Sales Outsourcing Experts on Benefits for Sales Reps
Last week we talked about how offering benefits to your sales representatives can attract better sales professionals, retain them longer, build morale, and get better, more consistent sales results. If you missed that discussion, you can find it here.
If you're smart, you'll view your employees as one of your greatest assets. You want them to see your company as a place where their careers can grow and they can feel comfortable staying for years to come.
One of the best ways you can demonstrate your commitment to your employees is the quality of the benefits we offer. Here’s a quick rundown of the most important benefits to consider for your sales representatives from Netpique sales outsourcing experts:
Health, Dental, and Vision Plans
All health insurance policies are not created equal. Shop around for one that includes quality benefits like free preventive care, low-cost office visits, prescription drug benefits, mental health care, etc. Be generous in the portion of monthly premiums that your company chooses to pay. And be sure to set up your payroll correctly so that the employee portion of the premiums comes out of their paychecks pre-tax, lowering their costs.
Dental and vision plans are a great complement to health care, and very inexpensive, so it makes sense to make sure that you offer them as well. Often you can negotiate a special rate for employees even if your company does not choose to contribute toward the premiums for these less expensive types of insurance. Again, your employees' dental and vision premiums should come out of their paychecks pre-tax.
To make sure that you are only offering benefits to those employees who are a good fit for the company and in it for the long haul, it's fine to set coverage to become effective at the 90 day mark of employment. Because situations change, you should also include an open enrollment period each year where employees can add or drop coverage.
Life Insurance, Short Term Disability Insurance, and Long Term Disability Insurance
Life, Short Term Disability, and Long Term Disability insurance protect your employees' families in the event of death, injury, or illness that might prevent them from working.
Both Short and Long Term disability typically pay a percentage of an employee's normal earnings for the period during which he or she is disabled. Short Term disability is intended for periods shorter than 90 days, and Long Term disability is for disability that extends beyond 90 days.
Life, Short Term Disability, and Long Term Disability plans are another example of benefits with very low rates (usually only a few dollars per paycheck), so it makes sense to offer them and encourage your employees to take advantage. Do note that although rates tend to be low, unlike health, dental, and vision, these premiums are taken out after taxes.
401(k) With Employer Matching
401(k) plans can be one of the most exciting benefits you offer to your employees. A 401(k) plan allows them to save money for retirement, pre-tax. They choose a percentage of their paycheck to defer toward retirement (e.g. 1%, 2%, 3%, etc.) The great thing is that because the deferral is pre-tax, it often has a minimal effect on take-home pay.
The way you can really show your employees that you care about investing in them is to offer 401(k) contribution matching. For example, here at Netpique sales outsourcing we allow employees to contribute as much of their paycheck to a 401(k) as they want, and have a generous 401(k) contribution matching program. For someone with compensation of $36,400 annually ($1400 per pay period), a 3% deduction would mean $42 per pay period. Added to the matching $42 from the company, that employee would be putting $84 toward retirement per paycheck with minimal impact to his or her take home pay.
Paid Holidays and Paid Discretionary Time
You might be surprised to learn that you are not required by law to offer paid holidays to your employees. However, not offering holidays is a good way to make them think it's a horrible job. You should make sure to offer paid holidays for all the major holidays: New Year’s Day (January 1), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).
Companies often agonize over how many paid sick and personal days to offer, and how to prevent employees from abusing generous sick time policies. One great solution to this is simply to offer one category of discretionary paid time off (PTO) that can be taken for any reason, including vacation, sickness, or personal days.
It's also important to be aware of time off that you must offer to your employees. Most states require at least unpaid leave to enable employees to vote or perform jury duty, and in some states you must offer paid leave for one or both of those reasons.
Offering quality benefits like these will help you attract and retain sales professionals who view themselves as an integral part of your company and know that you are in their corner. If you need help recruiting the best talent in your industry or setting up your sales team and compensation plan, Netpique sales outsourcing offers free consultations. Contact us today!