It’s a well-known fact that providing benefits to employees is expensive, especially the smaller the business. The high costs, however, have a big payoff in the end. There are many reasons to offer benefits to employees.
- Follow the Law: The most important reason to offer benefits is simply that it’s the law. If a company has greater than 50 full-time employees, an employer is required to offer a health plan. Failing to do so will result in having to pay costly penalties.
- Increase Appeal: Today’s employment market is increasingly competitive which is forcing many companies to reconsider their stance on benefits. To attract and retain the best talent, offering a comprehensive and robust benefit package, including medical, vision, and dental benefits, will attract more job applicants. Add in retirement savings plans, paid vacation time, maternity/paternity leave, and a handful of other perks and a company can set themselves apart even further.
- Promote Employee Health and Overall Wellness: Strong health and wellness benefits help keep a workplace healthy and reduce absenteeism greatly. In turn, overall productivity increases as employees actually show up to work and feel better while they’re there.
- Boost Morale: Understanding and addressing the needs of a workforce is paramount in demonstrating that a company is dedicated and genuinely cares about their employees. Employees who feel that their employer values them will reciprocate that dedication in the form of productivity and loyalty. Offering a solid benefits package is a clear sign that a company cares.
- Minimize Turnover: At the very least, a good benefits package is enough to make an employee stick around for the long-term. Retaining veteran employees increases the overall talent level and is important when cultivating teamwork and a tight knit culture. Engaged and invested employees equal happy employees.
- Tax Advantages: Businesses do get the tax advantage of deducting their contributions to health plans, life insurance, and pension plans. While this obviously won’t offset the cost of offering health benefits, it does make the overall price tag seem less oppressive.
Whether it’s a small business just starting out, or a seasoned company that has been operating for years, the advantages of offering benefits far outweigh the risks. Need advice on getting started with employee benefits? Contact The Grigg Group today!