Why You Can't Motivate with Benefits

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Here's the unfortunate truth: Whether or not you give benefits for your workers, you'll still get the same results. Employees, especially upper management, aren't motivated by perks -- but more by the culture of the company. Offering benefits for your workers is like hiring them: Its purpose is not to create results, but to get and keep them in the first place. Beyond that, giving benefits to your employees is a moral decision -- and in some cases, a legal responsibility. You probably won't be able to afford benefits when you're just starting your business. The major disadvantage to offering benefits is the associated costs. The less number of employees you have, the more costly it'll be. Once you get further a long the road though and have more employees, it's a good option to seek benefits for your company. It'll give you tax advantages, and help you pay a lower amount than you would if you were to pay on your own. What am I Required to Give? Let's start with what you're not required: You're not required to give benefits such as health, dental, vision, and retirement plans. You also won't need to furnish your employees with life insurance, paid holidays, paid vacations, and paid sick leaves. What you are required to do is to abide by all workers' compensation rules, and allow employees time off to vote, serve on juries, and perform military duties. You're also required to withhold social security tax and Medicare tax from employees, and your company must pay for all employee payroll taxes. Where available, you must also contribute to state disability programs. Giving benefits for workers won't create better results, it's something that we highly encourage you offer.

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Posted on February 21

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