“Truth is confirmed by inspection and delay; falsehood by haste and uncertainty.”
If you’re in human resources, you have two primary jobs:
- Find and acquire the best talent possible for what you can spend, and
- Retain the best-performing talent for what you can spend.
It was one of the challenges that I faced in my last company. We tried to make working with us fun for the developers. We
- Pay 75th percentile salaries
- Offer a “Cadillac” healthcare plan
- Give 4 weeks of vacation from the first day
- Provide 10% of work time for exploratory work
- Provide phantom equity
BTW, if you’re a developer who is good with big data and search, they’re hiring!
One of the mistakes that I made in determining a benefits package was assuming that if we paid our team members well and gave them good health benefits, they’d be well set up for taking care of themselves financially.
It’s a common mentality. Employers, who want their employees to be happy and taken care of, assume that there’s a fine line between work and private life and money issues are beyond that line. Pay them, but the employer doesn’t really have any business dealing with what happens once the paychecks are issued.
In a sense, that’s the correct approach. As an employer, you don’t want to tell your employees whether or not they can go out to that restaurant on Friday because it may or may not be in the budget.
Yet, employers feel that any financial decision that an employee makes is outside of the realm of what they should be concerned with, and this is the wrong approach.
If employees make poor decisions with their money, then they are going to have financial issues. Those financial issues will cause stress, and sometimes have other unwanted (from the point of view of an employer) repercussions, and will affect the at-work performance of those employees.
If you provide a 401k plan as an employer, you may think that those one hour per year “employee education” sessions fit the bill.
Educating your employees on asset allocation doesn’t do a thing for them if they don’t know how much they should be putting against their debts, how much they should be setting aside for college for their kids, and how much they need in insurance to take care of their families if something happens to them.
It scratches the wrong itch.