WHAT SHOULD YOU OFFER? Experts suggest that it’s not a good idea to assume you know what benefits your employees want. “You want to design a program that satisfies the needs of each person,” Silverstein says.
Vacations re-motivate and re-energize employees. But few home improvement companies offer their salespeople paid vacations because most are paid on commission.
Larmco Windows, in Ohio, resolved that dilemma. “We take [salespeople’s] annual earnings and divide by 52,” says vice president Joe Talmon. The company also pooled sales reps’ earnings and divided that amount by the 365 days in a year to give reps paid holidays — another perk not common for salespeople. “The guys in the warehouse get paid on Christmas and the Fourth of July,” Talmon says. “But the people who are collectively bringing in the millions? Companies just [typically] say: ‘Hey, you don’t deserve it.’”
Beyond paid vacation, holidays, and sick leave, the benefits most popular with employees are health insurance and retirement programs. “Health insurance is No. 1,” Salisbury says, “and has been for many years.” Lona says that companies generally consider offering health insurance when they have about 20 employees. “Once you have more than 20, a group insurance policy starts to make sense,” he says. Also, keep in mind that if you have just a few employees, and they’re married, they may already get health insurance through their spouse.
But whether your company is small and currently offers few or no benefits, or you’re large and are seeking to change or enhance your benefits package, the best way to find out what employees want or need is to ask them.
“It’s really going to depend on your strategy for retaining people,” Ronza says. Demographics often determine it. Workers in their 20s and 30s might want profit-sharing; workers in their 40s and 50s might want retirement. Companies with employee installers would be well-served to provide them with short-term disability (STD) and/or accidental death and dismemberment (ADD) insurance to ensure that they have paycheck protection should something happen. “That’s a huge one for contractors,” Ronza says. “STD and ADD are incredibly inexpensive to offer. It’s a minimal cost, and you can write it off.”
GETTING PERSONAL During the last 10 or 15 years, many larger home improvement companies have begun to offer 401(k) retirement plans. There are numerous vendors, and a consultant can help you draw up your plan document. You choose the match. “Once [employees] start getting quarterly statements and seeing their money grow, that’s when it gets personal,” Ronza says. “It’s an excellent attraction and retention element, especially [if employees] have been subcontractors.” He advises starting with a small match, “just to test the waters.”
Regal Home Improvement began offering its employees a 401(k) plan three years ago. “It’s their money,” Mullion says. “The [employee] can touch it and see it. From what I’ve gathered, a lot of guys are putting the maximum in there.”
