Culver Careers Build a winning team. Thu, 10 Sep 2020 17:53:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.3 /wp-content/uploads/2016/03/cropped-favicon-1-32x32.png Culver Careers 32 32 Employee Benefits Packages /blog/employee-benefits-packages/ Thu, 10 Sep 2020 17:53:24 +0000 /?p=2308 Deciding how to structure your employee benefits package is challenging. You want to create incentives and motivate your workers by giving them the best compensation package, but you also don’t want to get in over your head. What goes into structuring an employee benefits package? How do you select your workers’ insurance policy? How much […]

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Deciding how to structure your employee benefits package is challenging. You want to create incentives and motivate your workers by giving them the best compensation package, but you also don’t want to get in over your head.

What goes into structuring an employee benefits package? How do you select your workers’ insurance policy? How much sick leave are you supposed to give your employees? Should you include a corporate gym membership?

These are all understandable questions if you’re an executive trying to navigate the human resources labyrinth. But you need proven answers, and with over a quarter of employees leaving their current job, or turning down job offers because of employee benefits, you need them fast.

Stop guessing what to give your employees and be confident in the benefits package you offer. At CulverServices, we give you the right advice for structuring your employee benefits.

PTO, Sick Days, and Vacation Days

Paid time off (PTO) policies combine vacation, sick time, and personal days into a single category of days employees can use at their choosing.

More and more, workers want work-life balance. They want to be able to enjoy the compensation they receive from their company. Project: Time Off research showed that employees who worked at companies who encouraged time off (68%) were happier than those who worked at companies who were either ambivalent or discouraging towards PTO.

USTravel.org also found the number one reason for travel in the US was avoiding burnout. When you take these numbers into account, it’s easy to see how small businesses that offer extensive PTO packages have an advantage over small businesses that are stingy about employees taking time off.

Don’t worry about a generous PTO benefits package hindering productivity. The key findings of a TravelEffect study show that workers need time off to regenerate their focus. The study also shows that, contrary to many US companies’ beliefs, larger PTO benefits packages increase productivity.

PTO promotes employees’ mental health and creates a workplace culture ripe for candidate recruitment and retention. Employees see a company that doesn’t care about their employees’ mental health as cold and insensitive to people’s needs.

The best and brightest don’t want to be chained to a desk; they want to be able to use their salary on things they enjoy.

But calculating the optimal PTO for a company can be difficult. You don’t want to shell out so much paid time and sick leave that no one can cover the required labor, and finding the right balance can be difficult. While it varies by industry, the national average is 10 PTO days per year for workers who have been with you for under 1 year, plus holidays. If you offer 11-15 days per year, you’ll position yourself as a place that employees want to work at. PTO should also increase with each year that an employee has been with you.

It’s also important to make sure that employees are available during your busiest times. For example, a company that does most of its work in a particular season might have mostly part-time workers and a few full-time staffers. While there will likely be work for the full-time staffers in the offseason, it may be wise to place restrictions on when employees can use their paid vacation.

Health Insurance and Wellness Benefits

As the political debate rages over federally-run health care, employees everywhere still need health insurance. And if you own a business, it’s in your best interest to consider offering some sort of supplemental health insurance. According to a 2018 Aflac survey, 72% of the surveyed workers enrolled in supplemental insurance programs reported being happy or extremely happy compared to only 50% of the workers not enrolled in a supplemental insurance program.

There is a key benefit for employers providing their employees with more than minimal insurance benefits besides job satisfaction: it keeps employees coming to work.

Preventative Health Care

Data from the Rand Report also suggests companies almost always save by implementing a supplemental wellness program for their employees.

Overall, preventative health care solutions wind up saving money for employers on health insurance premiums. The CDC estimates that employers lose $1638 per year per employee due to absenteeism caused by health issues.

Preventative health care solutions can actually help reduce costs while improving your employees’ wellness. At CulverServices, we help companies to craft a Proactive Health Management Plan (PHMP). This preventative health care solution incentivizes employees to perform a small health-related task each month, such as having a phone call with a nurse. These incentives encourage employees to take more care of their health, reducing premiums and medical costs down the line. PHMP leads to an average 11-17% decrease in overall health care spend after two years in the program.

Because CulverServices’ PHMP program takes advantage of the tax code, it’s free to employers and gives employees more money each payday. With PHMP, the average increase in employee take-凯发app官网登录home pay is between 2-5%.

Life Insurance

Offering life insurance is not a standard component of an employee benefits package. The first decision when choosing whether to provide life insurance in your company is whom to cover.

If you can limit your costs by finding lower rates, you might want to offer life insurance to all of your full-time employees. But offering life insurance as part of an employee benefits package is usually an exclusive benefit.

Only offering life insurance to a select few employees prohibits you from deducting the premiums for federal tax purposes unless you meet the nondiscrimination requirements.

To meet the nondiscrimination requirements, you have to prove you aren’t only giving benefits to your business’s highest compensated employees. You also have to confirm that your life insurance benefits package doesn’t exclude lower compensation employees from participating due to the price.

Life insurance employee benefits are not considered discriminatory if they meet the following requirements:

  • The insurance plan benefits at least 70% of all employees
  • You do not consider at least 85 percent of covered employees to be critical employees
  • The life insurance plan covers employees whom the IRS classifies as nondiscriminatory

Group-term life insurance is the most common type of life insurance offered in employee benefits packages. This type of life insurance includes small sub-groups, and covers employees based on the following distinctions:

  • Job duties
  • Compensation
  • Length of service
  • Marital status
  • Participation in pension, profit-sharing, stock bonus, or accident and health plan
  • Other employment-related factors

Dental Insurance

You may see dental insurance as a nonessential part of your business’s benefits package. But before you write off dental insurance as excessive, consider that you can find plans with less than $1 costs per day for each of your employees.

Flexible coverages fit most budgets, and you can opt for a plan from basic to comprehensive. Dental insurance plans can also be voluntary, which requires your employee to pay for part of their premium.

In addition to voluntary premiums, if you own a small business, you may receive tax credits if you pay 50% or more of the dental insurance costs, and have fewer than 25 employees. 

The perks to including dental insurance in your benefits package:

  • Much like health coverage, dental insurance keeps your employees from missing work due to severe complications. Annually, workers miss more than 92 million hours of work due to unplanned dental visits.
  • Providing dental insurance for your employees places you at the top of the pecking order as far as employee benefits are concerned. A LIMRA study showed that 78% of all job seekers thought dental coverage was an essential benefit.

Vision Insurance

Vision insurance is very similar to dental insurance because employers don’t have to provide it by law. Only 23% of American employers offer vision insurance while 61% of the American population requires vision assistance.

With an increasing number of occupations being computer-based, vision is a critical component to overall employee health and productivity. Vision insurance also provides early identification of chronic diseases that frequently go unnoticed. A recent Population Health Management study found that routine eye exams identify high cholesterol 65% of the time and diabetes 20% of the time.

Retirement Benefits

Employer-sponsored retirement plans are an essential part of any employee benefits package. They provide security for the employee and can persuade recruits to join a business.

There are two main employer-sponsored retirement plans: defined benefit plans, and defined contribution plans. A defined benefit plan gives employees monthly benefits once they retire. The monthly amount can be fixed or variable depending on how the plan factors in components such as salary and tenure.

These types of plans are also known as pension plans. With pensions, the employer shoulders the risk, but has more control and can provide more incentive for potential candidates.

A defined-contribution plan like a 401k plan does not guarantee specific payments upon retirement. With defined contribution plans, either the employer or the employee decides what to contribute to the individual’s account. For example, an employee sets aside 5% of his/her annual salary to a defined contribution plan.

An example of a defined-contribution plan is CulverServices’ EBS program, which consists of deferred compensation plans and stock option plans for your most valuable employees.

Companies can also implement deferred compensation programs that withhold a portion of the employee’s income until a designated date, usually retirement. Deferred compensation plans are useful for companies who want to give their employees incentives to stay at the company.

