Advantages of Employee Benefits
1. Recruit and Retain Key Employees
Let’s face it. In today’s workforce Prospective employees ask about what benefits are offered before considering employment with your company. Are you losing out on top Employees ? Employees value – and expect – an employer to offer benefits. Often, employees will accept better benefits in lieu of a higher salary, which can be a way for smaller businesses to compete with larger employers. The idea here is that having an attractive employee benefits package helps get top candidates in the door and helps you retain them in the long-term.
2. A Healthy Workforce is a Productive Workforce
Employee benefits provide your workforce with tools to remain healthy and productive. Many Health carriers offer discounts if you promote heath programs within your company. This is an advantage for the business and employees.
For example, providing employees access to quality healthcare, and contributing to the cost, removes a big financial burden for employees and their families. Offering health benefits can also lead to fewer sick days and unplanned absenteeism. These are measurable returns on the business investment. Many employees my not seek treatment when sick if they can’t afford to go to the doctor. By offering a Flexible Spending Account (FSA) this offers a way for the employee to put money away Pre-taxed in case of an emergency in the future.
3. Promotes a Good Culture and Morale
As a small business owner, it is common to have close working relationships with your employees. As such, many small businesses want to take care of their employees by offering benefits. When it comes to culture and morale, employees feel this reciprocity. Knowing the business cares for their health and well being creates employee loyalty and contributes to a positive workplace culture.
4. Tax Advantages
Many employee benefits are tax-advantaged for both the business and employees. It’s not just contributions to healthcare and retirement plans that are tax-free. Several other types of employee benefits are tax-free including life insurance, tuition reimbursement, childcare reimbursement, cafeteria plans, employee discounts, personal use of a company owned vehicle, cell phones, and meals provided at the workplace.
5. Offering Benefits are the Foundation for Growth
A final advantage of employee benefits is they set the foundation to scale and grow. As you begin to hire more employees, having a unique and attractive employee benefits package helps your business attract, hire, and keep the best employees.