continues, so that its a week a year. They, can, at their choice, use it as sick pay
holidays that fall on a work day ( thanksgiving, christmas, news years, 4th of july). With x, mas and new years, they can opt for the day before or after, if either of those fall on a weekend)
so I guess, from what I see in responces I should offer medical, some kind, now the tirck is to find something thta is affordable ( ok dont laugh)
Might try your local HBA. Ours has a medical plan. I think a group is 2. So that might work. Kaiser now has smaller plans for individuals and small groups at pretty good rates. $225/mo for a single. x 3 for Family rate. You can probably work on that with the higher co pay and/or lesser benefits (ie no Rx)
Good broker can find all of these deals.
"at this time, for us to get into a group plan would mean that everyone would have to be in it, to have enough to qualify"
You sure about that?
years back ... when my wife was laid off... I supplied out health care.
I just joined a local chamber of commerce.
I call all the local chambers .. and all the local builder associations ... and all their 800 numbers seemed to end at the same girls voice mail.
So .. I asked her .. who has the best coverage ... and what's the lowest buy in?
I was all set to join a builders group ... but a local chamber gave the same insurance options ... and they had a lower "yearly due" ...
I know ... at that time ... if I had employees ... my discounted rate would have been offered to them.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
I provide health care for only one worker and his family. You can get coverage in any format you want. It may cost you a little more to do it in an unconventional manner but it is available. He pays 200 and I pay 200. He has a family of 5 and one of the kids is DH so he takes some special meds that drive the cost up some. DanT
It is my impression that hardly any employers offer true retirement any more. 401K - yes - retirement - no. I'd mark retirement off the list.
I look at health insurance as essential. The company I work for offers it, but I'm on my wife's plan because it is better. No refund for me though.
Term life insurance can be pretty cheap.
I agree with what Boss Hog says: stable, potentially long term employees will look for benefits. Basically an "employee compensation package", not just an hourly wage.
This time of year the folks that want a higher wage rather than bennies might reconsider when they realize what they can be compensated with pre tax.