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Benefits We Seldom See….Or Know About…..Why is That….?

January 26, 2017

By Sid Chadwick, Chadwick Consulting, Inc.

“Eighty percent of success is just showing up” ……….Woody Allen

INTRODUCTION:
The more I reflect and observe, the more I realize that quote from Woody Allen --- is often true --- on many levels.

At a recent Plant Manager’s Peer Group Meeting, we were listening to the challenges…and costs…. of replacing personnel --- who were experienced, and valuable. (Discussion made it clear, this is a steadily growing problem.)

Employee Hidden CostsGenerally accepted “Rule of Thumb”: “It costs about what you pay an employee each year --- to replace them.”

After a few moments, I asked, “How many of you provide your employees a “Benefits Statement” --- preferably quarterly --- but at least once a year --- of what the company pays for each employee --- that employees do not see in their take-home paycheck?”

Only one of the eight attendees could respond positively.

Here’s a representative list of what benefits we collectively developed are possible to communicate --- quarterly:

  1. Social Security
  2. Contributions to Health Insurance (Personal and Family)
  3. Dental, hearing, and eye-sight Insurance
  4. Unemployment Insurance
  5. Disability Insurance
  6. Life Insurance
  7. Catastrophic Health Insurance
  8. Education --- Tuition and Books Support
  9. Work Clothes/Uniforms
  10. Profit Sharing
  11. Retirement
  12. Education & Training
  13. Upgrades to workplace Software, and Equipment
  14. Paid Vacation
  15. Paid Sick Days
  16. Personal Days

The impact of knowing what your company pays --- on your behalf --- every quarter --- is well worth your time to communicate --- to each employee.

Benefits Seldom SeenHidden, Underlying Benefit: After you’ve developed a system for communicating --- in writing --- this profound message to each employee, start asking your customers if they could use such a communication vehicle to reduce employee attrition? (Such a program could develop into quarterly projects, and a specialization for your company.)

You already know the answer.

SUMMARY:
Any improvement in cutting employee attrition --- is probably worth the effort. Experienced employees represent critical capital --- to every business, to every organization.

Do your employees know, regularly, what your company pays on their behalf, that they don’t see in their paychecks?

Would they (and you) be surprised what that adds up to, monthly? Quarterly?

“He who does not risk will never drink champagne” ……..Russian Proverb

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