Providing top-quality benefits to employees definitely impacts a company’s bottom line – but the question is, does it have a positive or a negative result? Providing health insurance is becoming more and more expensive; training programs, on-site daycare centers and contributions to retirement programs can drain resources in the short run. However, many managers believe that offering an exceptional benefits package more than pays for itself over the long-term.
Nevada Business Journal invited companies across the state to apply online to be included in this year’s Best Companies to Work For article, filling out a standard form asking about employee benefit programs. All entries received were given to our three judges, who made the final decision on ranking the top companies.
Good benefits can often offset salary considerations, according to Mark Keays, one of our judges. He pointed out, “Young parents may find on-site child care so valuable that they’re willing to work for less money in order to have that benefit. And I’m sure we all know folks – especially older people or those with health issues – who work at a low-paying job because they need health insurance.”
Training is an important component of any benefits package. According to judge Chuck Stafford, “Training not only ensures people can do their jobs properly, but it also teaches skills they’ll need to move up in the organization. The prospect of reaching a higher, better-paying position is a powerful incentive to stay with the company.”
Concerns for employees’ health were also cited by the judges as reasons for giving companies high marks. Judge Brian Higgins remarked, “I gave high marks to companies who provided services such as an on-site workout room, reimbursement for health club fees or a company wellness program. Flex time and daycare are also important in reducing stress and keeping people satisfied. An employee who is fit and worry-free has more self-confidence on the job and can work extra hours if needed, while someone who is out of shape and stressed out is likely to fall apart under pressure.”
Recognition of achievements, whether in the form of an employee-of-the-month award or a yearly performance bonus, is important in keeping employees happy. “Companies that provide a means to give employees a ‘pat on the back’ for a job well done, and that hand out performance bonuses for achieving goals, will have a much better chance of retaining quality employees,” said Stafford.
Keays pointed out the high cost of turnover: “It has been estimated that it costs about one and a half times the annual salary to replace a middle-management person, when you account for lost productivity, costs involved with recruiting and the expense of training the new person. Looked at that way, it makes sense to spend a little more on benefits to keep that person happy in his or her position.”
“The real bottom line is that benefits are a great investment,” states Higgins. “Too many employers tend to be ‘penny wise and pound foolish’ by looking at the money they’re spending on benefits and how it’s affecting their bottom line today. They need to take a more long-term view and realize that benefits pay off in higher productivity and lower turnover.”
Congratulations to all the Nevada companies recognized.
CENTRA Properties/CENTRA Construction
Jim Stuart, Co-Founder
Las Vegas, 28 employees
“We recognize the value of mental wellness, family life and work, in that order. Someone whose personal life is full of trouble and stress can’t be a great, productive employee. At the end of the day, life balance is important,” said Jim Stuart, co-founder of CENTRA properties, a commercial real estate development firm, and its affiliated company, CENTRA construction.
CENTRA management believes stress relief can be accomplished by mental and physical wellness. It provides healthy dining at no cost and a massage therapist comes by one day a month. “It’s not as simple as offering amenities. It has to be incorporated into your corporate culture,” stated Stuart. “My entire accounting department may suddenly disappear for an hour in the afternoon to take a yoga or Pilates class in the gym, so I have to be prepared for that. Offering benefits can come at the expense of productivity in the short run.”
The company’s on-site gym is equipped with free weights, cardio fitness equipment, shower and locker room. CENTRA employs a certified personal trainer and also a nutritionist who prepares a healthy breakfast, lunch and mid-afternoon snack for everyone from senior vice presidents to guests. The company also provides health insurance for its employees’ families at no charge.
The company encourages employees to put family first by using flex time. Stuart said it’s not uncommon for someone to leave in the middle of the day to attend a child’s school event, but he said these benefits result in people becoming more responsible and more dedicated, developing a sense of loyalty, support and commitment. “They develop a sense of community in which they all care about, trust and respect one another,” said Stuart. “People tend not to take unfair advantage of flex time, because they don’t want to put an unfair burden on the company or their co-workers.”
Stuart said, “Since the company started four years ago, only one person has quit. After seeing what the competition had to offer, that person came back less than a month later and asked to be re-hired.”
Ethel M Chocolates
John Haugh, President
Henderson, 250 full-time employees and 240 part-time employees
Ethel M Chocolates is based in Southern Nevada, where it operates a factory in Henderson that produces gourmet candy, the M&M’s World attraction on the Las Vegas Strip and several retail stores. It also owns retail stores in Reno, Virginia and Hawaii. The factory opened in 1981, and John Haugh, president of the company, said “dozens” of the employees who were there at the beginning are still with Ethel M, and about 10 percent of employees have been with the company close to 20 years.
To learn about their products, every employee goes through Chocolate School and each member of the office staff works on the factory floor at least one day a month. At M&M’s World, associates are involved in learning the technology and the history of that product, so they can share their knowledge and enthusiasm with visitors. Veteran employees are also encouraged to share their knowledge with new people and mentor them.
