At the beginning of each year, I notice so many articles focused on how to prepare for performance reviews and leverage your worth to ask for a raise. While those pieces are valuable, what’s far less common is reading about the substantial investments companies make in their employees behind the scenes. Aside from salaries and wages, employers are also writing checks for a long list of other costs that each team member requires year round.
When you initially landed your job, your employer probably would have loved to grant your preferred salary right away – that dreamy number you voiced, knowing from past experience it would likely be negotiated down to a compromised figure. After all, a happy employee makes for a happy workplace, right? But the truth is, if that lofty number wasn’t possible for the hiring manager to offer, it was likely due to a bundle of ongoing investments that companies make in their personnel.
Examining the types of investments your employer makes in its workforce says a lot about a company, and many employees aren’t aware of the total price tag on their employment. There’s a great article by CareerBuilder that lists some of the common costs companies incur to employ their workforce. Some of these expenses include:
- Insurance benefits (health, dental, life insurance)
- Payroll taxes
- Workers compensation insurance
- Bonuses, incentive payouts, sick days, vacations, paid holidays
- Office rental space (real estate costs and utilities, supplies and equipment)
- Tuition reimbursement
These days, companies also strive to stay competitive with wellness programs and other work perks that so many job seekers are looking for. Does your company offer a Friday social hour? Do they cater in food for a lunch-and-learn once a month? Maybe they host a bring-your-pet-to-work day. All of those things cost them either productivity time or money, most often both. But your employer knows that these types of benefits are worth it to ensure that you are finding a comfortable work-life balance that leaves you feeling satisfied and engaged.
So much goes into creating a satisfied workforce. So the next time you see your paycheck, remember that it’s only one part of the total investment your company happily makes to have you on their team.
Gauher Mohammad has been vice president of Doherty Staffing Solutions for the past nine years, responsible for the growth and operations of the company’s business in multiple regions. He is one of the founding members of the Minnesota Recruiting and Staffing Association and served as president for more than 15 years. In 2009, Mohammad received an Honorary Doctorate of Education Degree from Riverland College for his partnership with the school supporting education, vocational skill building, and creating scholarship programs. Born and raised in Pakistan, he arrived in the United Sates in the 1980s to pursue a business career. He is frequently asked to tell his story as a guest speaker at various business and community events.