I'm curious to know if our pay rates would be considered over/under/equal to comparable businesses within our industry/region.
Location: South East
Shop Size: 20,000 sq/ft
Benefits: 6 paid holidays, 6.5 paid vacation days, Discretionary bonus and additional paid time off based on performance metrics.
No health insurance, no 401-k
Where do I stand?, most job boards do not post compensation rates, so it's difficult to gauge. I looked into a group health plan at one point, but could not gather minimum participation numbers to be eligible.
It seems to me that your pay scale is likely in line with others but you are weak on the benefits side.
From what I've seen health insurance is pretty much a standard in a company of your size. The emplyoees negative response may have been due to what you were able to offer. A 50/50 split on cost to the employee only (not the employee's family) is rather typical.
A 401k is a nice feature if there is interest on the part of the employees. The cost to the company is a small percentage of employee salary although legal maintenance costs can be high.
I can't speak to the appropriateness of 6.5 vacation days other than to say long term employees often receive 2 weeks or more. Also I don't see any mention of paid personal or sick days which are also rather commonly provided.
In my earliest working days you got paid when you worked. I never saw much in the way of benefits. As a business owner I've learned that benefits need to be part of the plan in order to keep good employees.
I have 5 employees and those hourly rates are in line with what i pay. I do not have a 401K plan or health care, but after about a year of service i do pay for christmas, new years,labor day,and a couple more. 1 week paid holiday after 1 year as well. One of my guys comes from a distance and i fill his tank up once a week. Harold.
If you are a corp a top heavey 401k would allow you the owner to give your self and your employees money instead of giving it to the government in taxes, in the end it may cost you .35 to .44 to give an employee a dollar if you attribute the dollars you get vs the taxes you would pay. I.e., give the government a dollar or give the employee .65 and the government .35. the bonus yourself and make a max contribution. If you are 40 and contribute 18k a year you will have plenty to retire on.
You also get the largest share of employees who leave before they fully vest.
Health insurance may make more sense to pay more to cover some portion of what employees can purchase on an exchange. Unfortunately you can't pay a 20 years old 200 more a month and a 40 year old doing the same job 500 a month.
A group disability plan is the cheapest way to buy disability insurance for your self which as an owner you should have.
6 federal holidays, 6 personal days in first year, additional 8 hours per additional year of employment, to max 16 personal days, health insurance with variable employee contribution depending on type of policy chosen, flex time, SIMPLE retirement plan with up to 3% match. Excellent work environment as well.
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