Disability Insurance

The Consumer Federation commissioned a study examining employees’ understanding of disability insurance. The study found that 65% thought their employers offered disability insurance. But the Bureau of Labor Statistics found that only 32% of the workforce had access to disability coverage through their employers. 

The stats reflect the need for employers to be transparent with their employees about disability and workers’ compensation. Despite the surveyed employees’ lack of knowledge regarding disability and workers’ compensation, 88 percent of them still believed it was a valuable benefit for employers to offer.

Some of the issues with the job candidates’ lack of knowledge stem from not clearly separating disability from workers’ compensation. Whereas workers’ compensation only covers employees in the event they are injured at work, disability covers employees no matter where they experience their injury. It is also challenging to qualify for workers’ compensation and Social Security Disability Insurance (SSDI).

The difference between short-term disability and long-term disability is that long-term disability covers the employee for a longer duration and cuts down on costs. Short-term disability provides complimentary coverage, but it doesn’t fully compensate workers who can’t work for long durations.

Crafting Your Employee Benefits Package

As a small business owner, CEO, or human resources manager, it’s essential to understand what constitutes the best benefits package. Companies everywhere are competing for top talent.

Those who understand how to motivate and care for their employees will always land the most skilled employees. If you’re wondering how to climb a step above your competition, check out what CulverServices has to offer in terms of helping you choose employee benefits.

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The Importance of Employee Benefits /blog/importance-employee-benefits/ Fri, 28 Aug 2020 16:58:30 +0000 /?p=2298 Business is about more than dollars and cents; it’s about taking care of people and showing them your company cares. According to Forbes, 96% of all employees believe showing empathy is an easy way to improve retention.  How can an employer show empathy to its employees? The easiest way is to take their wants and […]

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Business is about more than dollars and cents; it’s about taking care of people and showing them your company cares. According to Forbes, 96% of all employees believe showing empathy is an easy way to improve retention. 

How can an employer show empathy to its employees? The easiest way is to take their wants and needs seriously with competitive benefits packages.

A 2016 Aflac survey found that 60% of employers believe having a benefits package is extremely important to employee loyalty. When employees see generous benefits, they are more likely to work for you longer and harder. It may seem simple, but in business, it’s often the simplest of matters that get overlooked.

What Can Employee Benefits Provide For Your Business?

Offering your employees great benefits packages helps your business in four key areas.

  • Attracting talent
  • Fostering loyalty
  • Creating a healthy work environment 
  • Boosting motivation/engagement/productivity

Attracting Talent

A 2018 MetLife study showed that just 67% of the surveyed employees were happy with their current benefits. That means a third of the workforce is unhappy with their employer’s benefits package.

Think about how many high-level employees you could attract with an extensive benefits program. The more top talent you can recruit, the more your business succeeds.

Fostering Loyal Employees

Loyal employees don’t fall out of the sky; you have to work for them. One of the most effective ways to work for your employees’ loyalty is by providing better benefits.

The same Aflac study referenced in the introduction showed that 36% of the surveyed employees thought improving their benefits package was an excellent way to keep them in their job. 

How does that affect a business’s bottom line? As the creator of the Net-Promoter system Frank Reichheld points out, “companies can’t earn their customers’ loyalty until they earn their employees’ loyalty.”

Frank’s wisdom isn’t hearsay. The Medallia Institute compared employee engagement across 130 retail stores. The companies with more loyal and engaged employees (measured by the likelihood the employee would recommend their place of work) had customer loyalty ratings 12 percent higher than stores with less loyal and committed employees.

On top of those numbers, stores with higher employee engagement increased their customer loyalty year-over-year, while the stores with lower employee engagement saw a consistent drop.

Successful businesses run on loyal employees from the top down. Having dependable benefits creates a robust management structure that understands how to keep talent.

Creating a Healthy Work Environment

Research shows that employees who are satisfied with their work environment are 16% more productive, 18% more likely to stay, and 30% more attracted to their current employers over their competitors.

Keeping your employees healthy can also improve your bottom line. If workers don’t have access to healthcare and can’t take personal days, they are more likely to experience dissatisfaction at work. CulverServices offers a Proactive Health Management Plan (PHMP) that uses preventative health care to improve employees’ wellness while saving you money.

Boosting Motivation, Engagement, and Productivity

Imagine you hire the best talent in your region. You’re excited about the opportunity, and things are going great when your newly hired employee has a death in the family. Suddenly, their performance starts to dwindle, and it hurts your business. What do you do?

The NCBI found that 58% of the Netherlands’ work-related disabilities and 30% of the UK’s sickness absences were due to mental health issues. Having health and wellness programs with mental health components cuts down on work absences, reduces disability expenses, and as a result, increases productivity.

Implementing a wellness program also promotes teamwork and camaraderie. Employees who feel like they a valued part of a team are more motivated in the workplace.

Providing the Right Employee Benefits

Choosing which benefits to provide your employees is difficult given the current generational disparity between workers.

But in the wake of COVID, employers will have to adapt their packages even more than usual. For example, CulverServices, PHMPs keep employees’ healthcare costs down with education and incentives, such as reading an article about fitness or having a phone call with a nurse.

These incentives encourage employees to take better care of their health, reducing premiums and medical costs down the line. PHMP leads to an average 11-17% decrease in overall healthcare spending after years in the program.

Because the program takes advantage of the tax code, it’s free to employers and gives

employees more money each payday. If you’re looking to adapt your health insurance plan to the COVID climate while improving your bottom line, then a proactive health management plan can reduce your costs while improving outcomes.

The other desirable employee benefits program to consider is a Deferred compensation/retention package. These benefits are usually a part of retirement packages.

With deferred compensation packages, the employee defers a portion of their wages and receives it later. Examples of these plans include pensions, retirement funds, and employee stock options.

Offering deferred compensation benefits shows candidates that you take care of your employees after they stop working. Retirement is everyone’s dream. Working for a business that takes care of that dream motivates people.

Benefits Help Both Employee and Employer

Every successful employer has a symbiotic relationship with its employees. Even if a business has the hottest product on the market, if they don’t treat their employees well, they won’t succeed.

Offering enticing employee benefits packages ensures that your company attracts the best talent in the industry. In this way, you can view employee benefits as a marketing tactic.

Don’t fall behind your competition by neglecting employee benefits. At Culver, we help your team to hire and retain talent. Ask about our employee retention services today to build a stronger business moving forward!

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Guide to Small Business Employee Benefits /blog/small-business-employee-benefits/ Tue, 25 Aug 2020 21:55:10 +0000 /?p=2278 Running a small business is about efficiency. You determine your company’s success by making subtle changes that have a substantial financial impact. One of the most important changes C-level executives can make to their company structure is modifying their employee benefits package to fit job candidates’ needs. When it comes to your businesses’ employee benefits, […]

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Running a small business is about efficiency. You determine your company’s success by making subtle changes that have a substantial financial impact. One of the most important changes C-level executives can make to their company structure is modifying their employee benefits package to fit job candidates’ needs.

When it comes to your American Institute of CPA survey found that 80% of the surveyed candidates said they would keep a job that offered better benefits rather than more salary.

The following guide teaches small business owners and executives everything you need to know about employee benefits packages. Use it to shape your employee benefits policy to attract and retain top talent, understand the required taxes and financial impact, and determine premiums.

Required Employee Benefits for Small Businesses

Excellent employee benefits are a staple of any successful business. But understanding what makes a great employee benefits package isn’t knowledge you’re born possessing. With that in mind, let’s start with which benefits a business owner must provide.

Workers’ Compensation

If your small business has more than five employees, you’re required by federal law to provide workers’ compensation. Workers’ compensation is an insurance policy that protects the employer and the employee when an employee gets injured on the job.

Workers’ compensation covers medical expenses, lost wages, and rehabilitation expenses when employees fall ill or get injured. It’s advisable to pay for workers’ compensation because if you don’t have it, and one of your employees is hurt, you’ll have to pay out of pocket to cover the costs.

It is wise for any small business to check their states’ workers’ compensation laws. Failure to understand state workers’ compensation laws could result in significant fines for small businesses.

