Show me the money! Monetizing benefits can often make a difference

What will it take to get your employees to stay with the company/? What will it take for a job candidate to choose your firm over another? What role does the benefits package play?

Benefits can often seem abstract. Suppose you could convince employees to think of them in terms of specific dollar amounts or money left on the table, so to speak.

1. Matching retirement plan contributions. 67% of companies offer employees a retirement plan. Suppose the firm matched your retirement plan contributions dollar for dollar and you were contributing 3% of your $100,000 salary. You would be contributing $3,000 and the firm would be adding $3,000 of their own money to your account.
2. College tuition assistance. According to Statista, 47% of U.S. companies offer college tuition reimbursement in some form. This can apply to both undergraduate or graduate studies. If the employee intends to continue their education, what would this cost them otherwise/?
3. Employee stock purchase plan. About 49% of S&P 500 companies offer employee stock purchase plans. The discount might be 10 to 15% off the current share price. Unlike retirement plan contributions where contributions need to vest before they belong to the employee, the employee can take possession of the shares, perhaps on a quarterly basis and sell them immediately, if they chose. A $10,000 total purchase at a 15% discount might mean a $1,500 profit when sold.
4. Vision program. Suppose your firm offered a program allowing you to get one or two pairs of eyeglasses each year. Unlike health insurance where you get checkups and hope nothing bad is discovered, a person wearing glasses intends to replace them from time to time. If your program includes this benefit, it is a cost you would otherwise incur on your own.
5. Health savings account. Some companies offer HSAs. They allow the employee to deposit pretax dollars and withdraw them to pay medical bills. This eliminates the need to pay some medical bills with after tax dollars. In some cases, companies match the employee’s HSA contributions. This also has a measurable value.
6. Free meals. Some companies provide lunch for employees at no cost. Others provide dinner for employees working after hours at the office. If your firm provides this benefit, it replaces a cost you would pay with after tax dollars. How much are free meals worth?
7. Child care at work. Not too many companies offer this benefit, only 6% by some estimates. The Wall Street Journal indicated companies are starting to look at offering this benefit. If your employee needs to pay for child care at home, it is easy to calculate the financial value of this benefit.
8. Commuter benefit programs. We have all heard about the tech companies running their own bus services around San Francisco. Some companies offer commuter benefits to offset the costs of getting to and from the office. If your firm offers this benefit, it is easy to figure out the cost savings, compared to what an employee would otherwise pay.
9. Free parking. This benefit has different values depending on location. Getting free parking as a perk at work has great value if you work in Manhattan, less if you work in the suburbs. If you needed to pay for parking (but do not have to) what is the dollar cost you are saving?
10. Gym membership. Reimbursing employees for gym membership or offering an onsite fitness center has significant value. 42% of millennials, 39.4% of Gen X and 36.7% of Gen Z actively work out. Gym membership is a cost they would otherwise bear themselves. It has value.

Related: Equity compensation: The new retirement plan?

There are many other benefits like health insurance, dental and life insurance firms provide. Those have costs, but employees tend to expect them to be offered by every employer. Some benefits, like those mentioned above, can be directly translated into dollars and cents. If your employees are not taking advantage, they are literally leaving money on the table.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.