Different employers have different views on employee benefits. Larger firms tend to embrace benefits, whereas small businesses often do what they can to cut costs as much as possible. The question arises: does offering employee benefits make a difference for a small business? The simple answer is yes, but let’s find out the reasons.
Top Reasons to Offer Employee Benefits
You should offer employee benefits for the following reasons:
- Attract the most talented employees
Nearly all businesses that employ over 100 employees offer employee benefits because it helps attract a certain level of talent and experience. Without benefits, employees can burn out on the job in a short time once they’ve assessed their long-term careers.
But smaller companies tend to avoid any extra costs beyond the means of production and other immediate operational expenses. This practice gives a dramatic edge to competitors that do offer benefits and incentives.
- Minimize employee turnaround
High employee turnover is a typical outcome for companies that don’t offer employee benefits. This reality should not come as a surprise to any manager. High turnover is costly because it usually requires training and time to get new employees up to speed. Constantly hiring new people may also require advertising costs.
If you never have a consistent or seasoned workforce, it can cause customers to notice deficiencies in service and company identity. By providing the right benefits to your staff, you’ll have a better chance at maintaining team consistency and a positive reputation.
- Keep a healthy workforce
Health benefits are vital to career-minded employees. Not only does a health plan boost employee loyalty and confidence in the employer, but it also helps you maintain a healthy workforce. Having a health plan increases the odds employees will seek immediate help for health issues and recover faster. This means it’s less likely for small health problems to escalate into bigger, more complex dispositions.
- Boost employee productivity
The more you can reduce the sick days of employees, the more productive your staff will be. Many companies now recognize wellness as an integral part of productivity, so they provide mental as well as physical health benefits. Workers are much more productive when they are happy about their jobs. If you don’t offer at least health benefits, it will eventually become difficult for employees to remain loyal and dedicated once they become ill.
- Enjoy better worker morale
Employee benefits send a signal that the employer cares about the well-being of its team. Company morale greatly relies on quality leadership and team spirit. A company that doesn’t send this message to employees is destined to encounter labor shortages at some point. Team morale will erode over time if you never acknowledge or reward your employees adequately. But offering benefits can boost team morale and keep individuals on your team for years.
Make Benefits Part of Your Business Model with J Archer Insurance
Offering employee benefits is crucial to any business that wants to attract career-minded professionals. Avoiding benefits creates a red flag for employees not to take the company seriously as a long-term career choice. Adding benefits to recruiting top talent makes sense if your business is well-funded and relies on a workforce to generate profits. Contact us at J. Archer Insurance Group for more information on attractive and effective benefits packages.