Attracting and retaining top veterinary talent requires more than traditional employee benefits like health insurance, a CE budget and paid time off. Today, team members value flexibility and personalization as they seek to align their benefits with their needs and life stages. One innovative approach is the concept of vending machine-style choices. Practice owners who provide team members with an allowance and a menu of selections ensure fairness while empowering individuals to choose the perks most meaningful and necessary to them.
Why to Consider It
Practice owners face the dual challenge of balancing budget constraints with the need to remain competitive in hiring and retaining everyone from veterinarians and practice managers to veterinary technicians and receptionists. A one-size-fits-all package might not address each employee’s diverse and evolving priorities. A customizable model:
- Promotes equity and inclusion: Everyone receives the same allowance and options, ensuring fairness while recognizing individual differences.
- Boosts engagement and retention: Employees who feel their needs are acknowledged and supported are likelier to stay and thrive.
- Aligns benefits with business goals: A flexible model allows a practice owner to tailor the offerings to the business’s long-term objectives and available resources.
- Enables concise budgeting: With a predefined allowance, the model simplifies forecasting and ensures that benefits spending remains predictable and within the budget.
How often have team members declined your veterinary practice’s health insurance plan and wished you could just pay them more? Tempting as it might be, mixing labor and fringe benefits is not a good idea.
A scenario: A veterinary assistant is hired midyear at $18 an hour. Since the employee does not want your insurance offering, you agree to pay her $2.50 more ($20.50 an hour). During open enrollment a year and a half later, she changes her mind and chooses health coverage. Do you reduce her pay? How will it play out? What are your state laws?
An allowance earmarked for a menu of options keeps fringe benefits and labor costs separate while allowing employees to satisfy their needs and obtain their compensation package’s full value.
Stocking Your Machine
A successful vending machine model starts with diverse and thoughtful choices. Beyond the traditional items, consider adding these creative options:
- Uniforms, equipment and supply stipend: Help employees invest in quality scrubs, supportive shoes, professional tools or equipment, and other resources that improve their work experience.
- Child care stipend: Provide relief for working parents juggling a family and career.
- Meals and entertainment stipend: Support dining or recreational activities that promote personal well-being.
- Commuter benefits: Assist with transportation costs, whether for public transit, parking or fuel.
- Technology stipend: Cover the cost of remote work necessities such as cellphone and internet service.
- Concierge services: Simplify a team member’s life with laundry, car wash or grocery delivery options.
- Well-being services: Pay for mental health resources, life coaching and stress-management tools.
- “Better You” benefits: Fund wellness and self-care services such as a personal stylist, vacations, gym memberships, spa treatments, or sports and hobby equipment.
- Financial consultations: Link employees with budget and financial planning professionals to help achieve short- and long-term goals.
- Paid sick time or caregiving support: Help employees pay for personal health needs or caregiving.
- Celebrations: Allow employees to observe birthdays, anniversaries and other personal milestones with paid hours or stipends.
- Charitable sponsorships: Fund employee-selected charities, school events or community projects.
Business Considerations
Implementing a vending machine benefits model requires thoughtful planning and alignment. Here’s what a practice owner should think about:
- Objectives: What are your long-term goals and those of your employees? Do you have the resources, equipment or money to support those goals?
- Honest budgeting: Understand what your veterinary practice can afford. Transparency about your financial capabilities is crucial in designing a sustainable program.
- Uniqueness and value: What special offerings can you provide that add value to the lives of team members? Consider the benefits that other practices might not offer so that you stand out in the hiring market.
- Customization: Identify which benefits are most valuable to job candidates and which are not. The decision allows you to maximize the impact of your offerings without overspending.
- Portioned benefits: Instead of lump sums, consider distributing perks in smaller, more frequent installments for better accessibility and perceived value.
- Nonmonetary perks: Not every benefit needs to cost money. Flexible scheduling, recognition programs and mentorship opportunities can be just as impactful.
How to Implement It
Rolling out a vending machine benefits program involves these steps:
- Ask your team: Start with an employee survey to determine appealing, desirable and valuable fringe benefits.
- Consult tax and legal advisers: Make sure your benefits program adheres to applicable state and federal employment laws, tax regulations, and reporting requirements. For example, some stipends might be considered taxable income, while others might not. Consult legal and tax professionals to structure your program appropriately and avoid potential liabilities.
- Develop partnerships: Collaborate with local or national vendors for products and services like child care, wellness programs, financial advising, travel planning and events.
- Communicate clearly: Educate your team about the benefits program and emphasize its personalization.
- Monitor and adjust: Regularly solicit feedback and update the benefits menu to keep it relevant and effective.
The ROI of Flexible Benefits
Investing in a vending machine benefits model pays off in numerous ways. Team members who feel heard and supported are more engaged, productive and loyal. Additionally, offering unique and personalized benefits enhances your reputation as an employer of choice, making recruitment easier in a competitive market.
The model also fosters a sense of autonomy and respect among employees. By allowing everyone to select the benefits that matter most, you demonstrate trust and understanding of individual circumstances. Your team members will appreciate being able to update their allocations as their needs change.
The Way of the Future?
In a time when personalization is paramount, veterinary business owners can lead the way with flexible and creative employee benefits. Are you ready to transform your benefits program into a tool for engagement, retention and innovation? A vending-style approach might be the key to empowering employees to prioritize their well-being while aligning with your business goals and budget. The result? A thriving team that feels valued, supported and ready to contribute to your practice’s success.
WISH LIST
According to a Forbes Advisor report, the most desired fringe benefits for remote workers are:
- Flexible hours
- Work-provided equipment
- Home office stipend
- Virtual team-bonding activities
- Internet assistance