“Having great associates who are committed to your business provides the right foundation for success,” noted Haugh. “The benefits are powerful recruiting tools, but sometimes employees don’t realize how great it is here until they’ve been employed awhile. Once that sinks in, they really appreciate it and the benefits package becomes a powerful retention tool.”
Ethel M offers performance bonuses, provides health insurance to the employee’s family at no charge, has an in-office gym, flexible time off and events celebrating team successes. Plus the unique benefit of a 40 percent discount on products produced at the factory.
The retail sector is notorious for having high employee turnover rates, but Haugh said turnover at the Ethel M stores is about half the industry average. The company’s manufacturing and office personnel have turnover in the single digits.
“We love what we do, we work hard and have a lot of fun doing it,” said Haugh. “Our job is to bring smiles to people’s faces, and we want our associates to recognize that and not just punch in and punch out.”
McCarthy Construction
Randy Highland, President, Nevada Division
Henderson, 20 employees
McCarthy, a national general contracting firm, attracts top talent by offering what Randy Highland, the president of the Nevada division, referred to as a “best-in-class” benefits program. Competition for skilled workers in the booming Southern Nevada construction industry is intense, and Highland remarked that rival companies are contacting his employees every day, trying to lure them away. “Training costs to replace people are huge, and it costs us in the six figures to replace a mid-level manager,” said Highland. “It is important to use top-of-the-line benefits to attract and keep top-of-the-line employees.”
The company reviews its turnover rates every year; McCarthy has maintained its voluntary turnover rate at 7 percent, while the building industry as a whole has an average turnover of 10 percent. Employees who resign go through an exit interview to enable the corporation to learn how to better suit employees’ needs.
The corporation is 100 percent employee-owned, based upon its Employee Stock Option (ESOP) program. “People’s attitudes change when they realize that what they do affects not only the company’s bottom line, but their own personal bottom line,” said Highland. “Accountability goes way up, and everyone is looking to see what needs to be done and doing whatever it takes to make it happen.”
The rising cost of health insurance has caused many companies to shift more of the burden of insurance premiums to employees. “We made a conscious decision not to do that, since our employees are also our owners,” said Highland. The company pays 87 percent of employees’ health insurance, which is above industry norms.
McCarthy contributes a total of 9 percent of an employee’s base salary to a retirement program, divided between a 401(k) program and the ESOP, and every employee receives a yearly bonus.
Highland said, “McCarthy started out as a family-owned company, and we try to continue that spirit. Taking the time to talk to people – asking about their lives, their families, their career goals – is always time well spent. In the end, we are just looking for more people to be happy.”
Oakview Construction
Robert Leidig Jr., Regional Director
Las Vegas, 15 employees
Oakview Construction, founded in 1962, is a general contracting firm licensed in 48 states, including Nevada, where its Las Vegas office was established seven years ago. Recently, it has provided pre-construction services for several high-rise projects in Southern Nevada, including consulting on the local market and assistance with budgeting.
Oakview offers training for employees, especially in construction-related software programs, because of the need to keep up with ever-changing technology. “We also emphasize the importance of training in safety,” said Robert Leidig Jr., regional director for Nevada, who said investing in safety training pays dividends in fewer lost workdays and lower worker’s comp premiums.
Offering such options as flex time, job-sharing and tuition reimbursement allows Oakview to attract and retain the skilled workers it needs to keep up with the rapid pace of construction work in Southern Nevada. It can also call on employees in other Oakview offices when extra help is needed.
The company sponsors an annual event honoring employees for length of service, and Leidig said several of his staff members have worked for the company for 10 to 15 years, having transferred to Nevada from Oakview offices in other states. It also presents awards to superintendents for achieving safety goals.
“The lifeblood of a company is its employees. If you don’t have state-of-the-art benefits, you can’t complete in hiring in today’s tight labor market, especially in the construction industry,” said Leidig. “Being competitive with salary and benefits helps you recruit the best of the best.”
As an employee-owned company, Oakview offers profit-sharing and performance bonuses. It also provides matching funds for employees’ 401(k) retirement programs. While it doesn’t have on-site daycare, it does offer assistance with daycare expenses. “We take a slow-growth approach and take our time hiring the best people. Our benefits package helps prop up that program,” said Leidig.
Stanley Consultants, Inc.
David Frohnen, Vice President/Manager of Las Vegas Office
Las Vegas, 82 employees; Mojave County, Ariz., 8 employees
“Las Vegas is growing so fast that competing for staff is a major challenge. Three years ago, our local office had a little more than 30 people, and now it has 90. Benefits such as family health insurance at no charge definitely help with recruiting and retention,” said David Frohnen, vice president and manager of the engineering consulting firm in Las Vegas.
