6 Benefits of Employee Retention Tax Credit

The expense and time involved in hiring, training, and onboarding new employees can be daunting for any small business. Then once you have hired all these new people, keeping them around is another challenge! A recent study by the Society of Human Resources Management revealed that employee retention is a top concern for HR professionals at small businesses put it simply: If your company has high turnover rates, it costs you more money than you’d like to have to spend on continually hiring and training new employees. Fortunately there are several things you can do as an employer that will not only help you retain your current employees but also make it easier to hire new ones in the future.

This article looks at 6 employee retention tax credits that can help reduce costs and make retaining staff members easier.

Paid leave

When employees first start working for you, it’s important to incorporate a paid vacation policy from the start. The American Society of Human Resources Professionals recommends that employees receive at least two weeks of paid vacation time each year. This policy can help you retain staff more easily, as well as reduce the cost of hiring new staff. When you implement paid time off, you are actually doing two things: • You are benefitting your employees by giving them a chance to relax and recharge. • You are benefitting yourself as an employer by reducing your staff turnover and therefore reducing your hiring costs. In addition to vacation time, a number of businesses are also now offering paid parental leave. This is a great way to keep more women (who make up a large percentage of your employees) on staff.

Retention bonuses

Retention bonuses are one of the oldest and most popular ways to keep good employees in the fold. A bonus is an extra amount of money that you pay to your employees for a job well done, extra effort, or to keep them on board during a tough time. Retention bonuses are generally paid to existing employees as a way of rewarding them for their work and helping to keep them on staff.

Internal training

You can help to lower turnover and keep your employees happy by offering training that helps them grow and advance in their fields. This can be something as simple as having a weekly one-hour meeting where employees can ask questions and receive feedback. Employees who feel like they’re growing in their fields and getting better at their jobs are more likely to stay on staff.

External recruitment

If you have a high turnover rate, it may not be because your employees are unhappy. They may just not be the right fit for your company and position. To help you mitigate this problem, you can try advertising and interviewing external candidates. This can help you find the right people to hire, and also give current employees a chance to see that you are trying to hire new people. This might make them feel more secure in their jobs.

Tax-free holiday for new employees

Another way to help your business save money and reduce turnover rates is to provide a tax-free holiday for new employees. In many states, businesses with less than 10 employees are not required to give their employees a holiday on December 25. This is a great opportunity to offer a nice holiday gift to your new employees. Doing so might help you to keep your new hires on staff.

Conclusion

A healthy company culture can help reduce staff turnover by promoting employee satisfaction and engagement as well as health and wellness. With the help of these employee retention tax credits, you can make your workplace more attractive to current employees and easier for potential hires to say yes to your offer.