Each state structures the particulars of workers’ compensation insurance, such as your monthly premium and deductible. Some states structure the coverage based on individual occurrences, while others require employers to provide compensation year-round.

The National Federation of Independent Business lists the regulations for workers’ compensation on a state-by-state basis.

Unemployment Insurance

The Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA) require employers to pay taxes to fund unemployment costs.

If a company lays off an employee for reasons outside of their control, the terminated employee will most likely be eligible for unemployment benefits. However, if an employee committed a serious offense, they will probably not qualify for benefits.

The SUTA requires contributions from both employers and employees. State unemployment tax rates vary along with their taxable wage base. A state’s taxable wage base describes the amount of their chargeable income. 

Some states also have a sliding scale of state unemployment tax rates. In these states, employers receive assessments, with which they must comply. The state updates these assessments periodically based on market fluctuations and other factors, such as the business’s industry. These rates fluctuate more for some industries because specific industries have higher turnover rates than others.  

It is always wise to check your state’s SUTA because states can change them annually. You can find each state’s SUTA requirements by visiting the state’s government website through the IRS website.

Disability Insurance

Like workers’ compensation, whether or not your business must provide disability insurance depends on the state. California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island for example, all require their companies to offer disability insurance.

Disability insurance covers employees who become decapacitated due to a non-work incident. There are two types of disability insurance, short-term and long-term. These policies are run by private organizations and give employees income for either a short or extended time.

What disability plans cover depends on the private organization, but share many similarities. For short-term disability plans, the median coverage length is 26 weeks. According to the Bureau of Labor Statistics, these numbers have remained steady over the past twenty years. Their numbers also show limited fluctuation from industry to industry.

The Bureau of Labor Statistics numbers also show that typical short-term plans have a 60% salary replacement rate, which has remained steady over the past twenty years. 75% of the people covered by a short-term disability plan have a maximum benefit amount. The median amount for this maximum payout plan was $584 as of 2014.

Much like short-term plans, long-term plans usually provide a fixed percentage of the employee’s annual earnings. In the study, 95% of those covered by a long-term plan had policies that included a fixed rate of their yearly earnings. The median amount for this fixed rate was 60 percent of the employee’s annual salary.

88% of long-term disability plans had a maximum amount payable, and the median maximum payout from the study in 2015 was $8,000.

The 2015 study shows the potential upside of offering disability insurance. Since 1999, there has been a marked increase in small businesses that provide long-term and short-term disability benefits. That said, at that time 51% of the workforce was still without disability benefits.

With both short-term and long-term disability insurance, there are stipulations. Aside from the maximum amount payable, most long-term policies also require employees to have at least one year’s tenure before gaining eligibility. For most policies there is also a one year time limit for employees to apply.

But despite the qualifying factors, disability insurance can be a very useful employee benefit. Because workers’ compensation claims can incur staggering expenses to companies, many have turned their eyes to using accident and disability benefits to curb the costs of workers’ comp.

An Aflac study found that 42% of the companies that offered voluntary disability insurance saw declines in workers’ compensation claims.

If you’re concerned about disability insurance costs, in most states, you can opt for a plan that utilizes both employer and employee contributions. The average cost for employers to offer disability plans was $0.06 per hour for short-term disability and $0.05 for long-term disability plans.

Health Insurance

The Affordable Care Act stipulates that businesses with more than 50 employees must offer health insurance. If you, as a business owner, don’t want to provide health insurance, you’ll have to pay a fee for each employee.

But don’t let the Affordable Care Act make you feel constricted as a business owner, there are several different types of health insurance plans to choose from.

Traditional Health Insurance Plans

As the name suggests, traditional health insurance plans are the go-to among employers. These plans usually have higher premiums, but you can enjoy a large selection of doctors.

Managed Care Plans

Managed care health insurance plans have lower premiums but have a smaller doctors’ circle.

Most small businesses use group coverage health insurance. Group health insurance plans cover eligible employees. Private insurance companies often give the company a few options to present their employees, and the employee chooses the plan that fits them best.

Small business owners with 1-50 employers may be eligible to purchase a group health insurance plan through the Small Business Health Options Program of healthcare.org, a government-run health insurance agency.

Small businesses often choose High Deductible Health Plans (HDHPs) because employees chip in more for the costs before the insurance agency pays.

But a great alternative to HDHPs is Health Savings Accounts (HSAs). These plans give employers the benefits of tax-deductible contributions. Once the employee enrolls in the HSA, the employer deposits a fixed amount of money into the employee’s account. HSAs result in lower premiums, and no further tax burdens to the employee. 

Preferred Provider Organization

Preferred Provider Organizations (PPOs) encourage employees to use a designated network of doctors and health professionals. The selected providers give healthcare to businesses at a negotiated or discounted rate.

Employees may or may not be required to choose a primary care physician, but they will have to go out of pocket if they go to a physician or healthcare service outside their provider network.

With a PPO, employees have to pay an annual deductible before their insurance covers their medical bills. This process is also known as “disaster” coverage and refers to insurance companies providing for the employee in the event of severe health care costs.

Employees may also have a copayment for specific services. In these cases, employees are responsible for a percentage of their medical expenses.

PPOs are ideal benefits for small business owners who understand their employees prefer a plan with lower premiums and some degree of choice among providers.

Health Maintenance Organization (HMO)

On average, HMOs give employees lower premiums and less flexibility. HMOs always require employees to choose a primary care physician. To see specialists with an HMO, employees have to get a referral from their primary care physician.

Although HMOs require referrals from an employee’s primary care physician, they usually cover a more extensive range of preventative services. Just like PPOs, HMOs don’t allow employees to seek assistance outside their network. 

Typically, HMOs require a copayment and may also have a deductible before their coverage kicks in.

HMOs are desirable benefits for companies that want plans with comprehensive preventative services such as checkups and immunizations.

COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is essentially a continuation of the Affordable Care Act for employees. COBRA gives ex-employees the right to choose whether they want to remain under their former employers’ employee benefits programs.

COBRA only goes into effect for specific circumstances such as a death in the family, divorce, reduced hours, and transitioning between jobs. However, employees may or may not be eligible for COBRA benefits regardless of whether they voluntarily or involuntarily terminated their employment. COBRA covers these ex-employees with extended health insurance for 18 months.

Most small businesses are exempt from COBRA if they have fewer than 20 employees, but it’s always wise to double-check. Some states have created smaller-scale versions of COBRA to provide for employees with less than twenty employees.

COBRA coverage can last 18-36 months. As the employer, your most important task is to make sure employees understand opportunities to continue their health insurance.

Vision Insurance

Vision insurance is crucial for employers looking to reduce their health insurance costs. The HCMS Group found that companies with vision insurance saved $5.8 billion on healthcare.

Vision insurance saves money on healthcare costs because of its preventative qualities.

Optometrists can spot early signs for many potentially hazardous health conditions such as cardiovascular disease, leukemia, and brain tumors.

The sooner doctors identify these conditions, the sooner employees can start treatment, and the more employers and employees can mitigate the costs from health insurance.

Dental Insurance

A recent National Association of Dental Plans study showed that in 2016, the number of Americans who had dental insurance was on the rise at 77%. That number was an 11% increase from 2015. Of the 77% insured in 2016, 90% got dental insurance from their employer. The report cites Medicare as a leading cause for the increase.

These numbers show that it’s increasingly important for companies to offer dental benefits.

Dental insurance costs vary based on how many employees companies have, the type of coverage they provide, and their location. Employers can contribute to lower the employees’ expenses and encourage them to enroll in the benefits program.

“100-80-50” Dental PPOs

These types of dental plans are the most common. The “100” refers to the policy covering up to 100 percent of cleaning and regular preventative care fees. The “80” refers to the costs for essential restorative services such as fillings and other procedures. The “50” refers to any dental work the employee needs that requires significant reconstruction or a complex surgery.

