Why are Employee Benefits so Important to Your Business?

Building and maintaining a talented workforce can be a challenge for many businesses. Although competitive pay is an important aspect of a solid career, many employees know that a comprehensive employee benefits package is just as appealing. In fact, a recent study done by Glassdoor found that 4 out of 5 (or 79 percent) of workers would be more interested in a new benefits package as opposed to a pay raise. Pay is important, but it’s not everything, and more individuals in the workforce are looking for businesses that offer more than a check. Bearing that in mind, take a few moments to consider how providing employee benefits can enhance your business model.

Improved Company Loyalty

Employees are more likely to stick around with a company that offers good benefits which will decrease your turn-around and training costs. Employee retention is vital to the success of any company, and with a strong benefits package, workers will be far less likely to search for something better. This company loyalty will also produce free word-of-mouth advertising as friends or family of current employees will be more likely to apply for a job with a company they’ve heard nothing but good things about.

Increased Productivity

An employee benefits package that includes things like health, vision or dental coverage will translate to less work missed by employees due to sudden health issues. An employee with a severe toothache for instance may simply take the day off work if he or she doesn’t have dental coverage, only to return to work a day or two later with the same problem. Unaddressed health issues reduce employee morale and bring productivity to a screeching halt. Employees are more motivated to work for a company that takes care of them, and by offering health or dental coverage, for instance, your workers won’t have the stressful financial burden of being stuck with unaffordable bills following something like a surgery or root canal. One recent study found that companies are losing over $500 billion annually due to employees missing work due to poor health. This revenue could easily be regained by offering comphrehensive healthcare coverage.

Better Morale

Everyone has worked with a co-worker or employee who always seems to be in a sour mood. Poor morale can quickly spread through a workplace and create a depressing, uncomfortable environment for everyone. Providing vacation days, paid leave, retirement plans or other employee benefits will give employees something to work for and look forward to, ultimately increasing morale. Job performance and your overall bottom line will follow suit. The success of any business is always contingent upon the success and happiness of the workers that it is comprised of.

Attract Quality Candidates

For any business to attract and keep a talented workforce for the long haul, providing a great benefits package is essential. The best employees know how valuable their labor is and will seek out businesses that recognize that. Many realize that hourly wage or salary is not everything as employee benefits provided can be seen as a form of payment in and of itself. Health, dental and vision coverage for instance are all things employees would likely be spending money on anyway, so when a company offers them at an affordable price, it’s just as good as earning more income.

Considering all this, it’s clear that businesses profit just as much from employee benefits as the employees themselves. Give back to your employees with profit sharing, paid vacation, sick leave and health insurance. You’ll find that investing in your workforce is an investment in the future of the company itself, its longevity and its reputation in an increasingly competitive marketplace.