HR Experts Suggest Perks for Small Businesses
By Julie Fishman
Staff Writer
Reprinted from the Stamford Advocate
9/27/02
Running a business can be challenging
enough without the complexity and confusion surrounding employee management.
The task can be a daunting one, especially for people at small businesses
who don't have an extensive human resource background. Human resource
laws are constantly changing, the cost of employee benefits is on the
rise and the amount of documentation and administration can be overwhelming.
This is where David Lewis, Gary Piantedosi, and
David Ceponis hope to come to the rescue. The three men, with expertise
in human resources, benefits and financial planning, respectively,
led a seminar this week to dole out advice and offer simple explanations
for topics that frustrate managers.
The idea behind the seminar, which was held at bkm Total Office,
a furniture store in Stamford, was to help local business leaders
feel more in control of what typically is the most vulnerable area
for business, said Lewis, president of OperationsInc.com, an operational
and human resources consultancy in Stamford.
Lewis spoke to the group of 27 business leaders
about topics such as what to keep in employee's files, and what
should and shouldn't be published in employee handbooks. He also
reviewed some federal and state laws and the risks of noncompliance.Piantedosi,
managing partner of Creative Benefit Planning, a Stamford Consulting
and insurance brokerage firm, tackled one of the most frustrating
topics for small businesses - benefits and health insurance. "The area of benefits
for employees is extremely complex, fraught with minefields, and
typically one of the most costly for business," Piantedosi said. "Projected
increases are there, they are real and you have to deal with them."
One suggestion Piantedosi had was for employers to offer two health
plans. A business doesn't have to be large to offer two packages,
he said. The advantage to the employer is it can change to invest
in a less expensive plan, but still offer a comprehensive plan with
the caveat that worker have to pay more into it. In addition to saving
the business money, two plans also give employees a choice - something
that larger employers typically offer.
Another idea, he said, is to offer employees more
value-added benefits that cost businesses very little, such as flexible
spending accounts that allow workers to put away money on a pre-tax
basis to pay for things such as child care and commuting expenses.
Employers can improve their employee perks by sponsoring voluntary
benefits, such as group auto insurance. While the business sponsors
the plan, the employee uses his or her own money to pay for the benefit.
It doesn't cost the employer anything, and it provides workers group
benefits and favorable underwriting, he said.
Section 529 plans are one of the hottest new voluntary benefits,
said Ceponis, partner at Ceponis Financial Group, a financial planning
and investment advisory firm in Wilton.These plans offer employees
a tax-free savings option for college tuition expenses. This benefit
has wide employee's appeal, Ceponis said.
Section 529 allows the money people put into the
plan to grow tax-free. And when the money is used to pay for higher
education it is not subject to either state or federal income taxes,
he said. An employee can take the money out with no penalty if a
child receives a scholarship or the fund can be used on another child
or another family member, Ceponis said.
It's an ideal benefit for employees to sponsor because it is very
low cost and doesn't require administration, he said. And by accessing
the plan through an employer, a worker saves about one-third of the
cost if he were to purchase a plan. Because Section 529 plans are
relatively new, it's a benefit financial planners are just beginning
to market to businesses, Ceponis said."In a year or two, any business of any magnitude will use it as
a voluntary benefit," he said.
