How Your Employer Can Make You Wealthy

Posted on 10. Jan, 2012 by in Business Wealth

Employment wealth

Many employers these days are interested in ways they can attract and keep employees, particularly good ones.  It is an expensive process to re-hire, train and lose valuable knowledge when someone decides to walk out the door, and as the saying goes; happy workers are productive workers.

Bigger private employers and Government departments tend to have more structure around staff incentives and support, but this doesn’t need to be limited to big business.  If you work for a small business (almost half of employed Australians in the private sector do), then there are still ways for you to benefit from employer support, but it could mean taking the initiative yourself.

Salary Sacrifice

This involves using pre-tax dollars to pay for certain things.  It doesn’t work in all situations and often has a lot to do with your taxable income, so it is worth doing your homework on this first.  If your employer offers salary sacrifice, find out what might apply, often it is things like:

  • Buying a laptop
  • Buying a car
  • Paying for parking
  • Paying for study
  • Contributing to your retirement fund

In some cases it is possible to pay for certain household rates and even your mortgage, but this does not apply in all cases.  Check out the taxation office for more information, then speak to the person responsible for payroll at your workplace to see if you can set something up.

Split Your Pay

This is a very simple way to enforce savings for people that aren’t very good at doing it themselves and I talk more about it in my free eBook.  Instead of setting up a direct debit yourself, you can ask your payroll person to divide your pay into 2 or more accounts.

If you don’t have ready access to these accounts and you don’t see the money, then it is easier to forget about it.  Think about using a system like this for additional home loan payments, savings, investing or a holiday account.  You might get a bit of reluctance from payroll to do it, but let them know them they only need to set it up the one time and how much it will help you too.

Health and Other Benefits

It may be possible for you to pay for health cover with pre-tax dollars via salary sacrifice, but if not your employer might like to look at arranging group health cover for employees (and their families) at a discounted rate.

If you think that your employer might be interested in supporting something like this, but doesn’t have to time to look into it, consider doing the research yourself.  If you can present a good business case you could make a nice saving for yourself and all of your work mates.

If this idea appeals to you and your employer, then there may be other group memberships you might like to try and leverage, like fitness centres or interest rate discounts from the institution that your employer banks with.

Flexible Hours

A lot of businesses these days don’t pay overtime, but working extra hours is often something that we have to do to get the job done.  If you find yourself working large amounts of overtime, or working weekends without reward, consider discussing alternative means of compensation with your employer.

Perhaps you could negotiate some flexible time that allows you to come in later, go home earlier or just work from home when you need to?  If your output doesn’t change, then there is a very good chance that you will be able to achieve this and improve your lifestyle at the same time (a very important part of your overall wealth).

Education and Training

Increasing your wealth isn’t just about getting an immediate pay rise, further education and training will increase your wealth of knowledge and can also increase your ability to earn more over time.

Training is often relegated to the bottom of a very long list of things to do in smaller enterprise, but it can be very beneficial for your personal development. Often the priorities for a business lie with training that is legislated (like licences or safety training), then everything else gets put on the back burner.

Some proactive employers will recognise the importance of up-skilling their workforce to increase their capacity, or to put measures in place for succession planning.  If your employer isn’t too great at developing their staff, you could try taking the initiative yourself.

There is a good chance that your boss won’t pay for scuba diving lessons if your job involves working at a computer all day long, but they might be interested in a marketing or business management skill set.  Further education can advantageous to both you and your employer, so spend some time thinking about skills that would help the business, but may also help you leverage your position at a later stage.

Does your employer offer you benefits in addition to pay that helps increase your wealth?

Image by RobethK

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34 Responses to “How Your Employer Can Make You Wealthy”

  1. Andrea @SoOverDebt

    10. Jan, 2012

    Very interesting to read about employee benefits outside the US – I’m always jealous! Unfortunately, in my career, I have never worked for a company that valued its employees enough to try to keep them. I’ve always seen an attitude of “if you don’t like the way we do things, we’ll just find someone else.” Given the recession, I guess companies can afford to take on that attitude because so many people are desperate for work.

    Reply to this comment
    • Shaun

      11. Jan, 2012

      Hey Andrea,

      Sounds terrible! Great to see you looking for a way out through blogging though. Even if they are a bad employer, look for ways to get more than just you salary (that doesn’t include stealing ;)).

      Reply to this comment
  2. Confession time. I am a Marxist PF blogger (only semi-joke) and doubt that any employer can make one wealthy. Most employers make profit by expropriating our surplus value which is commonly known as ‘exploitation’.

    I believe, though, that it is our duty to know all the perks that employers offer so we can take full advantage of these.

    Reply to this comment
  3. Shaun

    11. Jan, 2012

    Hey Maria,

    Yep, employers will absolutely take advantage of you, pay you less than what you are worth and charge you out for more. That is the game of business, but you can always play back. Knowing your rights and leveraging what is available to you is a great way to start. My goal is to learn everything I can, take advantage of the job security while I need it, then be my own boss instead.

    Reply to this comment
  4. YFS

    11. Jan, 2012

    Flex hours and Education and training. I’ve been offered jobs with 15-20% more pay and I will not take them because my job is ridiculously flexible. I work from home and I’m deliverable based.. My quality of life has improved so much.

    Reply to this comment
  5. Financial Samurai

    11. Jan, 2012

    My employer paid for 75% of my MBA grad school bill which was nice. Besides that, just the usual health care, insurance, and other benefits.

