Keeping good employees is crucial to a small business. You need hard-working individuals who will stick around for the long haul. You don’t have the resources to search for replacement employees constantly.
How do you make sure your employee retention rate stays high? Make sure you’re paying your employees in a manner convenient for them. Read on to learn about ways to pay your small business employees.
Determine Payment
The first step for paying employees is to determine how they will be compensated. Most businesses pay employees wages. Wages can be paid in a fixed salary or an hourly amount.
Depending on your industry, you may choose to pay your employees a commission. This is a specific amount of money given when a task is completed. Commissions can be paid instead of a salary, or they can be additional compensation.
Many companies opt to pay bonuses. A bonus is an extra sum of money given on top of normal pay. Employers pay bonuses for a variety of reasons, such as productivity incentives or holiday gifts.
Compensation may not always come in the form of straight money. Some businesses offer employees the opportunity to buy and sell company stock at a specific price.
Small business finances may not always allow for competitive salaries. That doesn’t mean you can’t provide attractive compensation for your employees.
Another form of compensation is insurance. Employers cover portions of the cost of an employee’s health insurance. This reduces the overall cost of healthcare for the employees and their families.
The more of a health insurance premium you can cover, the more attractive this compensation is to your employees. Many companies have made up for smaller salaries with great health insurance coverage.
Pay Options for Small Business Employees
These days, there are many payroll options for your small business. Traditionally, you had to pay your employees in cash or paper checks. Those methods still exist, but newer methods may prove better for your needs.
A popular method of payment is direct deposit. With this method, money gets deposited directly into your employees’ bank accounts—no need to go to the bank every two weeks.
But what if your employee doesn’t have a bank account? In such a case, cash is still a good option, but paying your employees this way can cause concern with the IRS.
Another option is to pay your employees with payroll cards. These cards function like debit cards. Your employees can use them to pay their bills and purchase items without a bank account.
Companies such as www.payactiv.com can help set up a payroll card system for your business. Payactiv can even help your employees set up systems for budgeting and saving money.
The Right Payroll Option for Your Business
Having a solid payroll plan in place is critical for your small business. Once you’ve determined compensation for your small business employees, choose a company that can help set up the right payroll plan for you.
Check out our business section for more help with small business success.