Employee benefits is not a selfless act that companies choose to provide just for the sake of being termed as “good employers”. Most successful firms know the value of quality manpower and the importance of keeping their workforce happy. Employee benefits packages go a long way into ensuring employees remain productive and most importantly motivated to execute company goals.
Simply put, employee benefit packages create a win-win scenario for both the employer and the employees. This is exactly why even medium-sized businesses spend thousands of dollars to hire companies offering employee group benefit services to simplify benefits package management. These services help companies to stay compliant and offer the best health packages and benefit plans they can afford.
The cost and effort of maintaining an employee group benefits plan comes with its share of perks for the company. Here are 5 of the most compelling reasons most reputed companies have a solid employee benefits package.
- Health Benefits Improve Productivity
This one’s easy to understand. If your employee benefits plan includes annual health check-ups and access to a quality gym, then your employees are much less likely to fall sick. This means fewer sick days, which directly influences the overall productivity. A great benefit package also makes employees feel valued which increases their morale and encourages them to be more productive during work hours.
- Helps Companies Recruit the Best Employees
When it comes to finding the best person for a particular job, the competition is intense. The unemployment rate in America is steadily declining, which means there are more jobs available for people who are qualified. HR managers have a tough job of luring talent from competitor firms. A great benefits package with a family health plan often gets the attention of the top performers in the industry. The package acts as a bargaining chip for recruiters to find the talent they need to get ahead of the competition.
- Allows Employees to Retain Employees
Just like you would want to find talents who are performing well for your competitors, you need to simultaneously make an effort to retain your current employees. Most employees value a consumer driven health package to tackle unexpected medical expenses that also provides protection to their family members. This drastically improves employee satisfaction levels and thus boosts retention.
- Helps Companies to Adhere to Regulations
Sometimes companies offer benefits just to remain compliant with local and federal laws. Companies with more than 50 full-time employees need to offer a health plan that meets a certain standard. Failing to do so attracts hefty fines.
- Pay Less State and Federal Taxes
Offering benefits instead of higher salaries can provide tax breaks. Having a lower base wage allows companies to save on federal and state unemployment taxes. Employees themselves can enjoy a lower tax percentage. The benefits take care of health expenses and the lower salaries help employees save on income tax.
Employee benefits packages are a good parameter to judge a company’s outlook towards wellness. A great package displays the company’s willingness to think long term and act in a way that boosts their bottom line as well as in the interests of its employees.
