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Competitive Benefits Small Business Owners Can Offer Their Employees

Feb 10, 2023

After several interviews with a great prospective employee, you may be ready to extend an offer of employment. Job seekers may be excited about the new role, but if the employee benefits are not competitive with other offers, they may decline the job and move on. Small businesses must find the balance between competitive employee benefits that keep employees satisfied and committed to the company but don't break the budget. Finding this balance will help your small business improve employee retention and reputation. 


Retirement Plans


As excited as your employees might be about working for your small business, most people don't want to spend their entire lives in their careers. Having competitive retirement packages is essential to attracting and retaining employees. Even though there are many options for retirement plans, such as 401(k), Roth IRA, SEP IRA, and more, these options have been traditionally challenging for small business employers to offer. 


Recently, the SECURE 2.0 Act of 2022 received bipartisan support and was signed into law by the Biden Administration. This legislation would provide flexibility for retirement savings by providing significant tax benefits to small business employers, increasing the age for taking RMDs, automating 401k enrollment, and more. Small businesses of less than 50 employees who sponsor a new defined contribution plan for their employees can receive tax credits for employer matching contributions for the first few years: the credit will cover 100% of employer matches for the first two years since the plan's creation, 75% of employer matches for the third year, 50% for the fourth year, 25% for the fifth year, and tapers to 0% in the sixth year. The various aspects of the SECURE 2.0 Act will take effect between 2023 through 2025. 


Health Insurance Packages


The ACA requires that small businesses offer health insurance to employees who work at least 30 hours a week. Small business owners should look at their budget to see which coverage options will best fit themselves and their employees – group health insurance plans are more common for larger businesses but can still be used for small businesses with proper planning. 


Dental and vision plans are often separate from health insurance plans and can be a great additional benefit to attract employees (they typically have much lower monthly premiums). Small businesses can also deduct some of the cost of dental and vision plans from federal business taxes since they fall under healthcare-related expenses for employees.


Fitness and Lifestyle Incentives


Another benefit small businesses can offer employees to increase employee satisfaction is fitness and lifestyle incentives. Your employees will be more likely to be productive and thrive when caring for their mental and physical health. Larger businesses often create more complex corporate wellness programs. For a small business, supporting your employees' wellness could be as simple as partnering with a gym, yoga studio, or community center to offer your employees a discounted rate. Informally, you can opt for a healthy catered lunch for your employees once a month or quarter. 


PTO Packages


Hard-working, quality employees need their time off. Although PTO is not mandatory for small businesses, most will offer a plan to their full-time employees. For part-time employees, many companies opt for pro-rata PTO hours they can accrue as they work. There's no magic number for PTO; every small business must assess what works best for them. That said, many small companies offer between 10 to 20 days. 


Professional Development 


Employees who feel that their employer is not investing in their professional skills and providing development opportunities are more likely to leave the company. Adding professional development opportunities can increase retention and attract top talent. Professional development can be anything from webinars, guest speaker series, a convention, training classes, leadership conferences, skills workshops, and more. Larger gatherings, like conventions or conferences, may not be the right fit for every company, but any company can start with a video series, workshops, or webinars. 


Keeping Employees Happy


The bottom line is that employees who feel supported by their employer are more likely to be productive, be satisfied, stay in their role, and speak well about their work to their friends and family. In competitive job markets, comprehensive and innovative employee incentives will help your business stand out and attract the right talent. Small business owners should also ensure they rework employee benefits programs over time/as needed to keep their current team in place. 


Connect With The Alexander Group


Creating an employee benefits plan that fits your budget and keeps employees happy is one of the many issues business owners must navigate. At The Alexander Group, we coach business owners on running their businesses in line with their vision and exceeding their goals. Our one-on-one coaching will help you reduce stress by balancing your business and personal lives.


Having a group of individuals with similar goals is also vital. Our group of Greater St. Louis area business owners collaborates, discusses everyday issues, and develops dynamic solutions. When business owners pair this with our one-on-one coaching, they set themselves up for success. Contact us today if you're a business owner ready to commit to improvement!

