Press Room

Programs that will make your employees thankful

Money Management

Monthly financial advice
from the MACPA

For release: November 2007

Americans gather together each Thanksgiving to consider the many things for which they’re thankful. As we take stock, it’s a good time of year to assess your company policies and procedures to be sure you’re offering programs that will make employees grateful to be working for you, according to the Maryland Association of CPAs.

A 2006 survey by the Society for Human Resource Management found more than three-quarters of American workers were looking for new jobs. In this competitive hiring environment, it’s a good idea to reward your talented staff members for their dedication.

Compensation comes first

Not surprisingly, attractive compensation is a very important element in employee job satisfaction. That’s why it’s critical to know the current market rate for various positions and to make sure you’re offering at least as much.

The best benefits

Workers have also come to expect competitive health care and retirement benefits.

Consider turnover costs

While generous salaries and benefits may seem expensive, CPAs advise that the cost to replace unhappy staff can be even higher, beginning with the costs to productivity when you hire a bad employee. Expenses also include job advertising and recruiters’ fees, training, accrued salary paid to a former staff member and the cost of professionals’ time spent on interviewing and paperwork.

You’ll also have to factor in the cost of opportunities lost and projects left unfinished while a position is vacant, and perhaps overtime expenses when other employees pick up the slack. In the end, it’s likely less expensive to raise salaries or improve benefits than to cope with constant turnover.

Career advancement is key

If you’re already offering attractive salaries and benefits, how can you differentiate yourself in the hiring marketplace? Ambitious professionals often seek out the strongest chances to advance their careers. As a result, businesses that have clear career tracks or excellent training and education opportunities will be at an advantage.

Many companies offer workers some form of tuition assistance. Similar perks that involve no cash outlays include formalized on-the-job training and opportunities to take on greater responsibility. Employees will be less likely to quit if they’re convinced that working for you is the key to a great career.

Keeping well

Wellness programs are another increasingly popular benefit that will help in your efforts to instill loyalty. They include smoking cessation workshops, weight loss and stress reduction programs, and gym memberships or discounts. While these programs may seem costly to institute, they reduce turnover costs and health care insurance bills.

Overlooked options

There are many other benefits that companies can provide that will help retain staff. For example, onsite or emergency child care options can be a very appealing benefit to young parents. Discounts on company products or services are a relatively inexpensive benefit that employees will appreciate. Parking privileges or transit subsidies that make commuting cheaper or more convenient for staff is another perk. Depending on your budget, providing free coffee or lunches will also boost morale.

Small businesses turn to CPAs as their most trusted advisers. Your CPA can help you evaluate the cost benefits of various employee compensation and benefits program, or offer advice on tackling any other challenges affecting your company.

Only CPAs are equipped to address your full range of financial needs with integrity and insight. In Maryland, CPAs must pass a rigorous two-day examination, adhere to strict ethical and professional standards, and, beyond college, complete 80 hours of continuing education every two years to be certified by the state — accountants do not.

Your doctor is certified; your lawyer is certified. Make sure your accountant is a certified public accountant.

For CPA referrals in your area, contact the MACPA at (410) 296-6250 or click here.

The Maryland Association of Certified Public Accountants (MACPA) is a statewide professional association that provides leadership, information and services for its nearly 10,000 CPA members, who are employed in private practice, industry, government and education. CPAs are business and financial professionals who have passed a rigorous two-day examination in order to be licensed by the state. CPAs are committed to protecting the public interest, and must adhere to stringent ethical and professional standards and continuing professional education requirements.