Top Benefits for Executives at Your Company
Many businesses choose to show their executives how much they are valued by offering an executive benefits program. This helps with employee retention, productivity, and hiring. Keep your business ahead and stay competitive by offering some of these benefits.
Offering equity compensation is a great way to get executives more invested in your company. There are several options you can go with for equity compensation. Stock options allow your executives to purchase stock in your company for a predetermined price. You can also choose to go with non-qualified stock options, restricted stock, or performance shares. The tax consequences differ for each option, so do some research into which option makes the most sense for your business.
One of the top things employees look for when searching for a job is retirement benefits. Offering these benefits can also help with employee retention. As with equity compensation, there are several plan options you can choose. 401k plans are the ones most often discussed, but there are several other options that could work better for you. For example, a cash balance plan lets you contribute far more money each year than a 401(k) plan. This plan offers a very high contribution limit, so your employees can build up a good amount for retirement. The contribution is taken directly out of their yearly compensation so it's incredibly easy for you as an employer.
Paying for private health insurance plans is incredibly expensive. Many people end up having to go without health insurance because they can’t afford to pay the bills, even with a job. Offering your executives health insurance shows them that you care about their well-being. This preventative care keeps your employees healthy and working harder, and you’ll save the stress of employees being out for illness. Offering these health insurance plans is also a tax deduction on your part. You will also be able to get a group rate, meaning you’ll pay far less for the health insurance than the employees would out of pocket. Altogether, this is well worth the investment.
Offering benefits to your executives rewards their leadership skills, and motivates them to continue working for you for years to come. Offering these benefits can also attract the most qualified applicants to your company. If you’re unsure of what you should offer, try a few of these options.
Check out this article on other key relationships that startup founders need to build!