Labor Day, Employee Respect, and Retention: More Than Just a Long Weekend

Every year we take the first Monday of September off work. For many, it’s a farewell to summer — one last moment in the sun before the days get shorter. But of course, Labor Day is more than just a long weekend. It’s a national holiday honoring the millions of working Americans whose time, effort, and skill keep our economy going.

The History of Labor Day

Labor Day also recognizes the gains workers have made in securing fair, safe, and humane working conditions. In the late 1800s, many workers toiled for 12 hours a day, 7 days a week, often in dangerous environments. Children worked alongside adults. And for poor and recently immigrated Americans, the workplace offered little protection or dignity.

Eventually, these laborers fought back — striking, rallying, and demanding change. On September 5, 1882, thousands marched in New York City’s first Labor Day Parade, demanding better pay, shorter hours, and basic rights. Their momentum grew, and in 1894, Labor Day became a national holiday.

While today’s workplace looks very different, Labor Day still reminds us that honoring employees means treating them with respect year-round.

Employee Retention: Show You Care, Keep Them There

The U.S. is currently experiencing a labor shortage, much of it triggered by pandemic disruptions. As a result, employers are under more pressure than ever to retain talent.

The IRS’s Employee Retention Credit offers tax incentives to employers who keep workers on payroll during challenging times. But financial credits aren’t the only reason to invest in retention — maintaining team culture, preserving institutional knowledge, and avoiding training costs are equally important.

One of the most powerful tools to support retention? Robust, modern benefits.

Work-Life Balance That Works

The 9–5, Monday–Friday model was built for a society that no longer exists. Today’s workforce includes dual-income households, single parents, caregivers, students, and entrepreneurs. Employers who offer flexibility help their teams thrive — and stay.

Options like:

Flextime
Compressed workweeks
Job sharing or redesign
Part-time or remote work

…help people meet both their professional and personal commitments. When employees feel seen and supported, they’re more likely to be productive, loyal, and less stressed.

Flexible arrangements can also benefit employers by providing support at unconventional hours and greater adaptability in scheduling.

Fringe Benefits: Small Perks, Big Payoff

Beyond salary and health insurance, a thoughtful mix of perks — also known as fringe benefits — can significantly improve job satisfaction. These include:

Childcare or elder care assistance
Tuition reimbursement
Paid time off and parental leave
Wellness programs
Gym or entertainment discounts
Emergency savings programs
Student loan repayment support
Remote work tech stipends

Many of these also come with tax benefits for employers and employees alike.

And they matter more than ever. As studies reveal, employees now value benefits that go beyond the basics — including financial wellness support and meaningful perks that improve quality of life at home and work.

Think Outside the Cubicle

Some benefits are inexpensive. Others cost more. But when measured against increased productivity, employee loyalty, and positive workplace culture, they’re well worth it.

What’s next? Possibly a national shift toward 4-day workweeks or a minimum wage increase. But you don’t have to wait for legislation to start building a better workplace now.

If you're an Austin-based business — or based anywhere, really — and want to explore creative, sustainable ways to support your team, we’d love to talk.

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DISCLAIMER: We are here to inform with real, non-biased financial education. This article is for educational (and entertainment) purposes only and does not constitute financial or investment advice. Contact us for personalized guidance.

Employee Benefits for a Modern Workforce