Employers don’t need to offer dental and vision insurance, but offering dental and vision does show potential candidates that your company cares about their well-being. It also improves small businesses’ bottom line. According to a Centers for Disease Control Study, companies lose 8 billion dollars of productivity per year due to vision impairment issues. Companies can reduce those costs by offering vision insurance.

Family and Medical Leave

The Family and Medical Leave Act requires employers to give employees up to 12 weeks of unpaid, job-protected leave. While these employees are on family and medical leave, the employer must maintain group health insurance benefits.

The Family and Medical Leave Act does not pertain to every employee. The employee has to have at least one year’s tenure (doesn’t have to be consecutive) and have worked 1,250 hours within those twelve months.

Family and Medical leave benefits apply to employees who:

  • Had a new child (birth, adoption, or foster care placement)
  • Need to care for a family’s member health condition

Optional Employee Benefits

Now that we have covered mandatory employee benefits, it’s time to shift focus to benefits companies aren’t required to provide.

Retirement Plans

Employers must pay taxes toward Social Security and 401ks. But not all employers have to give their employees pensions. Providing employee pensions is an easy way to remain a cut above your competition in terms of talent acquisition.

If offering a pension isn’t an option, you can still find ways to outbid your competition. Contribution plans also put you a step above other companies when it comes to retirement benefits.

There are also IRA funds to consider when deciding which retirement plan best suits your small business.

When deciding on what retirement plan benefits you want to offer your employees, consider the following:

  • If you wish to match your employee contributions
  • The designated amount for employees to contribute to the plan
  • The tax implications of your proposed plan

Defined Benefit Pension Plans

Defined benefit pension plans (traditional retirement plans) used to be the most common type of employer-sponsored retirement plan. But since the 1980s the number of employers who offer defined benefit pension packages has steadily decreased.

Defined benefit pension plans designate a set amount of compensation for employees after they retire. With these plans, employees don’t have to make contributions. The supplier provides all the inputs and bases your monthly retirement benefits on your salary and tenure. This means that employees have little control over where their retirement investments go.

401ks

Today, 401k plans are the most common plan in the workforce. Large, for-profit businesses usually offer these plans, and employers’ input to these plans fluctuate.

401ks are considered a derivative of defined contribution plans, and employees control the majority of the contributions. The employee can decide which investments he/she wants and has complete control over their money after reaching retirement age.

The employees’ contributions are also tax-deductible within the year. Investment earnings accrue based on tax-deferral. After retirement, the money the employee receives will be taxable income. While the employee contributes, however, they are exempt.

If the employee withdraws their funds before retirement, they can roll their funds into a traditional IRA fund without incurring taxes or early withdrawal penalties. But if the employee withdraws funds from their 401k and does not turn them into a regular IRA account, they are subject to a 10% early withdrawal penalty.

In 2020, employees can contribute up to $19,500 per year.

PTO

Some companies have unlimited PTO, and others continue to move toward giving their employees up to four weeks out of the year for PTO. But what are the benefits to each?

The pros and cons of unlimited PTO benefits come from (pro) employees’ increased productivity from rest and rejuvenation, and (con) when employees take advantage of the benefits.

The United States is the only country of the 37 comprising the Organization for Economic Co-operation and Development that does not mandate PTO benefits. This puts American C-level executives in a unique position of control when it comes to PTO.

Project: Time Off’s 2018 survey found that employees regarded PTO as the second most important employee benefit. But what may surprise you is the previous year, the same study found that workers forfeited 206 million vacation days.

What those numbers reveal is that companies should structure their PTO based on what fits their workers’ needs. It also shows employers must be communicative about their employees’ PTO benefits.

Preventative Health Care

Preventative health care solutions are an optional employee benefit that can actually help reduce health insurance costs while improving your employees’ wellness. At CulverServices, we help companies to craft a Proactive Health Management Plan (PHMP). This preventative health care solution incentivizes employees to perform a small health-related task each month, such as having a phone call with a nurse. These incentives encourage employees to take more care of their health, reducing premiums and medical costs down the line. PHMP leads to an average 11-17% decrease in overall health care spend after two years in the program.

Because CulverServices’ PHMP program takes advantage of the tax code, it’s free to employers and gives employees more money each payday. With PHMP, the average increase in employee take-凯发app官网登录home pay is between 2-5%.

Benefits Can Make the Difference

In today’s business world, candidates choose employers who provide them with the most security rather than the highest salary. It doesn’t matter whether you’re a small business or a giant corporation, the companies who take their employees’ health and well-being into account are the most successful.

When it comes to employee benefits, workers’ compensation, unemployment insurance, health insurance, and disability insurance are mandated. But choosing the correct optional benefits is what places you in a class of your own. With benefits such as PTO, dental and vision, and strong retirement benefits, you’ll enjoy a world-class reputation no matter your size. Discover how you can take your business to the next level with employee benefits by checking out what CulverServices has to offer.

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Average Cost of Employee Benefits In the US /blog/average-cost-employee-benefits/ Fri, 21 Aug 2020 00:41:42 +0000 /?p=2274 As an employer, you want to provide your team with top-of-the-line employee benefits. But at what point does the cost of providing those benefits outweigh the upside?  In a 2018 US Bureau of Labor Statistics study, the average annual cost of employee benefits per employee was $21,726. Added to the average workers’ salary of $50,000, […]

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As an employer, you want to provide your team with top-of-the-line employee benefits. But at what point does the cost of providing those benefits outweigh the upside? 

In a 2018 US Bureau of Labor Statistics study, the average annual cost of employee benefits per employee was $21,726. Added to the average workers’ salary of $50,000, that’s a total cost of $71,726 per employee.

But figuring out the cost of your employee benefits largely depends on the perks your company offers and whether your company adjusts its benefits based on employee compensation rates.

Read on to learn about the average cost of employee benefits in the US in more detail.

US Bureau of Labor Statistics Study Broken Down

When you break the March 2018 BLS study down, you’ll find that the average price of labor per hour is $36.63, $11.60 of which comes in the form of benefits. $2.63 of the $11.60 is for insurance, and when compounded, the average annual cost of health insurance per employee is $5,698. 

From these numbers, it’s easy to calculate an estimate for the average employee’s costs. By taking each employee’s base salary and multiplying it by 1.25 or 1.4 (depending on the comprehensiveness of the package you offer), you can ballpark the employee’s labor cost.

Health Insurance Cost

The numbers from the Bureau of Labor Statistics serve as a rough guideline, but other factors also influence your employees’ health insurance cost.

These factors include:

  • The insurance carrier
  • The type of plan you choose (ex: PPO, HMO, etc.)
  • The network of providers
  • Your location
  • Your contribution strategy
  • The demographics of your employees (your “employee census”)

When a company provides health insurance to its employees, the business usually opts for a group plan that covers everyone, known as “employer-sponsored health insurance.”

The NCSL notes that this coverage has been on the rise for the past three years. In 2017, the average annual cost for family health insurance was $18,764. That number rose by 5% in 2018 to $19,616.

It’s worth noting the overall trajectory of cost increases, which is something to consider when budgeting your employees’ compensation and salary. When building your employee benefits packages, looking at trends and potential expenses is crucial to make sure you’re not misreading your numbers.

Reimbursement Programs

An easy way to avoid the hassle of group health insurance programs is by offering a reimbursement program for employees. Providing group plans can be challenging, and insurance companies can be a pain. But Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) allow employers to offer non-taxed reimbursement for some healthcare expenses.

The advantage of a reimbursement plan is that you give your employees more control of their coverage while cutting your expenses. Moreover, you do so while improving their well-being and wellness.

Life Insurance

Much like health insurance, life insurance can be more complicated if you plan on going for a group plan. The employer has to make sure they comply with all nondiscrimination requirements to be tax deductible. For example, the group plan you choose must apply to at least 70% of your employees.

There are, however, a few ways to work around the nondiscrimination limits to your group plan. You can offer benefits to small subsects of employees if you base them on the following categories:

  • Marital status
  • Job duties
  • Compensation
  • Length of service
  • Participation in a pension, profit-sharing, stock bonus, or accident and health plan
  • Other employment-related factors

Group life insurance policies typically come in set amounts, such as $50,000. Employers and employees usually have to co-pay the premium. For example, if the premium is $200 per month, the employer might pay half of the premium while the employee pays the other half.

