Plus with some of the new 401k providers being very low cost, it effectively becomes a maximum of a 4% increase in salary costs.
I use guideline.com over here. Cheap, good, low cost mutual funds, etc. On Sun, Jan 28, 2024, 8:17 PM Ken Hohhof <khoh...@kwom.com> wrote: > True. > > > > 1976-1988 were my Rockwell years. Back then, benefits were key to hiring > and retention, and the big 3 were (1) 401K match, (2) “cafeteria” health > insurance, and (3) tuition reimbursement. > > > > My recollection is they matched 401K contributions dollar-for-dollar up to > 3% of income. That’s a no-brainer, basically free money, and a way for the > company to incent people to put some money away tax-deferred for retirement > rather than assuming they can live on Social Security alone. But not > entirely altruistic, I believe that was a safe harbor to avoid a test > whether too much of the tax benefit was going to higher earners, managers > and owners. > > > > But that was long, long ago. > > > > Oh, and tuition reimbursement was interesting. If I remember right, you > got 100% for an A, 75% for a B, 50% for a C, and zilch for a D or F. > > > > *From:* AF <af-boun...@af.afmug.com> *On Behalf Of *Robert > *Sent:* Sunday, January 28, 2024 8:14 PM > *To:* af@af.afmug.com > *Subject:* Re: [AFMUG] compensation for employees > > > > People don't always know what is best for them. But fully funding an IRA > would be a way to funnel money to them without taxes that might be > appreciated when they do their taxes.. > > On 1/28/24 6:09 PM, Chuck McCown via AF wrote: > > I would be a bit surprised if anyone that works on my shop floor would > prefer that. We only have 25 employees and they are mostly welders etc. I > wonder if any of them even have an IRA. > > > > > > > > *From:* Robert > > *Sent:* Sunday, January 28, 2024 7:53 PM > > *To:* af@af.afmug.com > > *Subject:* Re: [AFMUG] compensation for employees > > > > Fully fund IRAs? > > On 1/28/24 5:18 PM, Chuck McCown via AF wrote: > > Thanks Ken, > > No stock options. I am slowly giving the company to a couple sons that > are putting in the sweat equity. Still not sure about production based > bonuses. Should everyone get the same amount? > > > > > > > > *From:* Ken Hohhof > > *Sent:* Sunday, January 28, 2024 1:11 PM > > *To:* 'AnimalFarm Microwave Users Group' > > *Subject:* Re: [AFMUG] compensation for employees > > > > I worked for big companies in the 80’s and remember profit sharing and > Christmas bonuses. Then we had a period of startups with stock options as > a huge part of compensation – the idea was you worked 80 hour weeks for > modest pay but if the company hit it big your options could be worth a > lot. I suspect some people hit the jackpot and a lot more got the shaft. > > > > My sense is that employees today are mostly focused on the short term. > They have bills to pay, they want to know what income they can count on, > they probably don’t want to roll the dice on profit sharing or a bonus or > stock options. Also, Millennials and Gen XYZ I talk to seem to view > employment as transactional, and they don’t necessarily identify with the > company or the owners (thanks to companies like Amazon and owners like > Bezos). > > > > So while I don’t have any hard facts, my guess is you’re doing the right > thing already. If you’re inclined to tie compensation to company > performance, I wouldn’t make it a large percentage, and I wouldn’t try to > use it as an incentive for people to work insane hours or achieve > impossible goals (like Elon Musk’s “extremely hardcore”). And I’d make it > fairly short term, like monthly or something, so employees aren’t making > their families scrimp in hopes of a windfall at the end of the quarter or > year. > > > > If you do experience hard times, reduced hours might be a temporary > solution at least for hourly employees. Realizing that with low > unemployment, some of them might move elsewhere. > > > > The good news is that any part of your business tied to fiber projects is > likely to have at least 5 good years coming. > > > > *From:* AF mailto:af-boun...@af.afmug.com <af-boun...@af.afmug.com> *On > Behalf Of *Chuck McCown via AF > *Sent:* Sunday, January 28, 2024 12:16 PM > *To:* af@af.afmug.com > *Cc:* ch...@go-mtc.com > *Subject:* [AFMUG] compensation for employees > > > > My latest pivot a couple of years ago to microtrenching blades, adding > grout machines, then microtrenching saw attachments and now to a > specialized type of vacuum excavator has gone extremely well. Almost no > software involved. Just a little in a motion control PCB in the grout > machine to control the hydrostatic transmission. This is by far my most > profitable season I have ever had in 50 years of running some kind of > hustle. And those years of the stinger and other related antennas and > hardware were not bad at all. I am a bit more confident that these new > “durable products” have more legs than the antennas that were radio > specific. > > > > But having been through wax and wane of business, economy and product > cycles for many decades, I am always reticent to ratchet up pay. I do give > bonuses. I will always live in fear of not meeting payroll. Only happened > once about 30 years ago, but that is a bad deal. And actually nobody was > unpaid but I had to layoff everyone. But I digress. > > > > What would y’all suggest as a way to reward employees when things are > going well? I give COLA plus modest merit increases every 6 months. I > could give substantial merit increases but that plays into my phobia of > things getting tight again. Maybe that is totally unfounded. I know when > things started going well for Henry Ford he doubled pay and things got even > better for him. > > > > I would like to do bonuses based on my bottom line income (I think), but > how to distribute that evenly? Should everyone get the same amount? And > how to relate that the size of the bonus is tied directly to how well the > company is doing? Or should I just give really nice raises this go > around? Or both? I guess if things slow down we can always trim staff or > let attrition do it for us. I think you all can understand the reluctance > to give raises as it is a one way street. You really cannot cut pay. > > > > I want employees to prosper and do better personally. I wonder if my > fears are justified. I know some of you have worked for large companies at > certain points in your life, how did they accomplish this. I know some of > you have really prospered with your WISP/ISP, curious how you approached > the whole sharing the wealth thing. > > > > > > Chuck McCown > McCown Technology Corporation > 8401 N Commerce Dr > Lake Point, Utah 84074 > 801-250-9503 > 435-830-4306 cell > www.mccowntech.com > www.microtrench-blades.com > www.terabitnetworks.com > ------------------------------ > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > > > > ------------------------------ > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > > > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com >
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