Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://www.e-digitaleditions.com/i/1119718
SUMMER 2019 121 they have to for sanity purposes," Wand said. Raises, which average seven percent in food and beverage industries vs. three percent else- where, should also be built into a food maker's budget for deserving employees. Wand also cautioned that equity—which is currently offered by nine in 10 food companies in some form—is not a replacement for base salary. "You'd still need to sell the company for a lot of money in order for it to be worth something," he said. 4. When to offer a bonus. "Bonuses should do one of three things," said Wand. "It's got to incentivize your team, it definitely needs to boost morale and productivity, or it has to boost revenue for your business. Otherwise don't do it. Don't do it if it's going to kill morale or people aren't going to hit it." Wand cautioned that not obtaining a bonus due to unattainability can be particularly demo- tivating for sales people since bonuses comprise 30 to 50 percent of their annual compensation. "You need to be sure that you're setting goals that are attainable and make clear your expectations when people sign up with your company," he said. 5. The relocation expense question. Talent searches some- times span outside one's immediate market and relocation may be required for roles where it's important that employees live locally and report to your office every day. In such situations, companies should ensure that talent is not paying out of pocket to move to take a job, said Wand. But when making hiring decisions, a founder should consider if relocation is necessary. "On the sales side we had a conversation with someone who was traveling 60 percent of the time," Wand said. Is it even worth relocating someone like that who is almost always out of the mar- ket? Consider why you want an employee to be local, is it in line with the costs? And would a move be disruptive to the happiness of their family?" Julie Gallagher is managing editor of Specialty Food Magazine. "Those who are looking to work for a startup with less than 10 employees are looking for paid maternity leave, paid family leave, and free meals in the office," said Wand. "What was most important to managers and leaders in companies with more than $50 million in revenue was full health, dental, vision, and a 401k plan, which is really different." 2. Find a way to cover health insurance. About one-third (35 percent) of small companies surveyed indicated that they partially fund a medical insurance plan or private health care. Wand urged entrepreneurs to "think on a human level" when considering coverage options. "If you're an employee who works at a company that doesn't value your health and wellness, you may question if they value you as part of a team." One option is to reimburse an employee who qualifies for COBRA for up to 18 months because they were let go from a job that offered health insurance. Companies should also consider budgeting for healthcare coverage when raising capital, Wand said. 3. Benefits don't replace cash. While a range of benefits are important to job candidates, salary remains paramount not just to attracting talent but retaining it. That's not to say that employers need to go above fair market value, but they shouldn't go below it either, Wand said. "People need cash. Your employees probably aren't indepen- dently wealthy. If you have people who are so nervous and worried about paying their bills and they're committing their life to you and your business, chances are that when they get a knock on their door about something remotely better, they're going to take it because TOP 10 BENEFITS OFFERED BY SMALL COMPANIES* Paid maternity leave . . . . . . . . . . . . . . . . . . . . . . . . . 56% Paid family leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49% Free meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48% Dental insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43% Full or partial subsidy for cell phone . . . . . . . . . . 42% Paid paternity leave . . . . . . . . . . . . . . . . . . . . . . . . . 41% Offsite social opportunities and meetups . . . . . . 40% Bereavement leave . . . . . . . . . . . . . . . . . . . . . . . . . . 40% Flextime/Work-from-where-you-want . . . . . . . . . 39% Partially funded company medical insurance . . 35% *Companies with less than $50 million in revenue Source: ForceBrands Talent Report article bug 121 SUMMER 2019 specialty food maker