Unemployment Insurance

The payroll taxes a company pays to the government fund unemployment insurance. Each state has its own unemployment rules and regulations. If your company has locations in multiple states, it is wise to familiarize yourself so you can gain a full picture of your total cost.

The Federal Unemployment Tax Act and the State Unemployment Tax Act comprise the majority of unemployment taxes companies have to pay. Employers pay the majority of the State Unemployment Tax, but some states require employees to pay a portion.

Social Security

Both workers and employees cover the cost of Social Security:

  • Workers pay 6.2 % of their earnings up to a capped salary at $127,000.
  • Employers pay the same percentage of the employee’s earnings toward Social Security.
  • The combined employer-employee contribution to Social Security is 12.4%.
  • Contractors have to pay the full 12.4% on their own.

The Cost of Your Employees’ Benefits

Optimizing your employee benefits to attract and retain talent without breaking the bank is an essential function for any business. Knowing the average cost of these benefits can help you balance lower costs while still providing the benefits that will boost employee retention and keep key employees with you for longer in their careers.

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8 Most Desirable Employee Benefits /blog/list-employee-benefits/ Wed, 12 Aug 2020 16:45:54 +0000 /?p=2271 Choosing which employee benefits fit your company is an important decision for all C-level executives and HR staffers. Healthy, loyal, engaged employees bring both large and small companies success. How can your company create healthy, loyal, engaged employees? By offering benefits that satisfy their needs and wants.  Employee turnover can cost a company hundreds of […]

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Choosing which employee benefits fit your company is an important decision for all C-level executives and HR staffers. Healthy, loyal, engaged employees bring both large and small companies success. How can your company create healthy, loyal, engaged employees? By offering benefits that satisfy their needs and wants. 

Employee turnover can cost a company As Patriot Software’s 2019 study of over 700 industry experts suggests, offering nontraditional benefits on top of standard benefits is one of the key components to talent retention.

Catering to your employees’ desires and priorities determines how successful you are at employee engagement and retention. More than ever, crafting the right benefits and perks package is imperative for company success.

Employees’ Most Desired Benefits

According to the Association of International Certified Public Accountants (AICPA), which surveyed 2,026 adults in the US about which benefits they most valued, employees heavily value health insurance, a 401(k) match, and paid time off.

Total WorkforceMillennialsGen XBaby Boomers
Health Insurance56%47%63%67%
401(k) Match56%48%54%71%
Paid Time Off33%37%33%24%
Flexible Work Hours21%26%15%15%
Working Remotely15%17%16%12%
Student Loan Forgiveness15%19%13%6%
Additional Skills Training14%19%13%6%
Tuition Reimbusement11%12%14%6%

As the chart shows, Millennials, the largest generation in the workforce, care more about PTO and flexible work hours than older generations. Trends such as this are essential to note because attracting talent often comes down to which non-traditional benefits companies offer, rather than standard benefits. For example, a 2016 ICIMS study showed that 92% of full-time employees believed non-traditional benefits such as dental/vision insurance and PTO were leading decision factors for top-tier talent.

That doesn’t mean you should put all of your funds into nontraditional benefits. Standard benefits are the most important across all generations. But because they are common, how well you supplement them with nontraditional benefits can influence top talent’s decisions.

What Benefits Do Employees Care About?

Retirement has always been important to employees, but since companies have moved away from pensions, it has become even more desired. Another reason for employees wanting retirement packages is increased life expectancy. People are living longer than ever, and consequently, less prepared for a longer retirement. 

Longer life spans also affect the demand for health insurance plans. With longer lifespans comes increased healthcare costs, and employees need their employers to help with those costs.  Added to increased costs is the increased complexity of the American healthcare system. Health insurance isn’t a one-size-fits-all deal. As Humphrey Taylor and Ian Morrison point out:

“United States insurance coverage, for those who have it, may be provided by Medicare Parts A, B, C, and D, 50 different state Medicaid programs (or MediCal in California), Medicare Advantage, Medigap plans, the Children’s Health Insurance Plan, the Women, Infants and Children Program, the Veterans Administration, the Federal Employees Health Benefits Program, the military, the hundreds of thousands of employer-provided plans and their insurance companies, or by the individual insurance market.  This insurance may be paid for by the federal or state governments, employers, labor unions, or individuals.  Some employers’ plans cover retirees; others do not. The result is that the system is pluralistic, mysterious, capricious, and impossible for most patients and providers to understand.”

The quote shows how bureaucratic and confusing health insurance can be. Often, employees don’t know where to turn for guidance. Having an employer who can simplify the process is a key perk.

Health Insurance

Health insurance is a broad category that includes traditional healthcare, dental insurance, and vision insurance. It’s no surprise that companies and candidates place such a high premium on it.

From the candidate’s perspective, a comprehensive health insurance program is more valuable than a moderate increase in salary. What good is a salary increase if you have to spend it on medical bills?

From your perspective as an employer, it’s in your best interest to keep your employees healthy. Healthy employees are more productive day-to-day and also less likely to miss time due to health issues.

Health insurance doesn’t only matter to baby boomers, members of Generation X, and Generation Y members. Millennials and Generation Z workers tend to be healthier and have lower premiums. However, health insurance can still cost them hundreds of dollars per month if they buy insurance on the open market.

Health insurance is an expensive benefit, but creative solutions can help reduce costs while improving your employees’ overall wellness. At CulverServices, we help companies to craft a Proactive Health Management Plan (PHMP). This preventative healthcare solution incentivizes employees to perform a small health-related task each month, like reading an article about fitness or having a phone call with a nurse. These incentives encourage employees to take more care of their health, reducing premiums and medical costs down the line. PHMP leads to an average 11-17% decrease in overall healthcare spend after two years in the program.

Because the program takes advantage of the tax code, it’s free to employers and gives employees more money each payday. If you want to offer insurance but are concerned about the bottom line, then a proactive health management plan can reduce your costs while improving outcomes.

Life Insurance

Most of the reason that we work is for financial security. Uncertain income gaps and compiling bills can lead to mental and physical health problems such as chronic stress or depression. If you have a family, that stress compounds.  In case of an emergency, it helps to know that your family will be financially safe.

Since life insurance is not a standard benefit, candidates may actively seek companies who provide life insurance options.

Vision Insurance

Under the Affordable Care Act, employers don’t have to include vision insurance. But it is a great way to move ahead of your competition and improve employee retention. With blue light from computers hurting employees’ eyes, vision insurance is more sought after by candidates than ever. Vision insurance can help prevent age-related macular degeneration (AMD) and cataracts.

Long Term Disability Insurance

 Julie Stich, associate vice president of content at the International Foundation of Employee Benefits Plans (IFEBP) says, “Disability benefits aren’t on most employees’ radars. But the reality is, one in four employees will need disability in their career.”

The average long-term disability absence is 34.6 months. That means, without long-term disability insurance, an employee would miss almost three full years of salary. That’s incredibly challenging if the employee is single, let alone if they have a family to support.

Offering long-term disability insurance shows employees that you’re prepared to stand behind them in a worst-case scenario. You know how unexpected obstacles arise in business and life, and you have systems in place to help them overcome those obstacles.

Retirement and Deferred Compensation Plans

Retirement plans and health insurance are generally the most crucial benefits for your company to offer. The reason for this is that they provide your employees with the most security in their position. If you can give an employee a deferred compensation plan or pension, you instantly put yourself in an elite class of employers.

Deferred compensation plans help companies’ retention rates and reduce turnover. If employees know they have benefits to look forward to in the future, they will likely remain loyal to the provider of those benefits.

Employees prefer working for companies that provide them with a retirement plan rather than having to plan it themselves.

PTO (Paid Time Off)

Gone are the days when candidates were happy to accept limited vacation days. With increased globalization and increased access to international travel, younger candidates find paid vacation benefits to be one of the most critical aspects of an employer’s benefits package.

