Are Employee Benefit Plans Valuable?

Are Employee Benefit Plans Valuable?
Apr
26
Mon

You may be wondering if providing a comprehensive benefits package is worthwhile for you and your business. With all the time needed to pick and choose a plan, combined with the costs of providing for each employee, you may wonder if all the hassle is worth it in the end. 

Well, the short answer is yes! Employee benefit plans are incredibly valuable for both your employees and your business as a whole. Here we explain more about the value of employee benefits plans and why you should offer them to your employees.

The Value of Employee Benefit Plans for Your Employees

Consider this, according to Mployer Advisor, 75% of employees would rather be given new or better benefits instead of a wage increase. Benefits are more than just perks for your workers, they offer the stability that many workers can’t get if they are contract employees or work for themselves. Utilize the power of employee benefit plans to notice the following in your employees.

An increase in overall job satisfaction

It can be hard to stay motivated each and every day of the week. As an employee, it is all too easy to find yourself at a dead-end job, dreading the alarm clock every single morning. Not only is offering a comprehensive benefits package beneficial to bring candidates in the door, it can really go far in making them feel valued long after their onboarding process ends. And who doesn’t want a job that makes them feel fulfilled after the end of a long week of work?

An increase in focus and productivity

Employee benefits packages aren’t just perks that come with a job, they are stabilizing factors in an ever-stressful life. When an employee knows that the price of their medical care is subsidized, their retirement savings are growing, and they are able to be paid for their sick days, they won’t have to worry about these details at work. Once an employee feels secure in both their financial life and their work life, they can better focus on the work in front of them, and perform at a higher output level.

A boost in work morale

It is no secret that the COVID-19 pandemic has turned every single workplace on its head within this past year.  It can be exceptionally hard to boost employee morale when everyone has to connect behind a screen instead of in person, but a good way to bypass this is by offering employee benefits. Doing so lets your employees know that you care about their personal needs, especially in a global pandemic. Once an employee feels as if their needs are met, they won’t suffer from as much stress, which will go far in improving their morale at work. 

Remember, providing employee benefits is more than just offering your employees medical coverage and a life insurance plan. Instead, it is a testament to how much you care as an employer for your employee’s personal well-being and livelihood.

The Value That Employee Benefit Plans Can Bring Your Business Operations

While providing employee benefits is not a requirement unless your business has more than 50 employees, doing so can really make your business thrive. Here’s how:

An increase in employee loyalty and decrease in turnover 

Loyalty in the workforce goes both ways. In exchange for a work provided, an employer will offer benefits packages to provide incentive, security and convince a prospective employee to join their team. But in a world where it is easy to research competitive benefits packages online, an employer will have to provide and emphasize their impressive, all-inclusive benefits to meet their employee’s needs. When they do so, employees are more likely to be loyal to their employer because benefit packages prove that an employer cares. In fact, according to an Aflac study, 36% of employees report that improving their benefits package is the one thing an employer can do to retain them as employees.

Once an employee feels valued and trusted in their position, they will be more likely to stay at your business for years to come, which will increase productivity.

A healthier workforce leads to a healthier business

Employee benefits can help to care for both the mental and physical well-being of your employees. When your employees know that they will be compensated for sick days, they will be more likely to stay home when they are feeling under the weather. The same thing goes for employees who suffer from mental illness; if employees know that they can take adequate time off to tend to their emotional health, they will. As a result, you will notice a healthier workforce and in turn, a healthier business. 

Attract the top talent from day one

A business’s employee benefits package is one of the first things any prospective candidate will research before applying. If a business has a strong set of benefits, this will work in its favor to attract quality candidates while standing out as a differentiator from its competition. Any business will want to make sure that they are providing the best benefits possible as a way to ensure top talent is incentivized to join their team, or else they risk losing a great candidate. At the end of the day, a comprehensive employee benefits package makes any business more competitive, which is needed in today’s economy.

Benefits can create a tax advantage for your business

Providing employee benefits may be expensive, but these expenses are tax deductible as business expenses. If the business is listed as incorporated, the owner’s health insurance is also deductible as well. Business owners will be able to take advantage of this tax advantage, which can help to justify the expense. 

The Takeaway

While providing employee benefits plans can seem daunting and expensive, the value they bring to both your business as a whole and your employee’s livelihood makes them incredibly worthwhile. Simply put, employee benefits are an investment into an employee’s health, wellbeing and security and a business’s operations and productivity. 

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