Top 5 Reasons to Provide Employees Benefits

Deciding whether or not to provide your employees with benefits can be an extremely difficult choice for a business owner. On one hand, you want to give the people who work for you the best possible treatment. But the costs of providing insurance to every employee can quickly diminish the profitability of an endeavor. There certainly won’t be any benefits if your company can’t afford its operating expenses.

The federal government’s debate over if and how to implement a single-payer system has hit a roadblock; but business owners don’t have the luxury of putting off their decisions until an unspecified date. These are the top five reasons to provide employee benefits at your company.

Providing Benefits Will Get You Better Applicants

If a prospective employee has the option to work for your company or another one, and the only difference between the two is that yours doesn’t provide benefits, they will choose the other company. The ability to bring in and keep top talent is one of the best reasons to offer your employees benefits.

Happy Employees Will Be More Likely to Stay

It’s no secret that high employee turnover is bad news for a company. Not only do companies lose experience when people decide to leave, it costs businesses a lot of money. Seriously, your company might as well be shoveling money into an incinerator if your staff is a revolving cast. These are just a few costs that come with having to hire new personnel: training, interviewing, advertising, loss of productivity. And if turnover is a chronic problem at your company, it’s likely that your employees have noticed.

Collaborating with Employees Can Keep Costs Down

One of the major mistakes a lot of companies make regarding employee benefit plans is they just make decisions without consulting the people those choices will actually affect—the employees. No one likes being on the receiving end of a one-sided conversation. There’s no reason you should expect employees to tolerate this. If they’re skilled workers, they’ll be just as happy finding a workplace that takes their input and needs into consideration. To illustrate this, the job posting site Monster ran a survey of job seekers and employees to see what benefits were most important to them. Here are the results of that survey:

  • Healthcare plan = 32%
  • Vacation Time = 25%
  • Pay Raise = 15%
  • Employee Benefit = 10%
  • Performance Bonus = 9%
  • Retirement Plan = 8%

Based on these results, your employees are probably going to care a lot more about workers compensation than 401(k) matching. But this can vary depending on workplace, which makes it so important to ask your employees of input.

You Might Be Required by Law to Provide Benefits

If your company has 50 or more full-time employees, it’s actually against the law to not provide full-time or equivalent employees with the option for health insurance. You’ve maybe heard of this called the employer mandate. Companies that don’t comply with this will be audited and required to pay a tax penalty. It’s probably a better idea to just take care of your workers.

You Want Healthy Employees

This should go without saying, but your business will be much better off if your employees are in good health. Not only will they be in better spirits, they will miss less time. Better health and morale for your employees means better ROI for business owners.

The cost of providing employees with healthcare and other benefits is a major deterrent for a lot of business owners—especially in the small business world, where the financial burden is greater. However, there are many reasons why giving employee benefits to your workers can end up helping your bottom line in the long run.