What Small Business Owners Need to Know About Email Authentication Requirements

08 Mar, 2024
Have you been having trouble sending out bulk emails and email blasts recently? Are you suddenly having deliverability issues with clients and vendors you've been emailing for years? If so, you're not alone — Google and Yahoo rolled out new DMARC requirements in February, creating headaches. We have heard that many of our small business owner clients and their IT departments are having such headaches.  To investigate this issue, we have leaned on IT expert and long-time TAG peer board member Fred Moore of Moore Computing. Fred has walked us through changes to DMARC and offers advice on how small business owners can get their emails back into the inbox. While DMARC changes have thrown many into a temporary tailspin, the changes represent a move to safer and more secure email communication for all parties. Let's discuss what small business owners need to know about DMARC, how they can ensure their emails reach customers' inboxes, and how to keep their business digitally secure. What is DMARC? Cybersecurity measures are similar to cars: most of us drive one daily, but most are unable to lift the hood and understand exactly how it runs. Most of us rely on cybersecurity measures to keep our businesses safe online, but we may need help understanding the technical elements that keep us safe. That said, all small business owners should have a general background in cybersecurity, and DMARC is a great place to start. DMARC stands for "Domain-based Message Authentication, Reporting & Conformance." The idea behind DMARC is to limit the volume of scams and phishing on the internet. DMARC works with SPF and DKIM. SPF (Sender Policy Framework) is a list of services and servers that are authorized to send emails on behalf of your domain, and DKIM (DomainKeys Identified Mail) is a digital seal that verifies the content of your email hasn't been altered or tampered with. DKIM is also able to withstand email forwarding, whereas SPF can not. Senders and Recipients At its core, DMARC validates the authentication of the sender of an email message. When there are deliverability issues with a message, it usually falls back on the sender. Small business owners know the importance of getting marketing campaign emails and other communications into their customers/clients' inboxes; to accomplish this, it is crucial to follow all protocols to ensure you have the best chances to reach customers' inboxes at an optimal place (i.e., not the spam folder), and avoid spam complaints. How does your email make its way to recipients? It follows a basic flow: ● The email is composed and sent ● The sending mail server will add DKIM ● The email is sent to the recipient's server ● Validation tests begin, checking DKIM, SPF, and DMARC policies ● The email either passes, is quarantined, or is blocked/deleted ● If the email passes, it goes through the recipient's user filters and inbox rules

The Costly Mistakes of DIY: Why Small Business Owners Should Invest in Professionals

11 Jan, 2024
Running a small business is a challenging task. It requires dedication, hard work, and juggling multiple responsibilities. Often, small business owners try to cut costs by taking on tasks themselves, even if they are better off calling a professional. While the intention may be to save money, the reality is that DIY can lead to costly mistakes and legal pitfalls. Let's explore the common mistakes small business owners make when they opt for a do-it-yourself approach and why investing in professionals like lawyers, accountants, and general contractors is crucial for long-term success. The Myth of Saving Money Many small business owners believe that handling tasks themselves will save them money in the long run. However, this is often a misconception. While it may seem cost-effective initially, the lack of expertise and knowledge in critical areas can lead to costly mistakes that can ultimately hinder the growth and profitability of a business. The Value of Professional Services Professional services, such as lawyers, accountants, advisors, and general contractors, bring expertise, experience, and a deep understanding of industry regulations. They can provide valuable guidance, prevent legal issues, and help small business owners make informed decisions that align with their long-term goals. Most of the time, business owners don't consult with their advisors because they are wary of spending money on bills from their advisors on top of other expenses. The phrase "You can pay me now, or really pay me later" comes into play in these situations. Business owners should not be afraid to discuss money and bills from professionals with their advisors, and they should properly compensate advisors for their time. Complaining about spending a few thousand dollars to review a $20,000,000 contract can cost hundreds of thousands due to difficult payment and dispute resolution terms.  Protecting Your Intellectual Property Intellectual property (IP) is a valuable asset for any business. Failing to protect it can lead to brand confusion, loss of revenue, and legal battles. Trademarks, copyrights, and patents should be filed appropriately and protected to ensure exclusive rights to your brand name, logo, or product design. How Professionals Can Help Lawyers specializing in intellectual property can guide small business owners through filing the necessary documents and paying the required fees. They can conduct an IP audit to identify and protect essential assets, develop IP protection strategies, and enforce IP rights if violations occur.

What Business Owners Can Learn From Al Pacino’s Locker Room Speech in “Any Given Sunday”

09 Oct, 2023
In the 1999 film “Any Given Sunday,” directed by Oliver Stone, Al Pacino delivers a powerful and memorable locker room speech that has resonated with me for years. The speech, delivered by Pacino’s character, Tony D’Amato, before a crucial football game, encapsulates the essence of the film and the themes it explores. While the speech is specifically about football, its underlying message can be applied to various aspects of life, including business. The idea of fighting for inches, continuously improving, and eliminating mistakes is a powerful metaphor for the importance of perseverance and adaptability in business. It highlights the value of small victories, incremental progress, and the relentless pursuit of excellence. For business owners, the speech serves as a reminder to focus on the details and the small wins that can accumulate over time. Just as a football team must fight for every inch on the field, a successful business must be diligent in managing its resources and seize every opportunity for growth. It emphasizes the importance of building a team that shares the same values and is committed to continuous improvement. Think of it in terms of all the inches and seconds around us in business and how $200 here and $50 there adds up. The whole concept of continuous improvement, eliminating mistakes, and fighting to get better is what I believe Oliver Stone intended when he wrote it. I love it as much today and as when I first saw it and the metaphor of getting into business and being profitable. You can read the transcript here . Or watch it here:
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