“We like to think we encourage a better-than-average balance between home and work,” said Frohnen. Start times every morning can flex from 7 am to 9 am, and employees have the option of working nine hours each day instead of eight, and then taking off every other Friday. This program has been so successful that Frohnen said his competitors are copying it. He pointed out that employees’ focus improves when they aren’t worrying about how to get to a doctor appointment or whether they can attend their child’s school event. They can concentrate better on their work and their attitude improves.
The company is owned by its employees, giving them opportunities for profit-sharing not available in most companies. Thirty-five percent of Stanley’s after-tax profits go back to employees in the form of profit-sharing, and the rest is invested back into the company. Diversity in work assignments is another benefit. Because Stanley Consultants is an international company with many offices, employees can request short-term assignments in other cities, or even overseas.
“In engineering, it’s not uncommon for turnover to exceed 20 percent, but our rate is less than 10 percent,” said Frohnen. The average tenure at Stanley’s U.S. offices is 15 years. The Las Vegas branch, which opened in 1993, has several people who have been with the company for approximately 10 years.
“Our benefits are set up for the long term, and it has paid off,” said Frohnen. “We’re not constantly training new people. And, because our employees stay long enough to develop expertise, our clients benefit from that and appreciate it.”
Ticor is a division of Fidelity National Financial, the largest title insurer in the U.S. It offers a 401(k) program matched 50 percent by the employer and a stock purchase program matched 33.3 percent, profit sharing, performance bonuses and training programs. “We have a hands-on management team, and stress that each person is essential to the company’s success,” said Diana Steiner, president and state manager of Ticor Title in Nevada.
Ticor management spends a lot of time and effort getting buy-in from employees on the company’s mission and goals, according to Steiner. Each day, everyone receives an email with a “thought for the day,” all employees have a frame on their desks to hold the month’s official motivational quote, and everyone receives a monthly gift to instill inspiration. In February, the company holds a rally (not a meeting) at which mid-year and annual goals are reviewed. “We want to make sure that everyone’s attention is on the same goal,” said Steiner.
The nature of the title business, with its constant deadlines and the need for near-perfect accuracy, requires a particular personality type, said Steiner, who admits there’s a lot of turnover at entry-level positions, as those who find they aren’t suited to the job move on to something else. Once this vetting process is over, Steiner said the company’s retention is good, and most of the escrow officers have been with the company for several years. “We have to do very little recruiting,” she said. “If we have an opening, word gets around quickly and people will jump from other companies to come here.”
Steiner stressed the importance of receiving feedback from employees on their level of satisfaction. “We won’t give up on someone because he or she isn’t a good fit with the team they’re on,” she said. “We’ll make the effort to move them around within the company until they reach a spot where they’re happy.”
Washoe Medical Center
Jim Miller, CEO and President
Reno, 4,500 employees
“We feel that benefits are not the primary motivator for our employees; because of our mission, doing meaningful work is the No. 1 priority,” said Jim Miller, CEO and president of Washoe Medical Center, a full-service hospital in Reno. Miller does admit, however, that offering a good benefits package allows Washoe Med compete for healthcare professionals when recruiting and keep them from being lured away by others. He pointed out that Washoe Med recruits all over the country, so its programs must be competitive, not only with local facilities, but also with healthcare companies across the U.S. He said the hospital has enjoyed a substantial improvement in retention numbers over the last several years.
The medical center offers an on-site fitness center, free massages and a workplace wellness program to support the health of its employees. It also provides on-site daycare, a 401(k) program with matching funds, flex time, job-sharing options and performance bonuses.
Like many segments of the economy, healthcare is facing an aging workforce, especially among nurses. Miller said, “Every employer has to look at the different generations of workers, listen and learn what benefits are important to them. We offer a lot of choices in benefits to fit a variety of lifestyles.”
Miller pointed out that employees don’t look at the organization as a whole; their daily life is regulated by the work group they are in, and by that group’s supervisor. Washoe Med surveys its work groups twice a year to assess employee satisfaction and makes plans to help each group improve the work environment for its members.
The company’s recognition programs support excellence in work as well as length of service. Miller said, “We offer broad recognition for our staff’s broad talent base. Our employees offer excellent quality of patient care, and they deserve to be rewarded.”
What Makes a “Best” Employer?
Three of the seven companies chosen as offering the best benefits are employee-owned (McCarthy Construction, Oakview Construction and Stanley Consultants). This gives them an extra edge in providing benefits such as profit-sharing. However, the other companies, with shareholders or private owners watching their bottom lines, have also recognized that offering an exceptional benefits package is good for both employers and employees. Given the shortage of skilled workers in today’s marketplace, and the changing demographics in the near future as baby boomers reach retirement age, it makes sense to focus on hiring great people now, training them to become better, and assuring their continued loyalty by offering better benefits than the competition.
