The importance of employee benefits

 

 

 

What are employee benefits?

We often get asked – what are employee benefits? Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. These employee benefit packages may include overtime, medical insurance, vacation, profit sharing and retirement benefits, to name just a few.

Main Reasons to Offer Employee Benefits

We will discussed top 5 reasons to offer employee benefits as follows.

1.Minimize employee turnaround

While hiring matters, you also need to think about keeping your employees around. And once more, benefits come in handy.

Like we said when talking about hiring, a good benefits package can keep your workers from getting swayed by other job offers. And when you offer benefits, you’ll help your employees feel the company (and their employment) is stable and secure, so they’re less likely to start putting out resumes.

The end result? Lower employee turnover and higher employee retention for your business.

2.Attract the most talented employees

If you want to hire the best employees―talented, motivated workers who can help your company succeed―then a solid employee benefits package is a great place to start.

In other words, to be competitive with hiring, you really need employee benefits. Otherwise, you’ll probably lose the best candidates to businesses that offer a benefits package. Because for many workers, a benefits program can be a deciding factor in choosing where to work. It’s an important part of their overall compensation.

But it goes beyond compensation. When your business offers benefits, it shows that you believe in your company, that you have strong enough finances to afford benefits, and that you want to invest in your workforce. Put simply, benefits suggest you’ve got what it takes to be a great employer―which in turn attracts great employees.

 

3.Boost employee productivity

 At this point, we’ve told you how a strong benefits package can get you talented workers, keep them around long-term, and give you a healthier workforce. The natural result of all those things? More productivity.

 And benefits will give your employees the mental headspace to stay productive too. Your workforce won’t feel as worried about affording health care, saving for retirement, taking care of their children, or other concerns that benefits can address. That means they have more brain power and motivation to put to work for your business.

 

4.Keep a healthy workforce

You probably know firsthand that when you feel better, you work better. So if you want a more productive employee, benefits―especially health benefits―can help.

The point is, healthier employees can lead to a healthier business. It makes good business sense to offer health insurance and other wellness benefits.

 

5.Enjoy better worker moral

Finally, having a good benefits package can improve employee morale, leading to a better workplace overall.

After all, providing employee benefits will help your employees feel you care about their personal needs. That, in turn, can improve employee loyalty and satisfaction. They’ll bring their best to work. 

Employee Benefits Plans

Depending on the type of organization and the job, employee benefits may be quite different. For example, government employee benefit packages for full-time employees look very different from the packages offered to part-time employees. Employee benefits packages are typically discussed during the final interview or at the time an offer is extended. The right benefits package can give you a distinct advantage in competitive recruiting situations.

Popular employee benefits

– Health Insurance (medical, dental & vision)
– Vacation
– Sick leave
– Retirement plan including company contribution/matching
– Wellbeing program that offers incentives for both individuals and families
– Profit sharing
– Transit benefit allowance
– Tuition or student loan contribution
– Salary increase
– Bonus
– Flexible working hours, including options to work from home
– Disability insurance

Reference-

 

Virgin Pulse. (2021) Employee Benefits | The Importance of Employee Benefits. [online] Available at: https://www.virginpulse.com/glossary/employee-benefits [Accessed 6 May 2021]

 

 Goodshore,C. (2021) Top 5 Reasons to Offer Employee Benefits.[online] Available at: https://www.business.org/hr/benefits/top-reasons-to-offer-employee-benefits [Accessed 6 May 2021].