Is now the time to act?
According to a new survey, that’s the question many employers have been asking themselves since tax reform came to town.
With the Tax Cuts and Jobs Act of 2017, the corporate rate has gone from 35 percent to 21 percent, generating unexpected capital for many companies, and new opportunities for using it. Of 300 companies recently surveyed by Pearl Meyer, about 20 percent have taken action with some sort of employee benefit; another 30 percent are considering it. Roughly half aren’t sure, many because they don’t expect the new codes to affect them.
The survey nods to the complicated times, and the question of how to respond to changing laws. High-profile overtures may be much in the news (in the last two months, just over 150 employers have made headlines with one-time payouts to employees). But are such headline-making actions short-term rewards, or long-term strategies?
Horizons Workforce Consulting’s Jennifer Vena, who will be conducting a survey of business leaders about their plans, says employers should approach this as they would any other decision: consider the goals you want to achieve and respond accordingly.
“To get the most out of it,” says Jennifer, whose study will provide insight about industry trends, “any reinvestment in the workforce will need to be intentionally created to improve the employee experience. Such actions will pay dividends far beyond the brand exposure.”