To give a bonus, or to not give a bonus?
As bonuses trend down, more employers are asking themselves this question. The negative spotlight that has been recently cast on executive compensation makes this understandable. But the choice to forgo bonuses would be less of a blow if that loss was being made up by long-term incentive awards. It’s not.
Instead, there’s an all or nothing approach. More and more companies are choosing not to offer bonuses. But those companies are not searching for alternative motivational tools.
The problem many have with awarding bonuses is not with the incentive value, but with the form in which they are given. Handing an executive $10,000, for instance, is losing traction among companies.
However, when bonuses are given in different forms, such as fully-paid parental leave or free Fridays, no one bats an eye. Instead they cheer! These types of alternative bonuses are gaining popularity because they cater to aspects of life that people find important.
So what about catering to their health, another invaluable aspect of life? With this question, in comes the issue of rising healthcare costs and protecting the company’s bottom line.
What we need is a health reward that will not only encourage high performance, but will also safeguard high performance; an incentive that works dually to reward and protect the executive and the company. A business expense that works as both a bonus and a return on investment.
What is it? An executive health plan. These kinds of plans will protect top talent from the high health risk they are exposed to, provide coverage toward their out-of-pocket health expenses, and save the company from the substantial monetary loss associated with an executive health disruption.
This kind of bonus will benefit not only the employee, but also their family, furthering the value and minimizing the potential for family-health-related distractions.
The cost of an executive health plan is also less than what you’d spend on a similar bonus. So, you spend less and receive more value to offer, all while safeguarding your company against health risk.
So, to give a bonus? Give them an alternative bonus in the form of an executive health plan.
Ready to Find One?
Ultimate Health is a supplemental medical expense and limited benefit group insurance policy designed as a bundled excepted benefit product. Discover the power of this compensation tool.