Financial programs attract, retain quality staff

Survey after survey ranks money fifth among the top reasons why associates stay in companies. A frequently overlooked key to effective recruiting and retention are financial programs.

First, signing bonuses are a tool for filling entry-level to top-management positions. Cash captures the attention of applicants. The fixed costs of base salaries and benefits are not affected.

Although most firms pay the full amount in one lump sum during the first pay period, installments over time ensure the newly hired team members will not quit prematurely. Employers should se-cure signed agreements requiring payees to pay back the entire amount if they re-sign prior to at least one year of service.

Second, begin a tuition reimbursement program or, if you already have one, revamp it. If your enterprise is extremely challenged in the areas of recruiting and turnover, expand approved courses to include personal development.

Review options such as Internet classes and equivalency tests to reduce classroom time and costs. The majority of programs have yearly cost caps or course number limits, require incumbents to be employed at least 90 days, and reimburse jobholders upon completion of a course with at least a "C" grade.

Third, offer discounts on services and products beginning on the first day of employment. Consider extending the discounts to family members, also.

Fourth, nudge the corporation's bank to provide free checking accounts, di-rect-deposit payroll, improved interest rates on savings accounts and special discounts on approved loans or credit cards. Arrange for banking personnel to conduct free, in-house seminars on relevant financial topics.

Fifth, consider flexible benefit plans that allow staff members to choose some or all of their benefits. Section 125 of the Internal Revenue Code details the regulations pertaining to cafeteria plans. In essence, employees are offered an array of benefits to select from and then permitted to purchase the benefits utilizing an "allowance."

Jobholder satisfaction increases when the jobholder has benefit choice versus a "one size fits all" strategy. Employers win by gaining control of benefit expenditures through proper pricing and credit methodologies.

Sixth, offer retention bonuses during troubled times, such as downsizings, mergers and reorganizations. "Stay pay" entices incumbents to remain, and when linked to productivity, it helps avoid the pitfalls of decreased performance.

As a general rule, provide 10 percent of the annual salary for nonmanagers and 50 percent for supervisors. The retention period covered will range from six months to three years, depending upon the estimated length of the uneasy period. Be sure to draw up a contract that provides specifics regarding your program.

If you like to be unique, consider offering unlimited sick pay, free income tax preparation, a bonus upon college graduation, or paying 30 percent of the salary of your workers in one lump sum at the beginning of the year.

Other creative choices include stock options to all levels of associates, adoption assistance, prepaid legal plans, fitness center discounts, and auto, home and personal property discounts.

Develop a comprehensive, strategic financial program to attract quality candidates and keep valuable team members.

The payoff is well worth it.

(Lynne Haggerman is president/ owner of Haggerman & Associates, a retained search, outplacement, in-house management training, and human resources consulting firm.)