Labor Benefits To Consider For Your Heavy Equipment Workforce
It takes special people with distinct talents and abilities to operate and maintain heavy equipment. Therefore, it’s in the best interest for owners of businesses that utilize heavy equipment to offer a comprehensive benefits package that will attract the best of the best, keep them happy on the job, and retain them for a long time.
We recently assessed what benefits are highly attractive to heavy duty equipment operators and mechanics. Beyond standard benefits such as medical, dental, vision, and PTO, consider the perks to foster long-term employee wellbeing and satisfaction.
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Retirement Savings
Offering a retirement option such as a 401(k) plan your people can invest in is attractive to potential employees for a number of reasons, especially if you provide a match to what they add to it. You make Traditional IRA contributions with after-tax income, but you may be able to deduct them on your taxes, deferring payment until you withdraw the money at retirement. This can also potentially lower an employee’s tax liability by putting them in a lower tax bracket, depending on how much they put in and how close they are to the bracket border.
With a Roth IRA, contributions are taxed but are tax-free when withdrawing at retirement. This is especially helpful when the money is needed most in retirement. 401(k) assets are also protected from creditors under the Employee Retirement Income Security Act (ERISA). Some 401(k) plans may also allow contributors to borrow against their 401(k) savings in certain emergency situations.
Profit Sharing/Bonuses
Offering employees a share of company profits can significantly motivate them to perform well and meet or exceed contract deadlines. This is usually a bonus based on a predetermined percentage of money that the company makes quarterly or annually after expenses and taxes. Distribute bonuses as taxable lump sums or contribute them to tax-deferred retirement funds. Publicly traded companies can also offer stock options.
Company-wide profit sharing is typically more inclusive than other types of reward systems. With some performance-based bonus programs, there’s a risk of employees feeling slighted. However, bonuses based on longevity are effective because they are awarded purely on an employee’s seniority.
Paid Training
One excellent way to continue to build your internal pool of talent is to pay for heavy equipment training or licensing. This could include cross training on other types of equipment or increasing their knowledge about something else pertaining to your business. This not only helps employees feel more valuable, it also provides them a way to potentially increase their pay rate based on the level of skills they bring to the table.
In addition, it’s beneficial to the company if more than one person knows how to operate, or repair, each piece of equipment. For example, if one person is on vacation, out sick, or taking a personal day, someone else can fill in for them and the job remains on schedule. With that in your back pocket, you can also give employees additional PTO bonuses to help them have a better home/work balance.
Entertainment
Everyone loves a good office party. It’s a great way for people from different departments to meet if they don’t normally have day-to-day interactions. Employees can also use the opportunity to invite their spouses and significant others to be a part of your company culture, helping to boost morale. Most importantly, office events are an additional way to thank your employees for contributing to the success of your business.
Smaller companies may be able to do things more often and more spontaneously, such as occasionally hiring a local food truck and offering free lunch. Larger companies may have more logistical challenges to consider, such as budgeting for venue and catering expenses. You may also want to offer a night’s stay if using a hotel, especially if attendees consume alcoholic beverages on the premises.
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Building Your Business
Of course, there are tons of other programs and incentives you can offer to attract, build, and retain great talent. When you’re ready to build your fleet, check out this guide to attracting a skilled heavy equipment workforce.
This article is for informational purposes only and does not constitute financial, legal, or tax advice. Employers should consult with qualified professionals before implementing any benefits programs or retirement plans.
Barrett Baker
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