    S

    Reply to this comment
  6. Moneywisdomtips

    11. Jan, 2012

    You will never be rich more than you know.Nice work

    Reply to this comment
  7. Being a teacher is basically the ultimate in these little “extras” or perks. We have a union ran pension that is the envy the world, great holidays (which in my case leave plenty of time to start a side business), pay for school etc etc. I agree that people need to look at their entire compensation package when they look at potential jobs.

    Reply to this comment
    • Money Cactus

      12. Jan, 2012

      Teachers do get some great holiday time, those other perks are pretty handy too. I really like that you are using the time to further yourself, hope it all goes well.

      Reply to this comment
  8. People forget the value of employee benefits. Tuition reimbursement is probably one of the better benefits that can result in higher income and retirement benefits so it’s a great perk to take advantage of.

    Reply to this comment
    • Money Cactus

      12. Jan, 2012

      Furthering your education can definitely be a good way to increase your ability to earn. Employers often have access to government funding that individuals do not, which means that the training dollars don’t even have to come direct from your employer.

      Reply to this comment
  9. We have an amazing pension and health insurance package. I work for the government so you really can’t get much better. The premiums I pay are nothing for the coverage I get. This is a huge bonus and is one of the main reasons I stay working where I do.

    Reply to this comment
  10. The Jenny Pincher

    12. Jan, 2012

    The work from home thing was huge for me when I did it (before getting laid off). It completely changed my life.

    I think the split pay is an awesome suggestion because it lets you automate things (especially helpful for savings) so you just forget about it. Then you look at the account in a few months and it can be surprising how much it adds up!

    Reply to this comment
  11. UltimateSmartMoney

    12. Jan, 2012

    How about unlimited sick days up to 6 months? I never took advantage of this benefit though so it really does not make me wealthy. But if I get an injury, then I could take several months off if I decide to…

    Reply to this comment
    • Money Cactus

      12. Jan, 2012

      6 months, wow! I have flexible hours in my current job, but in the past I’ve used the odd sick day for a ‘mental health’ day instead.

      Reply to this comment
  12. Marissa @ Thirty Six Months

    12. Jan, 2012

    Mine offers to pay 75% of any university degree as long as it related to your current job, which is very nice. They also provide health, dental, car allowance and discounts on any of the services offered by the company. They also match 50% of any contributions made to the company stock plan.

    Reply to this comment
  13. Money Cactus

    12. Jan, 2012

    You don’t work with Sam do you? Ha! that is a great deal if you don’t mind the work I’d stick with it 🙂

    Reply to this comment
  14. 101 Centavos

    12. Jan, 2012

    My employer has a few bennies which are unusual, including the tuition thing and a special corporate-wide deal on new cars. Also a defined-benefit pension plan, which is becoming rarer and rarer in industry.
    Interesting term, “salary sacrifice”

    Reply to this comment
  15. In the UK you have to be careful of ‘taxable benefit’. For example if your employer supplies you with a car that you use for personal use, the taxman will have a field day. This all springs from the ’70s when there was supposed pay restraint (4% max increase a year) and employers and employees spent a lot of time circumventing it.

    Even now this hangs over us! I work from home and if I have to use the car for work, I just charge a non-profit car mileage allowance. This saves a lot of hassle (in fact I hardly ever drive anyway!).

    Reply to this comment
  16. Doctor Stock

    13. Jan, 2012

    I’ve seen it so many times… simple rewards, recognitions, appreciation, etc. trumping money. Lifestyle too is becoming an increasingly important aspect.

    Reply to this comment
  17. Dannielle @ Odd Cents

    13. Jan, 2012

    Sad to say, the benefits at my current job are not that great. I get the standard health and life insurance and they contribute a small percentage to a pension plan. Because I’m at the bottom of the food chain (as they like to say), I don’t get much more. Senior people in the company get cell phones, company cars and more vacation time.

    Reply to this comment
  18. Aaron Hung

    14. Jan, 2012

    My company pays hourly so my overtime is nice, it’s nice to know you get pay for extra work you do

    Reply to this comment
  19. American Debt Project

    14. Jan, 2012

    The company I work for now definitely has the best benefits I’ve ever had: completely paid health insurance (at least for the plan I chose), a 9/80 schedule, 3 weeks vacation, and lots of opportunities to attend educational events, seminars, and classes. I got 2 certifications through work which would have cost me over $2k otherwise. We can work paid overtime too, which has definitely helped me out. We also have a lot of flexibility and independence which I need to be happy in a job. My only complaint is that we don’t get any sick days (it’s part of the 3 weeks). Can’t win ’em all!

    Reply to this comment
  20. My employer’s education reimbursement program would essentially add 20% onto my salary. It’s a great benefit that I plan on using as often as possible. It’s a benefit you can take with you whereever you go.

    Reply to this comment
  21. Neo

    22. Jan, 2012

    These are good ideas! However, I certainly would not rely on my employer to help me get me wealthy. Yes, employers have an interesting in keeping you due to the factors you mentioned, but employers also have the right to fire you (unless you are in a special industry or union shop) as soon as it is deemed necessary to reduce costs. Therefore I would recommend using the ideas you mentioned but view them as as just a few of the many tools in your toolbox of wealth-generation. And also establish accounts/tools away from your employer as well.

    Reply to this comment
  22. Brett

    24. Feb, 2012

    Training is always useful, especially if you don’t have to pay for it!

    Work part time on your job, full time on your career 🙂

    Reply to this comment

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