When employees sign on to a new company, they take into account more than just their salaries. Studies find that the office culture, work-life balance, ability to move up within the organization all influence a person’s onboarding decision. But some of the most important incentives in starting a new position are the benefits. What ways does a company look to better their employees lives? And these benefits have changed quite a bit in the past decade. Now it’s not just a 401K, health, dental, and vision insurance. Other benefits include gym memberships, assistance in student loan payments, extra vacation days. Companies are learning that happiness, wellbeing, and health are all strong factors that contribute to an employee’s happiness. But as a CEO, how do you ensure your employees are happy without breaking the bank? And how does the CEO benefit from the increased benefits he or she offers? Let’s look at this common problem: the executive who didn’t fully understand the benefits his company offered, like pension or savings plan choices. This executive wasn’t fully participating in them, even though he thought that he was. He never fully understood what was being offered. He came to see us when he was in his late 50s and had been with his company for a long time. We noticed there was a particular deferred compensation plan that would allow him to put away his total bonuses for the year. This strategy would save him over $200,000 a year in taxes. He didn’t need all the pay he made, and this way, he could add another $200,000 or more per year to his savings without even feeling it—a nice investable cash find. By fully understanding what his company was offering his employees, he could better serve as an advocate for the benefits that were being offered. Many people don’t realize there are other benefits within a company that can help save large sums of money — like this deferred compensation plan. It just requires researching what is being offered.
For more information on maximizing your companies benefits, visit tswealth.com.
