The Tribune

CHAMBER VOICE

By Ian Ferguson

As one year closes and another rises, businesses are often forced to re-evaluate positions taken in the previous year and sometimes do things differently. As a business expands, one of the things that should automatically become part of the growth transition is the extent to which the principals extend additional benefits to key stakeholders. Many companies have beautiful incentive bonuses attached to employee performance, plus elaborate reward and recognition programmes to celebrate employee success. Others hide behind difficult economic times and refuse to offer employees any form of benefit that might provide additional motivation.

Today, we begin the conversation around what constitutes employee entitlements versus benefits that are based on the resources available to the organisation. Many companies, particularly those that are smaller and struggling, will harp on that employees are due nothing more than their wage earnings. More established companies, in many cases, present their employees with a full compensation package inclusive of competitive salaries, pension and retirement plan, medical insurance benefits, year-end bonuses, paid vacation, salary advance opportunities, study leave, life insurance, tuition reimbursement and other benefits.

Smaller businesses that are growing and expanding need to plan a careful phase-in of employee benefits so that, as they grow, they will continue to attract and retain the talent needed for further expansion. Employers can expand this employee benefits package as resources allow.

The truth is, employers who hope to retain solid, hard-working employees should be prepared to offer basic benefits. In addition to salaries, good benefits provide important resources that not only help build a positive working relationship between employer and employee, but also promote good work habits and financial practices.

Employers should ask themselves: Would I want to work as an employee in the organisation I have established?

Employees, too, have a responsibility to ensure they are clear as to what they will and will not receive as a result of gaining employment with a company. It can become quite troubling to hear employees talk in a disparaging tone about benefits they do not have when they were fully aware of what they were signing up for. Employees, then, must take some time to review the benefit plans so that they can make an educated decision based on the information provided by the prospective employer.

Some questions you may want to ask include:

Does the employer pay for health insurance coverage? If so, how much for individual coverage and/or family coverage? Is the premium deducted from my pay cheque? How much is the deductible?

Can I review a summary of the health insurance plan options? What restrictions and limitations are there? What about pre-existing conditions? When does coverage begin?

How much sick time, vacation time, and holidays are provided? When do benefits start to accrue?

What type of pension plan is there? How much does the company contribute? Is life insurance provided?

Does the company offer short-term and long-term disability coverage?

Are there educational and training benefits? If so, are they are available for my family, as well as for myself?

NB: Ian R. Ferguson was educated locally, regionally and internationally, having earned a Master’s Degree in Education from the University of Miami. During the course of his nearly 20 years in education, talent management and human resources, he has served both the public and private sector in senior management roles. He currently serves as manager of the Chamber Institute, and as a local consultant in the field, having assisted hundreds of local and regional businesses in improving business and service excellence through their human capital.