Group Benefits, or Bonus, Small Emp Dilemma

[yorkriver1]

One of my individual health clients, a small business owner--building contractor, has one administrative key employee, ready to bail for fancy group benefits at a larger employer.

He would like to try to save the relationship, hard to find/train a new person, at the beginning of his busy season.

Yesterday I mentioned group of two while on the run, forgetting he has other field employees.

This could get complicated and expensive. He has to weigh whether all the benefits of a larger company are something he can commit to. We are talking about not only health but also retirement plan matching.

I wonder if a big pay increase for that person could work. The admin person is on the spouse's group plan. Maybe find out equivalent costs and include in raise.

Any of you have experience advising in this situation?

 

[Gulfman]

One of my individual health clients, a small business owner--building contractor, has one administrative key employee, ready to bail for fancy group benefits at a larger employer.

He would like to try to save the relationship, hard to find/train a new person, at the beginning of his busy season.

Yesterday I mentioned group of two while on the run, forgetting he has other field employees.

This could get complicated and expensive. He has to weigh whether all the benefits of a larger company are something he can commit to. We are talking about not only health but also retirement plan matching.

I wonder if a big pay increase for that person could work. The admin person is on the spouse's group plan. Maybe find out equivalent costs and include in raise.

Any of you have experience advising in this situation?

I don't know much, but if this is a key employee, your customer could go under if this dude is irreplaceable.

What kinda Benefits is the other Co. Offering? 401k, Immediate Life, Family Health, etc???

 

[kgmom219]

1. Does the admin have an offer? Or just hinting its time to go?

2. He can't match the benefits. He just needs to take to her lunch and say "What's it going to take for you to stay?" Then he can decide if its worth it.

And I would make it a bonus, payable on 10/1, to get him through the summer. Because the reality is that she wants out. She'll be gone in a year, no matter what he pays her.

My two cents.

 

[yorkriver1]

1. Does the admin have an offer? Or just hinting its time to go?

2. He can't match the benefits. He just needs to take to her lunch and say "What's it going to take for you to stay?" Then he can decide if its worth it.

And I would make it a bonus, payable on 10/1, to get him through the summer. Because the reality is that she wants out. She'll be gone in a year, no matter what he pays her.

My two cents.

She did want out, gave 2 weeks notice, met with owner last week, now making offer to potential new employee, but still wants to offer group benefits, maybe keep staff longer.

I would agree, if they want out, it's probably not just benefits. I didn't want to say that to him, just figured it would come out eventually. So now, he didn't have to pay bonus, potential new hire is younger, lower premium.