Couples also find paid parental leave to be an essential job perk. Because many households need both parents to provide for a family, Americans need more time at 凯发app官网登录home for newborns. Daycare centers are also a smart perk for employers to consider.

Again, the average candidate desires a company that cares about their family’s well-being. When you put resources in place for candidates’ families, you place yourself a notch above your competition.

Employers’ Most Desired Benefits

The 2018 AICPA study also surveyed employers to see which benefits they thought were most significant to offer their employees.

  • Health Insurance: 95%
  • Leave benefits: 50%
  • Flexible working benefits: 29%
  • Professional development benefits: 17%
  • Wellness benefits: 11%
  • Financial benefits: 6%
  • Family-friendly benefits: 3%

The percentages show that employers had roughly the same order of benefits as employees. But why are these benefits the most important to employers and employees alike?

One answer is that employers have a strong incentive to care about what their employees care about. If you as an employer prioritize different benefits from what your employees want and need, you’re at risk of losing top talent.

Become the Most Sought After by Taking Care of Your Employees

Providing benefits and perks is a core component of keeping workers happy in their jobs. A high salary is important to candidates, but what good is a high salary if they can’t enjoy the money they make? Benefits like health insurance give employees more take-凯发app官网登录home pay, and paid time off offers employees more chances to enjoy their lives.

Loyalty is a two-way street, and when companies offer candidates the most desirable benefits, they immediately build trust. If you’d like to build an employee benefits package that helps engage and retain top talent, we can help.

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CulverCareers Wins ClearlyRated’s 2020 Best of Staffing Client Diamond Award For Service Excellence /blog/culvercareers-wins-clearlyrateds-2020-best-of-staffing-client-diamond-award-for-service-excellence/ Mon, 10 Feb 2020 17:37:13 +0000 /?p=2115 Diamond Award winners have won the Best of Staffing Award for at least 5 years in a row, consistently earning industry-leading satisfaction scores from their clients. At CulverCareers, we’re thrilled and honored to announce that we have won ClearlyRated’s Best of Staffing Client Diamond Award for providing superior service to our clients for at least […]

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Diamond Award winners have won the Best of Staffing Award for at least 5 years in a row, consistently earning industry-leading satisfaction scores from their clients.

At CulverCareers, we’re thrilled and honored to announce that we have won ClearlyRated’s Best of Staffing Client Diamond Award for providing superior service to our clients for at least five (5) consecutive years.

About the Award

Presented in partnership with presenting sponsor, CareerBuilder, and gold sponsors Indeed and Glassdoor, ClearlyRated’s Best of Staffing® Award winners have proven to be industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of winning agencies are 3.3 times more likely to be completely satisfied with the services provided compared to those working with non-winning agencies. Winners who earned the Diamond Award distinction have won the Best of Staffing Award for at least 5 years in a row, consistently earning industry-leading satisfaction scores from their clients.

  • CulverCareers received satisfaction scores of 9 or 10 out of 10 from 94.4% of our clients, significantly higher than the industry’s average of 24%.
  • CulverCareers received a Net Promoter® Score of 94.4% based on our clients’ responses, significantly higher than the industry’s average of -2% in 2019.
  • CulverCareers received ratings from 46.2% of our clients, giving a comprehensive view into the high quality service we provide across the company.

Our candidates also seem to love us!

  • CulverCareers received satisfaction scores of 9 or 10 out of 10 from 91.4% of our placed job candidates, significantly higher than the industry’s average of 45%.
  • CulverCareers received a Net Promoter® Score of 91.4% based on our candidates’ responses, more than 3 times the industry’s average of 24% in 2019 .
  • CulverCareers received ratings from 44.3% of our candidates, giving a comprehensive view into the high quality service we provide across the company.

“We are honored that our clients and candidates continue to regard us as a powerful, trusted, and valued recruiting partner.   We continue to believe that hard work; honest, transparent, open communication; and extreme diligence trumps all else when it comes to talent acquisition.  For the eighth year running we are rated in the Top 1 % of recruiting firms in the U.S.” CulverCareers’ President and CEO, Tim Culver, said.

“Now more than ever, it is important for staffing firms to deliver consistently remarkable experiences to the clients and talent they work with,” said ClearlyRated’s CEO Eric Gregg. “This year’s Best of Staffing winners have shown their commitment to exceptional service, committing to not only measuring satisfaction, but taking action on the feedback. I couldn’t be more proud to showcase these industry leaders alongside feedback from their actual clients and candidates on ClearlyRated.com and applaud them for their commitment to making improvements at their respective firms!”

About CulverCareers

Whether you’re a professional looking to maximize your income or an organization that needs top performers to drive revenue, CulverCareers gives you the power you need to succeed. We’ve spent more than 30 years honing our craft, building our networks and establishing a reputation as the place to go for recruitment.

About ClearlyRated

Rooted in satisfaction research for professional service firms, ClearlyRated utilizes a Net Promoter Score survey program to help professional service firms measure their service experience, build online reputation, and differentiate on service quality. Learn more at https://www.clearlyrated.com/solutions/.

About Best of Staffing

ClearlyRated’s Best of Staffing® Award is the only award in the U.S. and Canada that recognizes staffing agencies that have proven superior service quality based entirely on ratings provided by their clients and job candidates. Award winners are showcased by city and area of expertise on ClearlyRated.com – an online business directory that helps buyers of professional services find service leaders and vet prospective firms – based exclusively on validated client and talent ratings and testimonials.

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Numbers Mean Something /blog/numbers-mean-something/ Thu, 12 Dec 2019 21:26:09 +0000 /?p=2077 And we’re pretty proud of some of our recent numbers. At CulverCareers, we’re one of the highest rated recruiting firms in North America according to Clearly Rated. Which means we’re one of the highest rated recruiting firms in the United States too. What exactly does that mean? Let’s break it down. There are about 16,000 […]

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And we’re pretty proud of some of our recent numbers.

At CulverCareers, we’re one of the highest rated recruiting firms in North America according to Clearly Rated. Which means we’re one of the highest rated recruiting firms in the United States too.

What exactly does that mean?

Let’s break it down.

There are about 16,000 staffing firms in the United States.

There are about 24,000 staffing firms in North America.

How much is 16,000?

It is 44 years’ worth of single days.

It is the number of miles you’d put on your car if you drove from San Diego to New York, then back to San Diego, then back to New York, and then to Washington D.C.

It’s a lot.

How much is 24,000?

It is 65 years’ worth of single days.

It is the number of miles you’d put on your car if you drove from San Diego to New York, then back to San Diego, then back to New York, and then all the way to St. Louis.

It’s a lot.

Here’s what this means for us (and for you, too!)

We are one of the highest rated staffing firms in the United States, and also one of the highest rated in North America.  

Not kidding.  

In the U.S. you would have to use a different staffing firm every day for 44 years straight to find one as highly rated as we are.

Let’s put it another way, just for fun.

Imagine you discover us in San Diego, and you want to find another staffing firm as highly rated as CulverCareers. You decide to get in your car and go for a drive. Every mile you drive, you get on the phone and call another staffing agency.

How far would you have to drive to find a staffing agency as highly rated as CulverCareers? From San Diego…to New York…back to San Diego…back to New York…and then down to Washington D.C. Calling a new agency every. single. mile.

Why are we so highly rated?

First, we go to ridiculous lengths to find you the right talent

The best talent usually already has a job, which is why we target ‘passive’ candidates. We can target very, very specific pools of talent.

Add that to our huge database of active candidates, and you know we’re delivering you the best of the best.

Second, we can trim down your time to hire

You need a top-tier team who can start yesterday. We get it. You’ll see first referrals in 5-10 days. We reduce your average time to hire by 83.3%.

Third, our recruiters have a knack for finding the perfect talent for your team

We think in a past life they may have been treasure hunters. That’s why our retention rate over 6 months is 97.7%. When we pair you with a candidate, we’re confident you’ll both be thrilled but thankful.

