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The Importance of Employee Benefits

12.15.2016

 Companies differentiate themselves from one another not so much by the salaries they offer, but by the extra benefits that come along with their paychecks. Experienced employees will always choose a job which offers a good benefits package, such as including: a retirement plan, life & health insurance, paid vacations, holidays, sick leave, dental plans, vision plans, and so on.

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If your company aims to build a high quality workforce, you have to stay ahead of the competition in your industry. The best way to attract the best employees is by offering them a significant list of employee benefits. While this may sound costly in the short-term, it is a great investment in the long run. The impact your employees have on the future success of your company should motivate you to provide your employees a satisfying benefits package. Here’s what to consider when creating an employee benefits package:

 Retirement Plans

 It’s important for an employee to secure themselves an income for when they’re retired and unable to work.  This is something your potential employees will appreciate whenever they are choosing whether or not to accept your offer. Businesses that offer their employees a retirement plan have an increased employee retention rate resulting furthermore in better job performance. There are several options you can choose from to provide the most suitable plan to your employees, such as an Individual Retirement Account (IRA), KEOGH plan or Simplified Employee Pension Plan (SEP) just to name a few.

 Health Insurance

 The most important benefit that the majority of the employees would put at the top of their desired employee benefits is health care coverage. As with the retirement plans, there are also various options, which you can offer your employees as a health insurance plan. For instance:

  •  Paying their fees for certain services they get at their healthcare provider.
  • Self Insurance: when a different company handles the paperwork and you pay for the claims.
  • Managed Care: offering a list of doctors where patients get all their services covered or a discount.
  • Cases when employees can open an Archer Medical Savings Account and save money for healthcare and medical purposes.

 Paid Vacations and Holidays

 This benefit should be a part of every employee benefits package since everyone needs rest and some bonding time with their family during holidays. Some companies wouldn’t bother to offer any other extra benefits, except for the ones, which are obligatory by law. However, going that extra mile for your employees will bring undoubtedly set you apart from your competitors. The more flexible you are, the better team you’ll have for the future. Of course these benefits go both ways; here’s how you as an employer will profit from offering a benefits package to your employees:

  •  Better Job Performance

 Employees who have a valuable benefits package will feel more appreciated and respected, which makes them feel like an integral part of the company. Sometimes a good paycheck, which comes with excellent employee benefits, will be enough of a motivation for your employees to do their job well. Those who feel appreciated are much less likely to slack off at work. Once their contribution to the company is noticed and rewarded, they’ll do their best to keep it like that or even enhance it.

  •  Healthier Employees and Less Sick Days

 Offering your employees the opportunity to visit the doctor by making their health insurance a priority in the benefits package is crucial. All employers certainly want their employees healthy! A healthy employee means an employee who could perform at the best of their ability. Regular medical check ups will provide you with a healthy and active team. Employers who give employees a paid sick leave instead of making them come to work and worsen are in fact protecting the rest of their employees. It would be unwise to force a sick employee to come and stay at work, not being very productive, while at the same time infecting their coworkers. Health is an important issue and always comes first, so employers who offer strong health benefits are in a great position to attract the most qualified employees.

  •  Loyal Employees

 Getting a great team of experts who will care about the success of your company and work hard is the dream of every recruiter, right? Well, if your employees see how appreciated they are through the variety of benefits which your company offers; they are more likely to build a career there. Your company will gain a valuable employment reputation and can avoid wasting additional time and resources when hiring new employees. It is always more viable to invest in your employees in advance to keep them satisfied rather than wait until it’s too late!

 

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Sources:

https://www.guidestoneinsurance.org/AboutUs/Articles/ValueOfEmployeeBenefits

https://www.entrepreneur.com/article/80158

http://hrcouncil.ca/hr-toolkit/compensation-employee.cfm

http://www.unicornhro.com/articles/five-reasons-to-offer-health-benefits-to-your-employees--the-benefits-to-you

http://www.businessbee.com/resources/operations/workforce-management/top-5-reasons-to-offer-employee-benefits/

http://www.unicornhro.com/articles/the-five-most-desired-employee-benefits