5 Revenue-Neutral Benefits for Small Businesses
The financial scars left by the past few years won’t disappear soon, and cash flow continues to be an issue. Businesses must be strategic in how they invest their limited resources.
Crafting compensation plans to attract lost talent requires careful consideration. Fortunately, there are cost-effective perks and benefits businesses can use to create attractive compensation packages. These benefits can even be revenue-neutral or better.
What is a revenue-neutral benefit?
A revenue-neutral benefit is anything offered to employees that produces tangible gains for the business. Some benefits require no cash outlays, like employee-friendly workplace policy changes. Others require upfront investments that create enough additional value to offset their costs.
Choosing the best revenue-neutral benefits
It’s crucial for businesses to be selective when choosing benefits in a post-pandemic environment. Employee attitudes have shifted, making certain benefits more attractive. Here are the top five revenue-neutral benefits businesses should offer:
1. Flexible working arrangements
Remote work and flexible schedules have become highly desirable to workers. Offering these options can lead to significant cost savings for businesses. Businesses can provide digital tools to help employees work from home and access a wider labor pool.
2. Professional development opportunities
Workers now seek digital upskilling opportunities. Online training programs and certification courses can be offered to enhance employee skills and productivity at a minimal cost.
3. 401(k) plans and matching contributions
Businesses can offer tax-advantaged savings through 401(k) retirement plans and match employee contributions. These plans provide a crucial benefit for workers while offering tax advantages to the business.
4. Travel subsidies
Businesses can provide travel subsidies without significant costs by offering pretax salary deferrals or company car insurance for work-related vehicle use. These benefits save money on insurance coverage and reduce liability.
5. Unlimited paid time off
Implementing a policy of unlimited paid time off increases employee satisfaction and productivity. Most employees won’t take long vacations, resulting in more productive days. It also helps attract high-skill workers and saves money by avoiding unused vacation day payouts.
Benefits that don’t bust budgets
Investing in the workforce is crucial for business growth. By adding these five revenue-neutral benefits, businesses can improve performance without overspending.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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