Holding your own: boost staff morale and retention through a variety of employee benefits.

Which benefits peak the interest of club employees today?

According to various club managers, there is no one answer, as each employee's interest and need varies according to factors such as age, marital status, health, and geographical location of the club.

What is common among benefits programs at clubs today? For many small businesses, benefit plans consist of group health, group life, dental insurance, paid vacation, and some form of retirement benefits ranging from profit sharing, annuity or 401(k) plan. To gain a perspective of what benefit packages are offered at clubs, we look to both NGF and NCA for their latest reports.

NGF's U.S. Golf Facility Employee Compensation Study analyzes insurance premiums paid by 18 hole facilities by job classification (General Manager, Controller, etc.) while the 2000 Club Compensation and Benefits Report produced by NCA analyzes premiums paid by both golf and country clubs and city/athletic clubs for employees, analyzing by senior staff, department heads, full-time and part-time staff.

NCA's report notes that golf/country clubs paid an average of $148,012 for health care premiums, annually, for employees and their dependents, while city/athletic clubs paid an average of $302,980 annually. With regard to full-time employees, 81 percent of the health care premiums were paid by golf and country clubs, and 89 percent of health care premiums by city/athletic clubs.

Golf/Country Clubs paid 75 percent of dental premiums for full-time employees and City/Athletic Clubs paid 83 percent. The report also mentioned other benefits such as disability coverage, both long and short-term (received by about one-third of full-time and professional staff of golf/country clubs and two-thirds at city/athletic clubs); life insurance (available to full-time and professional staff by 70 percent of golf/country clubs and received by 90 percent at city/athletic clubs), vision, employee assistance, and wellness programs.

To complement employer-contributed health, life, disability and dental plans, clubs are also providing an array of voluntary benefits as well as alternatives such as spending accounts. Voluntary benefits are 100 percent paid by employees and can supplement employer-contributed life and disability insurance packages allowing each employee to choose the benefit(s) the employee wants.

Recently, the cost of administering spending accounts has been greatly reduced, and clubs can access the administration of medical spending accounts and dependent care spending accounts at more affordable rates ranging from $3 to $10 per employee each month (monthly minimum fees may apply).

Medical Spending Accounts permit employees to put aside pre-tax dollars to fund medical, dental, and vision expenses not covered by the club's medical plan. Co-pay prescription costs and doctor visit co-pay charges are also covered under this account. NCA's report notes that Medical Spending accounts were offered by 6 percent of golf and country clubs.

Dependent Care Spending Accounts permit the usage of pre-tax dollars for child care and other dependent expenses, such as the cost of senior day care centers for a dependent parent, through payroll deductions. Both Medical Spending Accounts and Dependent Care Spending Accounts are advantageous to employees as they permit greater payroll deductions than opportunities than deductions currently allowed by IRS regulations.

Contributions to both types of accounts are deductible from an individual's federal gross earnings and are not subject to withholding, estimated taxes, or Social Security (FICA). Employer contributions to MSAs are excludable from gross income, and are not subject to withholding for income tax nor other employment levies such as Social Security and unemployment taxes.

Select states also allow contributions to be deducted from gross earnings. Dependent Care Spending Account can reimburse qualified dependent care expenses up to $5,000 per family, per year. While there is no mandatory dollar limit on the value of benefits allowed under a Medical Spending Account, most employers limit this figure to $2,000 per individual, per year.

The reason is that the employer assumes liability with a Medical Spending Account as the employee is permitted reimbursement from the sponsor up to the limit that the employee has pre-selected even if the amount exceeds deductions year to date. This liability is not present with regard to the Dependent Care Spending Accounts, as employees can only be reimbursed the portion that has been deducted from their pay at that point in time.

Bob Wyatt, General Manager of Tatnuck Country Club in Worcester, MA, champions the importance of a benefits package consisting of employer-contributed health care, life care and disability, and an array of voluntary benefits, but adds that many of his employees also value other benefits such as a clean, safe working environment, job security, and an interesting job. As Tatnuck's thirteen full-time, year round staff averages greater than ten years employment with Tatnuck, his staff also places large value on Tatnuck's vacation policy of "Three after Five".

David Porter, General Manager of White Manor in Malvern, PA, recently implemented change at White Manor with regard to the vacation policy. Employees who have been at the club for more than 15 years are now rewarded with four weeks paid vacation. Porter's full-time staff of 40 averages greater than eight years in employment with White Manor.

Kevin Keenan, General Manager of Lake Shore Country Club in Glencoe, IL, mentions Lake Shore's policy of personal days as a benefit offered in addition to vacation, sick days and holiday time that is valued by full-time employees.

What about benefits for part-time or seasonal employees -- an important segment to the club industry? Per the NCA report, golf and country clubs pay 11 percent of health premiums and 7 percent of dental for part-time employees, while city/athletic clubs pay 19 percent of health premiums and 20 percent of dental for part-time employees.

When asked how clubs attract repeat interest from part-time and seasonal employees, club managers mention that creativity counts! Alternatives cited include group discount programs such as discounted memberships to wholesale clubs, paid meal plans, and making the job fun and interesting through team events, as benefits that keep seasonal and part-time employees coming back.

At Chester Valley Golf Club, Malvern, PA, both full-time and part-time employees are eligible for three days paid bereavement, when a spouse, sibling, child, parent or in-law, maternal or paternal grandparent dies. Both Bill Mc Cue, General Manager of Chester Valley, and Wyatt cite team activities as instrumental in bringing back key part-time and seasonal employees year after year. Wyatt initiates employee vs. member competitions in the areas of softball and other team activities. Mc Cue offers team incentive plans and monthly employee newsletters that highlight the successes of each department.

Corporate buying programs are also cited as benefits that seasonal and part-time employees value. Chester Valley has negotiated a corporate rate at a nearby fitness center for its full time and part time employees. (To remind employees of the benefits that the club has worked hard to secure, Mc Cue includes a list of benefits offered in each employee's paycheck on a quarterly basis).

White Manor has negotiated discounts in the areas of wholesale club memberships and theme parks for its staff. Other benefits these general managers have been told are valued by part-time employees are the meal plans that all three clubs offer whereby an employee is given the opportunity to enjoy a meal and beverages per shift worked. Employees who are full-time students especially view this as a tremendous benefit.

Faced with the challenge of attracting employees in an area that lacks affordable housing, Lake Shore Country Club in Glencoe, IL, maintains an employee housing program that offers on site housing in a dormitory setting at a cost of $20 per bi-weekly paycheck to year-round and seasonal employees that take advantage of this benefit.

Lake Shore General Manager Kevin Keenan believes this is invaluable in attracting and keeping good employees, particularly seasonal employees. Lake Shore's payroll swells to more than 150 employees in peak season, from a base of 55 year-round employees.

To reward employees that are full-time students, Lake Shore contributes approximately $10,000 annually in scholarships to students who work a minimum of 24 weeks throughout the year or have worked a minimum of two seasons. Lake Shore has also been able to attract key talent by allowing use of the Club's facilities by full-time and seasonal employees during periods of low member utilization.

If you wish to learn more about benefit alternatives such as voluntary benefits, medical savings accounts, and comprehensive administrative tools available to your club's staff to administer and ensure communication with your employees, contact your club's independent agent and broker.