ERMUSR MISC. ISSUES 01-13-2004 - Laserfiche WebLink

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A RETIREMENT PLAN is another basic. A traditional de- Managing Time Off fined-benefit pension is a great retention tool but is Vacations and other days off can be handled in many becoming too expensive for many employers. Most different ways. Some companies are choosing to allot are shifting to cheaper defined-contribution plans their days off in one lump, making no distinction as such as 401(k)s. Others transform pensions into hy- to how much is vacation and how much is sick leave. brids,known as cash-balance plans, although such Most of them reduce the combined amount of time. switchovers can put longtime employees at a disad- But some keep it the same.This type of plan helps vantage. So many companies let those workers stick reduce abuse of sick leave and rewards conscientious with their old plans. workers. Other companies allow employees to opt for Going Beyond Basics extra paid leave in exchange for cutting back on other Although health care and retirement programs are benefits, such as reduced life insurance policies. fundamentals, good workers seeking stability are look- ing for more. Other Options Employers bidding for workers in a tight labor market A SAFE, PLEASANT WORKPLACE is high on their list of can get the edge by offering an array of little things expectations. It often means as that make life easier for time- much as good pay, especially if A traditional pressed employees, often at lit- ways to balance work and home tie cost. responsibilities are included. defined-benefit Examples include buying Flexible work schedules are a club memberships and offering hit with more workers, in the pension is a great group discounts from mer- form of flextime, a compressed chants,such as insurance and fi- four-day workweek, job sharing retention tool but nancial planning services, free or telecommuting.The key is to beverages and free Internet ac- help employees cope with per- is becoming too cess at home for personal as sonal demands and do a good job. well as business use. expensive for many Education and training pro- CAFETERIA PLANS can be a good grams build loyalty and improve • way to please the largest number employers. productivity. Community col- of employees. Workers get to leges can be a great resource. pick and choose from a buffet of benefits, provided More of them are offering courses tailored to a firm's the total cost of the benefits they select doesn't ex- needs. Another option is scholarship referral services. ceed a specific maximum set by the company. Stock options may have lost some of their allure, Such plans can help satisfy both younger and but bonuses have not. During competitive times older workers. For the young, membership in a health when profits are slim,many firms use cash bonuses in or fitness center may mean more than contributions lieu of pay raises to reward and retain top talent. toward retirement. Older workers might skip other Show employees all that the company does for benefits to get a health insurance plan that has lower them. Some businesses provide employees with an copayments and deductibles. annual statement listing all fringe benefits and show- . Helping with day care arrangements pays off with ing the total cost of compensation. It's an especially young parents. Some large firms have on-site day care effective way for firms with generous fringe packages facilities. Smalls are teaming up with other smalls to to show they provide more than paychecks. share costs. The federal government started to help in 2002 with a tax credit of up to $150,000 per year Remembering the Intangibles for firms operating a center. Most workers are not driven by money and benefits Other workers appreciate help with elder care— alone. They want to feel connected to the place for example, offering baby boomers the option of where they work and to be respected. Finding sincere purchasing long-term-care insurance for their aging ways to say"thank you"for a good job goes a long way parents and also for themselves. toward building a loyal and productive workforce. 20 I The Kiplinger Letter • KiplingerForecasts.com