Employee turnover is a common problem for small business. Learn how helping create wealth opportunities for employees can improve retention.
Small business owners often see their employees as their greatest assets. One of the perks of owning a small business over a large corporation is that you get to know all of the wonderful people who work for you.
And because they do so much to help your business grow, you want to invest in them and their futures as well. Providing opportunities to build wealth can also improve employee turnover. Unfortunately, small businesses owners often believe that they don’t have the resources to help their employees create wealth. But is this correct?
Here are three examples of small business owners who found creative ways to help employees build wealth.
Give Employees Investment Opportunities
Arizona real estate developers Bruce Pomeroy and Andrew Skipper, co-CEOs of Evergreen Devco Inc., give employees an opportunity to invest in every new project. It’s a policy that could allow staffers to become millionaires by the time they retire.
Founded in 1974, Evergreen has only 54 employees. That doesn’t stop them from bringing in big revenue–for the company and its employees. In 2018, they had over $100 million in revenue, and they are projecting that 2019 will be an even bigger year.
Forbes recently included them on their list of “Small Giants–The Best Small Companies of 2019.” With revenues that big, the designation isn’t surprising. But it’s Evergreen’s investment in their employees that puts them over the top.
According to Forbes, whenever this real estate developer invests in a new project, they offer the investment opportunity to everyone on staff. Many employees are taking advantage, and the investments are helping them grow their retirement savings a great deal.
In addition, Evergreen offers their workers perks like profit-sharing and annual trips overseas, where they work to support struggling international communities. Skipper explained his company’s generosity to Forbes this way: “We want to reap the benefits of being in business long-term, and not take short-term profit.”
Because of Evergreen’s treatment of their workers, almost a third of the staff has worked there for ten years or more.
Offer a Stellar Benefits Package
Not every business has projects for employees to invest in. But you do have the option of offering your staff a benefits package that includes retirement savings.
Founded in 2012, OppLoans has fewer than 500 employees. They might not hold the “small business” designation for long though. Thanks to their investments in both their employees and their customers, they are growing at lightning speed.
They bill themselves as “The nation’s leading socially responsible lender.” Their goal is to help people in disadvantaged communities who don’t have access to traditional banking services. Unlike the payday lenders whom this population often go to for emergency funds, OppLoans strives to offer transparency and lower rates.
OppLoans’s employees have noticed that this caring attitude extends to them as well. In both 2018 and 2019, they were named one of the “Best Places to Work” by GlassDoor. One of the top reasons employees love working for OppLoans is the benefits package. They offer several health plan options, including one that is free to employees. They also give employees a free gym membership, subsidize their lunches, pay for life and disability insurance, and most importantly, offer great 401(K) matching.
The company matches employees’ investments up to 4% of their annual salary, and employees are 100% vested from day one. Experts estimate that the average cost of retirement is close to three-quarters of a million dollars, and people in high-cost areas will need more than $1 million to live comfortably. Yet the average American has less than $5,000 saved for retirement.
Help your employees build wealth for their future by offering a retirement savings plan.
Let Them Earn Equity in Your Business
Chief Outsiders employs a network of 65 CMOs-for-hire. A CMO, or chief marketing officer, is a C-level executive who is responsible for marketing the organization’s products and services to their customers, clients, or investors.
For companies that don’t have the resources or need for a full-time CMO, this company offers part-time or temporary consultants to do the job. This company has fewer than 70 employees, but they do a ton of business. Their revenues for 2018 were $13 million, and they’ve made the Inc. 5000 list for the last five years in a row.
One of the reasons that CMOs love working for Chief Outsiders is that they have the potential to grow professionally and financially. Every position at Chief Outsiders is partner-level. This means that employees have a long-term incentive plan that gives them the opportunity to earn equity in the firm.
Your employees do so much to help your business grow, so you want to invest in them and their futures as well. Even small businesses and startups can help their employees build wealth. Perhaps you can try one of these creative ideas to help your team grow financially too.
This article is intended only for informational purposes. It is not a substitute for legal consultation. While we attempt to keep the information covered timely and accurate, laws and regulations are subject to change.