Financial programs provide employee benefits

to stay with employers. However, financial programs and benefits – a key ingredient in

effective recruiting and retention – are often overlooked. Following are several financial benefits that can be used to attract and keep employees.

Signing bonuses are a tool for filling entry-level to top management positions. Cash captures the attention of applicants. The firm saves money because the fixed costs of base salaries and benefits are not affected. Although most organizations pay the full amount in one lump sum during the first pay period, installments over time ensure that the newly hired team members will not quit prematurely. Secure signed agreements requiring payees to pay back the entire amount if they resign prior to at least one year of service.

Begin or revamp a tuition reimbursement program. Consider restricting reimbursement to job- and business-related courses so that the money spent is actually assisting the corporation. If your enterprise is extremely challenged in the areas of recruiting and turnover, expand approved courses to include personal development. The majority of programs have yearly cost caps or course number limits, require incumbents to be employed at least 90 days, and reimburse job holders upon completion of a course with at least a “C” grade.

Offer discounts on services and products beginning on the first day of employment. An added bonus for the organization is increasing staff familiarity, which results in better spokespersons and increased sales from referrals. Associates will also gain experience from a client perspective to augment customer service skills. Consider extending the discounts to family members, also.

Nudge the corporation’s bank to provide low-cost financial perks. Look into free checking accounts, direct-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.

Consider flexible benefit plans that allow staff members to choose some or all of their benefits. Section 125 of the Internal Revenue Service 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.” Employee satisfaction increases due to benefit choice versus a “one size fits all” strategy. Employers win by gaining control of benefit expenditures through proper pricing and credit methodologies.

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 firm specializing in management training, retained search, outplacement and human resource consulting.