Every employee likes to be recognized and know that excellent performance can lead to additional rewards. Often, this comes in the form of a raise in salary. In some cases, a raise isn’t always appropriate or possible. A Grooming Allowance (reimbursement for goods and services that enhance the employee’s appearance) can sometimes be a great alternative to a raise. Here’s why:
- It’s a guilt-free opportunity for the employee to spend money on things to boost their image (hair styling, manicures, clothing, etc.) rather than pay their utility bill.
- Novelty – this can be a nice surprise for the right employee at the right time.
- A well-groomed staff is a benefit to the practice.
- There is no payroll tax liability for the employee or the practice.
Check with your accountant for specific advice on this unique way to show appreciation for a job well-done.