Your employees are your strongest asset and one of the biggest investments for your company. A healthy and engaged staff is more productive than an unhealthy and unhappy team. Also, employees with poor health can’t exert the effort required to be highly productive. Further, you need engaged employees to create innovative solutions. Offering employee benefits is a way to address both these factors. Not convinced? Here are 5 reasons you need an employee benefits plan.
- Gain a competitive edge by retaining key employees
- Create a caring culture by providing protection and peace of mind for employees and their families
- Attract talent and give employees what they want
- Tax advantages
- Have a healthy and productive workforce
1. Gain a competitive edge by retaining key employees
As a business owner, you know it’s more expensive to recruit new employees than to keep your current team. There are hard costs related to advertising and recruiting fees and soft costs in time lost to interviewing and training. There’s also the question of “fit” in the company culture. One way to keep your high-performing employees working for your business is by offering them a total compensation package that includes an employee benefits plan. An employee benefits plan can be a major factor in creating loyalty and helping to boost employee morale.
2. Create a caring culture by providing protection and peace of mind for employees and their families
Providing a benefits plan shows employees and potential recruits that you care about their wellbeing and peace of mind. Essentially, you’re providing protection to the employee and their family from the possibility of economic hardship caused by illness, disability, loss of life, or unemployment. An employee benefit plan creates a sense of security in your team.
3. Attract talent and give employees what they want
According to a survey, 59% of employees would rather keep their benefits plan than accept $10,000 in cash. This shows the importance of a benefits plan as an integral part of the total compensation an employee receives. It’s also an attractive feature when recruiting valuable talent.
4. Tax advantages
When your company contributes to a group benefits plan, your expense is tax-deductible, and the employee can derive the full value of the benefits. Considering the tax-effectiveness and the high perceived value of a group protection insurance plan for a relatively low cost, group benefits are a great way to make the most of your hard-earned dollars.
5. Have a healthy and productive workforce
Investing in your employees is investing in your company’s future. You know where you want to go and you need engaged employees that are productive and healthy to get you there. A strong benefits plan encourages employees to be more proactive about their health and reduces sick-days.
Do these 5 reasons you need an employee benefits plan have you convinced? Want to learn more about how you can get started with a comprehensive benefits plan? Reach out to our consulting team.