Fourth, our recruiters specialize in niche markets

That specialization lets our team provide expertly targeted searches. Whether you’re in ecommerce or social media advertising or you build auto parts, we know your industry like natives.

We’re not creepy, but we know a thing or two about your world.

Fifth, we bring more than 40 years of experience to the table

No cobwebs included – we’re just as fresh now as we were when we started.

Honestly, how many reasons do you need?

If you’re looking to hire top talent, skip the time-intensive search and just go with the multi-award-winning recruiting agency. Your boss will thank you.

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How to Recruit New College Graduates /blog/how-to-recruit-new-college-graduates/ Tue, 19 Nov 2019 23:23:50 +0000 /?p=2039 It’s a smart business decision to hire sharp new college graduates for entry-level positions in your organization. They’re tech-savvy, highly motivated and have a hunger to learn new skills and expand their horizons. But how does a company go about hiring college graduates? And with so many businesses competing for these new college grads, how […]

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It’s a smart business decision to hire sharp new college graduates for entry-level positions in your organization. They’re tech-savvy, highly motivated and have a hunger to learn new skills and expand their horizons. But how does a company go about hiring college graduates? And with so many businesses competing for these new college grads, how does your company stand out from the others in terms of career opportunities? 

How Do You Attract College Graduates to Your Company?

The first step is to create interest in your company among new graduates. To be successful, an organization must find and engage them, and must offer career opportunities that are attractive to these highly desirable candidates. 

What it takes to attract recent graduates:

  • Strong Marketing – Build your employer brand online. Savvy companies must engage graduates where they hang out — on social media sites. Establish a social media presence on sites like YouTube, Instagram, Snapchat, LinkedIn and Twitter. Post regular updates and video campaigns that are aimed at college students as well as recent grads. In addition to job listings, show your company culture. This can include photos of employees, company events and employee (and CEO) posts written from their perspective.
  • Valuable Training – Companies that offer ongoing training to their employees entice new college graduates who are eager to build their skill set and advance their career. It has been shown that 92% of employees believe that having access to professional development at their job is either important or very important. To recruit the very best people, employers must commit to their professional advancement, early on and throughout their career.
  • An Internship Program – Choose recent college grads that have a degree that relates to your industry. For the new intern, this gives them a chance to try out the company culture and see their growth potential before they commit to something long-term. For the company, they can have a trial period, become familiar with the talent and then hire directly from the internship.
  • Room for Advancement – Does the company promote from within? Is there a clear path to advance from an entry-level job to management? Candidates who have just left college want a position that has a clear career path. They will gravitate towards employers who can show that their current employees have moved through the ranks to prominent positions within the company.
  • Earning Potential – While the money isn’t all that matters, costs of living are rising, so compensation will be a major concern among recent graduates. Just as important as the starting salary is the promise of future earnings down the road.
  • Good Benefits – If the organization offers an alluring benefits package — such as health insurance and paid time off — this is considered a huge plus. Since many college grads may have a significant student loan to pay off, help with health insurance costs is a very big deal.    

What Do College Graduates Want in a Company?

In addition to paid job training, opportunities for advancement and great benefits, there are other important considerations for candidates looking for their first job out of college. Companies must learn how to appeal to the Generation Z job seeker.  

A flexible schedule is seen as a valuable “perk” for Gen Z workers. With the 24/7 online experience, they’re used to having their work and personal life merging and not structured around traditional 9-5 hours. Because of this, and the desire of many to raise families, flexibility is at the top of their wish list for job benefits. Does your organization let employees work flexible hours or occasionally telecommute?

Regular feedback is preferred by Gen Z employees, as opposed to the standard annual performance review. They appreciate having this information transfer be ongoing, so that they can keep meeting expectations. 

The balance of tech and personal interaction in the workplace is key for recent graduates. These individuals are highly tech-savvy, but they also want person-to-person interactions and a collaborative environment. 

In addition to compensation, today’s college graduates want to work at a company that aligns with their core values. They want to know that their efforts are contributing to a greater company goal and that they’re doing meaningful work. It isn’t just about a “fun culture” anymore — though that certainly doesn’t hurt!

How Can Your Organization Position Itself as an Employer of Choice When Recruiting Graduates?

Before advertising a position and starting the hiring process, take a good look at your organization’s image. Do you have a strong online presence and an exciting, informative website? Are you clearly stating your mission and objectives? Are you promoting the features that make your company attractive so you can recruit new college graduates?

Your business should:

  1. Have a highly visible online presence, including a robust website and profiles on Facebook, Instagram, YouTube, LinkedIn and Glassdoor. For YouTube videos, you can record video job descriptions that describe the job and the company, and why it’s great to work there. Consider using actual employees’ stories and show the office environment.
  2. Always use a strong, clear marketing message that reflects your company, and highlight any industry awards you’ve received.
  3. Showcase your company’s brand and what makes it a great place to work (i.e. promotion rate, diversity, sustainability, community involvement
  4. Advertise the company’s generous benefits package and commitment to career advancement on your career page. Include any other perks the company offers that can enhance your new hire’s lifestyle, such as free snacks throughout the day, special summer hours, a gym membership, company smartphone, student loan payment plan, stock options, great location, etc. Mention anything that makes your business stand out.
  5. Make sure that positions don’t have minimum requirements that exclude college hires (for example, entry-level jobs that require a college degree and two years of experience). Rethink hiring requirements; don’t expect a highly advanced skill set and direct experience from a recent college graduate. Instead, look for transferable skills; and include part-time jobs, volunteering and extracurricular activities as work experience.

The Value of Using Recruitment Professionals to Find Key Talent

While it is possible for a company to do their own recruiting and handle the entire hiring process, using a professional recruiting firm has many advantages. For one, they’re highly experienced at recruiting and have an existing talent pool for various industries. If they work regularly with your organization, they’ll know the types of candidates you’re looking for, which streamlines the entire process for a faster and more successful hire. 

Professional recruiters already have a strong internet presence and know how to effectively reach and recruit new college graduates, such as through on-campus recruiting and job fairs. They can help your company position itself so that you attract the most desirable new graduates. Most companies don’t have the necessary time for a thorough vetting process, which can waste a lot of valuable time. A recruiter does the initial work for you, so that you can instead focus on each interview — and on running your business.  



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How to Land Top Sales Leaders /blog/how-to-land-top-sales-leaders/ Tue, 19 Nov 2019 21:45:44 +0000 /?p=2037 Are you searching for someone to lead the salespeople in your organization? Unlike a sales rep. or sales manager, a sales leader puts into action the policies and plans of the company’s top management. They oversee the entire department to ensure that it operates smoothly with no problems. In a smaller organization, this man or […]

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Are you searching for someone to lead the salespeople in your organization? Unlike a sales rep. or sales manager, a sales leader puts into action the policies and plans of the company’s top management. They oversee the entire department to ensure that it operates smoothly with no problems. In a smaller organization, this man or woman might directly manage the representatives. 

Discover the most important skills for a sales leader, how to go about locating this type of individual and the questions you should ask in your interview.  

What Are the Key Skills of a Sales Leader?

The skills for a successful sales leader will be much the same as the skills required for salespeople —except at a higher level and with a wider perspective. They’ll need to understand their clients’ markets and business development strategies and have the vision to see future opportunities. This leader must be a “people person,” as they will be interacting not just with clients but with their team of reps and company executives. They may even be involved with training for the company’s reps. 

Some of the skills and qualities a sales leader need include:

  • Confidence 
  • Perseverance 
  • Patience 
  • Interpersonal skills 
  • Commercial awareness 
  • Planning 
  • Presentation skills 
  • Creativity 

How Do You Find Top Sales Leaders?

Exceptional sales leaders are busy generating business for their current company. To find and attract the very best, you need to do targeted outreach to these individuals, who are referred to as passive job seekers. These people are already employed so they’re not actively seeking employment, but they’re interested in hearing about new job opportunities.  

