Employee Retention of Intuit -
April 12th, 2011
Intuit Inc. (NASDAQ: INTU) is an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals. It is incorporated in Delaware and headquartered in Mountain View, California.
The company was founded in 1983 by Scott Cook and Tom Proulx in Mountain View, California.
Intuit makes the personal finance programs Quicken and TurboTax (and its Canadian counterpart, QuickTax), as well as the small business accounting program QuickBooks. In addition, they produce QuickBooks Point of Sale solution for small retailers, professional tax solutions ProSeries and Lacerte, and the Web-based corporate workgroup productivity solution QuickBase.
The company maintains a number of foreign sales offices. It has R&D activity in Intuit Canada headquartered in Edmonton, Alberta and Intuit India headquartered in Bangalore, India. International product versions are now predominantly produced by third-party localizers or licensees.
As a small business owner, you wear all the hats. When business is on the increase and it’s time to hire, you lose no time consulting the HR department or higher-ups for approval. Though hiring can be rapid – a position can be filled in only a few days – you don’t want employee turnover rates to match. In the construction sector, the voluntary turnover rate is moderate, compared to retail, hospitality, and food services which are consistently high. Professional and business services traditionally enjoy low turnover numbers.
Here are some best-practice retention strategies to ensure your hires want to succeed with you.
Interview for the Future
Ask where the candidate sees him or herself in 5 or 10 years. Running his or her own business, or managing yours? A long term employee will come with a good track record of working for others. Be aware of job-hopping, which might signal that the candidate is only looking to build their own skills.
Bonuses and profit sharing are good strategies to maintain employee loyalty. If that big contract goes well, why not treat your employees? Pay them right away, not at the end of the year. A surprise bonus will inspire your workers to stay.
Time is tight, scheduling is a headache, but let your employees know you will reasonably accommodate their needs. Canada is a multi-cultural society with complex family arrangements. Recognition of an employee’s beliefs or domestic situation will foster loyalty. You win in the end: watch them put in overtime to finish off that big roofing job.
Become a Communicator
According to BCjobs.ca, employees of Canadian small businesses report that a good employer is one who:
Recognizes good performance
Offers constructive advice
Shares information: How’s the business doing? What changes lay ahead?
Clearly explains a job’s expectations
Asks employees what they think before making decisions
Good communication practices cost nothing to implement. Whether you’re running a major construction firm or a small contracting business, retaining employees has a sizeable financial impact.
Part of responding to employee needs is paying accurately and on time – every time. QuickBooks Payroll (for QuickBooks Pro or Premier) takes care of cheque processing, ROE management, T4s and more.
Low monthly fees
Our low monthly fees and low asset fees make the Intuit 401(k) the most affordable plan for a small business.
Most traditional 401(k) plans charge hidden asset fees that take a big percentage of the earnings from each account. Those hidden asset fees are usually the biggest cost for a 401(k). But they aren't listed on your monthly bill, so you may not be aware of how much they are costing you.
At the Intuit 401(k), our asset fees are much lower than the industry average.
And great tax savings
Business tax credits may offset your plan costs by up to $500/year for the first 3 years if this is your company’s first 401(k) plan.1
Plan expenses and contributions are tax-deductible.1
Plan participants can save up to $5,000 in federal income taxes.2
Standard fees for the Intuit 401(k)
Employer Pays These Fees Frequency Fee
Setup fee One-time $495
If you have 2–10 employees $75
If you have 11–25 employees $95
If you have 26–50 employees $125
If you have more than 50 employees $150
Employee Pays These Fees Frequency Fee
Participant fee Monthly $3 maximum, not to exceed 1% of participant’s annual balance
Fund fees Quarterly 0.44%-1.44%3
Fees that may apply
Employee Pays These Fees Fee
(withdrawals)What's this? $95 per distribution
LoansWhat's this? $90 annually for the life of the loan
Employer Pays These Fees Fee
Plan terminationWhat's this? $1,000 fee if the plan is terminated
Conversion feesWhat's this? $1,000 fee if a pre-existing 401(k) plan is converted into an Intuit 401(k)
Tax benefits and employee retention
For your business For you
Tax benefits for your business.
1. If this is your company’s first
401(k) plan, it may qualify for a tax credit of up to $500/year for the first three years of the plan2.
2. All employer contributions to employee accounts are tax-deductible. Tax benefits for you.
Taxes on participant contributions are deferred until distributed. This means if you personally contribute $16,500 to the plan, you may be eligible to save up to $5,0002 in federal personal income taxes.
Attract and retain employees.
A 401(k) plan has become a “must-have” benefit for recruiting and keeping employees. Ability to save the maximum.
No other type of retirement plan allows you save as much pretax income each year as a 401(k) plan ($16,500 for 2010, or $22,000 if age 50 or older).
"It's the People…" That is one of the key company values at Intuit (the makers of TurboTax, Quicken and QuickBooks). Today, as the country's most admired software company and consistently one of the 100 best places to work, according to Fortune Magazine's 2007 list of "Best Companies to Work for", between annual employee surveys, Intuit uses Inquisite Survey to assess the engagement of its workforce.
Employee engagement is more important today than it has ever been. It fuels innovation, results in positive customer experiences and boosts retention and satisfaction. Research from the Gallup organization shows that only one-third of American workers are "engaged" in their work, while the remaining two-thirds are either "disengaged" or "actively disengaged" and estimates of lost productivity as a result are in the billions of dollars.
Intuit is a Fortune Most Admired Company because it embraces employee engagement as a core driver of its success. Intuit's "Employee Value Proposition" is a commitment to its people that defines what employees can expect from their leaders. It focuses on the ingredients for an engaged workforce: meaningful work, direct feedback, investment in growth, and a positive work environment. According to Workforce Research program manager Phil Warden, "Measuring the engagement of our employees is a year-round process that goes beyond any single survey. We encourage an ongoing dialogue about the employee experience."