3 Ways to Improve Employee Satisfaction with Corporate Tax Savings

3 Ways to Improve Employee Satisfaction with Corporate Tax Savings

The Tax Cut and Jobs Act, passed in December, significantly reduced the corporate tax rate from 35 percent down to 21 percent, effective Jan. 1, 2018. Within weeks, large corporations made headlines for the plans they're implementing to invest the savings they'll see as a result of the tax cut. It quickly became very apparent that there was a common theme across all of these plans: investing in employees to boost recruitment, retention and overall satisfaction.

And who can blame them? With unemployment hovering around 4.5 percent,1 it’s definitely a candidate’s market right now, and employees feel a lot more freedom to jump ship than they did at the beginning of the decade.

Taking a cue from some of these companies, here are three ideas for how to invest the tax savings to improve employee satisfaction (and ultimately your bottom line) at your organization. 

1. Training & Development

Several studies have shown the benefits of investing in ongoing training programs, from higher productivity and profit margins to retaining top talent. In fact, seven in 10 people say job-related training and development opportunities impact their decision to stay with a company, according a survey by CED Magazine.2

Plus, if you're part of the 40 percent of American employers who say they cannot find workers with the skills they need,3 this type of investment can help you develop talent and fill those gaps faster in the future. 

2. Employee Benefits

Expanding employee benefits has certainly been a trend among the employers looking to convert the savings from the corporate tax cut into a tool to attract and retain top talent. This includes expanding retirement contributions along with voluntary benefits and financial wellness programs such as student loan repayment. 

The focus on financial wellness goes beyond just attraction and retention, though. Four out of five employers report that their employees’ personal financial issues are impacting their job performance.4 Investing in financial wellness programs can actually have a positive impact on productivity. With voluntary benefits that enable employees to build additional financial security in the face of the unexpected, you can help alleviate a lot of that stress, so employees can focus on giving their very best efforts to your organization.

Take a deeper dive on financial wellness benefit strategies in this on-demand webinar.  

3. Benefits Technology 

If you're going to expand your investment in employee benefits, you want to be sure you have the right technology in place to optimize that investment. This typically isn't an easy sell to CFOs, considering how they appreciate the efficiency of an all-one-one HCM or HRIS solution. But having the extra budget could give you the extra leverage you need to make a business case for a cloud-based, enterprise-grade benefits platform equipped with powerful data analytics tools to provide insight into how your benefit investments are performing.

Not to mention, simply expanding your benefits package doesn't do anything for your organization unless your employees understand the value behind it. With 80 percent of employees agreeing that a well-communicated benefits package would make them less likely to leave their jobs,5 having a benefits technology platform that enables you to not only target your message to specific groups, but also communicate across a variety of channels (think video on a mobile phone) would help ensure you're getting the right message, to the right people, at the right time. 

Watch this on-demand webcast to learn about how companies are expanding their benefits package to improve employee well-being and satisfaction, and ultimately drive positive business results.  

 

1. US Bureau of Labor Statistics

2. CED Magazine

3. McKinsey & Company

4. IFEBP

5. Aflac Workforces Report