Benefits Attract Labor in a Tight Market

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Gehman outlines his benefit budget for 1998.

July 01, 1999

Gehman Custom Builder competes for employees not only with other remodeler, but also with several pharmaceutical companies and a large meat packing industry.

In a tough labor market, good benefits make all the difference, says Dennis Gehman. "If they’re not going to find them in the construction industry, they can go to a host of other places," he says. By offering benefits, Gehman allows employees to do what they enjoy as craftspeople and provide adequately for their families.

Benefit Budget for 1998

  • Health insurance: $31,409
  • Supplemental insurance: Employees pay for using pretax dollars through a Section 125 cafeteria plan.
  • 401(k)*: $12,000 (estimated) Company matches 25% of employees’ contributions up to 4% of gross wages.
  • Company vehicles: $42,692
  • Educational courses: $12,895
  • Uniforms: $6,199
  • Picnics/dinners: $11,123
  • Employee gifts: $1,390

*Began in 1999.

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