| The Annual Employee Performance Review should be | | | | Benefits Package becomes less the focus, as does |
| a thing of the past. Performances should be gauged | | | | pay scale for that matter. Let's not, however, diminish |
| by comparing the Actual and Targeted Budgets for | | | | the fact that Benefits are critically important to retaining |
| Company Divisions, and how employees in those | | | | and keeping talent, but if your Compensation Structure |
| business units contributed or hindered the Company's | | | | is designed as previously indicated, the entrepreneur |
| Budget. As a Business Consultant and Entrepreneur | | | | will find employees who are willing to defray the cost |
| with over 20 years experience working with different | | | | of Benefit Packages with the Company via cost |
| corporate cultures, I think an Employee's Performance | | | | sharing, HSAs, etc. |
| should be examined as it contributes to the company's | | | | A Benefits Package should be comprehensive in its |
| bottom-line profits. Shouldn't Performance Systems be | | | | offering, i.e. Health, Disability, Life Insurance and a |
| about a Company's Profitability and an Individual's | | | | Retirement Investment Vehicle, but if designed as part |
| Growth? Of course it should be. Performance | | | | of a whole, a progressive Compensation Package |
| Reviews ought to be part of a Company's | | | | whose sum of the parts is very competitive in |
| Compensation Structure to achieve better | | | | attracting and retaining top talent, then it becomes |
| subordinate-manager relationships and | | | | more a question of structure than importance. The |
| common-goal-teamwork toward achieving a | | | | best advice I can give to companies, as a Business |
| Company's Strategic Goals. | | | | Consultant with a Financial Planning background |
| Let's take this a step further to see its real benefit. | | | | working with small businesses: hire a Financial Planning |
| Doesn't Performance have a lot to do with a | | | | Expert who specializes in designing and implementing |
| company's Compensation Strategy, contributing | | | | Benefits Packages which aren't seen as the focal |
| significantly to the bottom line? Well, I say, everything! | | | | point of a Compensation Package but a part of. If |
| Fostering an atmosphere and structure of bilateral | | | | designed and packaged properly, a Benefits Program |
| relationships between managers and team members | | | | does not necessarily have to drain cash flow, and for |
| should be built into a Company's Compensation Plan, | | | | minimum financial contribution on the employee's end, it |
| as that achieves: | | | | can still be an attractive incentivized component of the |
| 1. Common goals toward achieving company success. | | | | overall Compensation Package. |
| 2. Higher individual productivity | | | | I highly recommend using a Financial Services |
| 3. Accountability between team members and | | | | Company to package the entire Benefits Plan as the |
| management, as well as, upper management and the | | | | bundling will save you significant dollars, and the |
| executive level. | | | | employee will have a cohesive, very comprehensive |
| 4. Happier employees work harder and smarter | | | | plan which offers a singular, un-complicated customer |
| 5. Retain highly valuable, well trained, experienced | | | | support system. It is vitally important a Company utilize |
| employees as this system fosters trust, improvement, | | | | the expertise of a Benefits Expert to find a Financial |
| loyalty and advancement. | | | | Services Company which offers substantial-breath of |
| 6. Achieves the same objectives as do Stock Option | | | | investment options and benefits to satisfy a wide |
| Plans. As people improve and add to a Company's | | | | range of employees, managers and executives. A |
| success, the reward of stock appreciation is the | | | | well-crafted Benefits Package should pay for itself and |
| financial payoff, more so than pay raises. | | | | not be a burden on Company Cash Flow. |
| However, the question to be asked is where do | | | | I also make the contention that Pay Scale is not very |
| Benefits fit into Compensation Planning for new and | | | | important in the overall scheme of things as long as |
| growing small companies? Well, I argue that it is more | | | | pay is not the focal point but a part of a Progressive, |
| a part of employee morale than it is a part of the | | | | Incentivized, Comprehensive, Competitive, Proactive |
| compensation package. Ok, so you maybe scratching | | | | based Compensation Plan. Highly talented and |
| your head on this one as Benefits are often viewed | | | | experienced people will work for less pay than the |
| as an integral component of a compensation package. | | | | market offers if a Company offers a Compensation |
| Where most companies dangle the Benefits Package, | | | | Package as prescribed in this article. The Performance |
| which in turn can be very expensive to the company, | | | | Preview plays into this fact that a fair employee and |
| as a carrot to attract and retain talent, the most | | | | executive evaluation and education system considers |
| progressive companies understand its importance in | | | | Compensation Structures and Benefits, and if done |
| the grand scheme of things. Young, growing | | | | properly, will save the company tons on their |
| companies have a hard time affording comprehensive | | | | Compensation Program yet still promoting higher levels |
| Benefits Packages and find them to be a big strain on | | | | of profitability. It is necessary to have a good balance |
| cash flow. However, if your Compensation Package | | | | between the two areas to attract and retain talent at |
| includes Stock Options, Tax Preference | | | | a level a company can afford and still have plenty of |
| Compensation, Key Person Protection and a | | | | room to grow. |
| Proactive-based Performance System, then the | | | | |