Many businesses build their relationships with their employees with the same urgency as they do to build their relationships with their customers. They accomplish this by managing fairly, providing meaningful assignments, and compensating well. Another effective strategy is that they take advantage of the existing company relationship with their business banking partner, and use it to provide additional benefits for their employees. Here are some things to consider for a company who decides to implement this strategy.
The Benefits of Happy Employees
Some managers feel that they can get the best out of their employees by running their departments like a Ben Hur galley. However, there are several good reasons to manage with honey instead of vinegar. Happy employees generally correlate with low turnover. This means the company spends less money finding and training new employees. Certainly, a disgruntled employee is the wrong person to operate the customer service desk. However, even employees that never interface with customers perform more efficiently when they are happy. On a cost-analysis basis, employees add more to the bottom line when they operate through loyalty instead of fear. This has been confirmed by several studies, recently by Kansas State University in 2009. The study estimates that companies lose roughly $75 per week for each unhappy employee. Interestingly, the gap between happy employees and harangued employees is most evident during a crisis. Happy employees keep their heads better and are more motivated to solve problems quickly and competently. Here are several ways to help employees through your business banking partner.
Offer Direct Deposit
Electronic paychecks are an excellent way to make your employees lives easier. A survey by the Consumer Federation of America determined that three out of four employees would prefer direct deposit, when given the choice. In turn, it also saves the company time and money preparing the payroll. The Electronic Payments Association (NACHA) estimates that companies can save as much as $3.15 for each payment by using direct deposit.
Provide a College Savings Plan
Many families consider college expenses to be their main financial concern. Companies generate significant employee goodwill by setting up a payroll contribution program. A 529 plan allows tax-free contributions. When children reach college age, money can be extracted from the account tax-free as well, for qualified expenses.
Offer a Solid Retirement Plan
Attractive retirement plans used to be the bailiwick of the largest corporations. Now, smaller companies can compete with equally attractive plans, and gain great benefits by doing so. Employees appreciate their company helping them deal with their future. There are several types of plans available. Each has one thing in common, that employee contributions are made before tax is assessed. If a company matches funds, these expenses are deductible, as are the setup costs associated with setting up the retirement fund.
Many companies still separate family from work. This allows a company to differentiate itself by considering their employee's family concerns. One of the best ways to do this is by providing day care. Families, particularly with both parents working, get a major benefit by getting help with their children. Companies benefit by reduced lateness and absenteeism.
Business banking allows many benefits to companies. One of the most important of these is the services that can benefit their employees. To strengthen employee relationships, managers can work with their banks to help their employees with their financial concerns