A professional recruitment agency makes it their business to stay in touch and regularly communicate with passive job seekers. This is one of their specialties, as it requires the kind of time and perseverance that companies typically can’t commit to. As part of the hiring process, a recruiting firm will review their network of top talent and reach out to these people with your company’s information and job opportunity. They will provide you with a short list of highly qualified, motivated sales leaders that you can interview to learn more about.

What Questions Should You Ask in an Interview?

When you have a vetted list of candidates and are ready to start conducting interviews, it is important to know which questions to ask. Any inquiry should encourage the candidate to speak freely about themselves and their skills, motivation and past sales performance. 

Here are top five questions to ask your candidates:

  1. Why Did You Want to Work in Sales?
    This answer will provide insight into their motivation for becoming a sales professional. Someone who is enthusiastic and passionate about what they do, rather than seeing it as “just a job,” will be a more valuable team member. A desire to connect customers with the best products and services demonstrates their ability to be empathetic, caring and helpful. 


  2. What Motivates You?
    Learning about their motivation will tell you a lot about their personality and ambition. Will they be driven to make customers happy and your company successful? Ideally, their motivation goes beyond financial compensation and involves a sense of pride in their achievements and a desire for customer satisfaction and company success.


  3. What Made You Successful as a Sales Rep?
    Pay attention to what they consider their most important qualities, as well as how they come across when speaking about themselves. The ideal sales professional will take pride in their abilities without being overly boastful. One important quality for a sales leader is to be able to listen — to clients, representatives and management. Encourage them to give you details of a few successful campaigns.  


  4. What is Your Sales Process?
    Have the candidate outline each step of their sales process, including how they begin with a new product. Look for someone with a deep understanding of the sales process — prospecting and initial contact, qualifying and approach, presentation, handling objections, closing and follow-up. They should understand the purchase funnel and be very familiar with sales language, such as conversion rates, bottom of the funnel, MQLs (marketing qualified leads) and SQLs (sales qualified leads). They should also be experienced with today’s selling tools and be tech-savvy. You’ll want to make sure your new hire can hit the ground running.


  5. How Do You Overcome Objections?
    Understanding a candidate’s process for overcoming objections will indicate their willingness to work with a potential customer to close the sale. Are they a good listener? Will they be patient with a prospect’s concerns and are they happy to answer questions?

The Key to Hiring a Top Sales Leader

There are other qualities as well as psychological traits that are desirable in the best leader, such as likeability, empathy, flexibility, dedication, emotional stability, well-roundedness and the ability to inspire and motivate reps. You likely won’t be able to know how your candidate measures up on each one. However, working with professional sales recruiters will help you with the search, provide you with the best talent and give you special insight into what makes the ideal sales leader. They will partner with your company to help you hire the right sales leader and build an exceptional sales team. 

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How Your Company Can Reduce Its Hiring Costs and Find Top Talent /blog/how-your-company-can-reduce-its-hiring-costs/ Tue, 19 Nov 2019 02:10:42 +0000 /?p=2035 According to Penn Foster, a U.C. Berkeley study found that the average cost-per-hire for a new employee was approximately $4,000, and as much as $7,000 for a higher-level professional. This cost was found to be even higher for small businesses. The Society of Human Resource Management (SHRM) found that it took approximately 42 days for […]

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According to Penn Foster, a U.C. Berkeley study found that the average cost-per-hire for a new employee was approximately $4,000, and as much as $7,000 for a higher-level professional. This cost was found to be even higher for small businesses. The Society of Human Resource Management (SHRM) found that it took approximately 42 days for a firm to complete a hire, depending on the job and the industry. A lengthy search incurs costs for a replacement worker and may reduce productivity while a less experienced temporary worker takes over until a new employee can be found.

Companies that can reduce cost-per-hire may be able to improve their bottom line. But how does one do this and still find the best employee that can help the organization grow?

What is Included in Recruitment Costs for a New Hire?

For companies doing their own recruiting, costs can include job postings, job board fees, background checks, an internal Applicant Tracking System (ATS), career events, career pages and marketing materials like benefit brochures. Attending career fairs have other costs, such as travel and accommodations.

One recruiting cost that is more difficult to measure is one’s time. According to Entrepreneur.com, small-business owners can spend as much as 40 percent of their work week engaged in non-revenue-generating tasks. This includes human resource management activities such as recruitment. Building a career page on a corporate website, advertising positions, researching candidates on social media, communicating with and managing candidates and conducting interviews can be extremely time-consuming. These activities take managers and other staff away from their regular work duties, which can lead to lost productivity, directly affecting growth and profits.

What Is a Cost-Per-Hire Reduction Strategy?

A company’s cost reduction strategy is the process used to reduce the cost-per-hire for each new employee, so that the company can realize greater profits. These strategies can vary depending on their services or products, and which part of the business they are focusing on. A cost reduction strategy for hiring new employees would include examining various options. The organization may consider finding an HR manager whose duties would include hiring. They might add the tasks to an administrator’s duties or hire a Personal Employer Organization (PEO) that would be your staff’s legal employer, handling all the payroll, benefits and other HR functions. Another way to reduce your cost is to hire a professional recruitment agency to work on an as-needed basis.

What Can a Business Do to Reduce Its Hiring Expenditures?

There is no “one size fits all” solution to reduce cost-per-hire. The best way to handle recruiting and talent acquisition will depend on the size of the organization, their industry and their hiring needs. Following are different staffing options which may reduce your cost and save both time and money.

  • Institute an Employee Referral Incentive – Even if the company doesn’t wish to offer a “finder’s fee” to employees for bringing in referrals, it is possible to strengthen the brand so that employees will want to encourage people they know to apply even without being compensated. The downside of an employee referral program is that there is no control over the quality of the referrals.

  • Have a Social Media Presence – A 2016 SHRM study found that 84 percent of companies used social media to recruit new hires, and 71 percent of recruiters said that it was effective in reducing the “time-to-fill” for non-management jobs. This tactic had a 67 percent success rate in filling management positions. A study by the Aberdeen Group found that 73 percent of millennial job seekers found their last position on social media. But of course, developing and building a social media presence and attracting the right followers takes effort and manpower.

  • Promote Career Opportunities on Your Corporate Website – If the organization has a robust website with considerable traffic, having a career portal that includes information about the business, open positions and online applications can be very effective. This is most advantageous for larger companies, since it requires regular maintenance and staff that can review candidate submissions.

  • Build a Talent Community – There may be applicants with strong skills that aren’t appropriate for the job they applied for, and other interested people who aren’t right for current positions. Maintaining a vetted pool of individuals who may be exploring new careers can help the organization fill future positions faster and more successfully.

  • Hire an HR professional – A growing establishment may wish to hire a full-time human resources specialist. However, the salary for an HR professional ranges from $91,000 to $120,000 per year. Also, an HR specialist may be responsible for payroll, benefits, training and employee relations, in addition to the hiring process. It may make more sense to have a professional dedicated to matching each open job with the right candidate.

  • Use a PEO – One way to cut hiring costs is to outsource HR altogether. However, companies may not wish to entrust payroll, benefits and other HR functions to an outside organization. 

  • Outsource Recruiting to a Professional Firm – Partnering with a business-savvy staffing agency offers many benefits, from a well-established talent community and social media presence to an intensely focused, “when you need it” recruiting service that can reduce your overall cost-per hire. The best recruiting agency will integrate seamlessly with your operations and become part of your HR or management team.  

Finding the Best People: Balancing the Cost and Cost-Effectiveness of Recruitment

An organization may be tempted to handle talent acquisition themselves, to save money. However, being besieged by a large field of candidates who aren’t sufficiently skilled for the position or who aren’t right for the company’s culture can waste valuable time and cost more in the long run.

There’s considerable value in trusting the recruiting process to professionals who have years of experience and who maintain a highly vetted community of premiere candidates. They will be able to quickly generate a small group of the best people, so that the manager can conduct interviews, get to know each candidate and hire in a timely manner.

Fast hiring of skilled people greatly reduces downtime, so that your company can continue growing. Working steadily with a recruiting agency that knows your business lets you handle every personnel change nimbly for long-term success. 

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