4 Key Reasons You Should Offer Benefits to Employees
Should you offer benefits to employees? For many businesses, the answer to this question is driven largely by the need to comply with local, state, and federal laws such as the Affordable Care Act (ACA). While compliance is an important part of every company's HR strategy, offering benefits to employees accomplishes many other goals for companies seeking to attract and retain top talent. Here's a look at some of the additional key reasons you should offer additional benefits to employees.
It Can Help You Attract Top Talent
A recent original survey by Paychex revealed that the number one reason companies offer employees health insurance is to attract top talent. This reflects other research in the market. For example, the Society for Human Resource Management (SHRM) found that benefits play an important role in hiring and retaining employees. For human resources managers and business leaders, this creates an opportunity to evaluate whether your benefits plan is competitive with the market and standards in your industry. If so, ensure that your job ads and interview processes emphasize these benefits. If there's room for improvement, consider where further investments in your benefits may make your company more competitive during the hiring process.
It May Reduce Turnover
Paychex research has revealed that the number one reason employers offer retirement plans is to reduce employee turnover. Employees who are making an investment in their future through retirement plans may be less likely to move on to other companies – in particular, when employers make matching contributions or provide additional value it adds to an employee's total compensation. Determine whether your retirement plans and other benefits enhance your compensation, or whether adding additional benefits to your current offerings could increase employee retention.
Benefits Can Lead to a Healthier Workforce
Access to benefits may lead to a healthier workforce, which may in turn reduce out-of-office time. For example, health insurance may increase the chances that an ill employee will seek treatment and get back to work faster. A healthier workforce means that you're less likely to deal with missed workdays, scheduling issues, and other challenges; perhaps consider starting an employee wellness program. In addition, access to benefits can help keep your employees healthier over time, which is a significant concern in the rapidly aging workforce. Other benefits such as retirement plans can help reduce stress which also contributes to a healthier workforce.
Employees That Are Appreciated Have Better Attitudes
Employee engagement and morale remain important buzzwords this year. Media headlines report low levels of engagement throughout organizations, leaving HR executives to ask what tools are available to them to increase employee morale. Offering benefits is one strategy that shows your company cares about employees and wants to offer more value. When employees feel that your benefits plan shows that they are valued and is on par with what other top companies are offering, their performance will often improve as a result.
Companies that offer benefits attract top employees, may be viewed as more competitive in terms of their compensation, and generally may have more engaged and happier teams. As a result, evaluate your current benefits offerings and determine whether there is room for improvement.