Employees are the heart of any great business, and key employees and leaders are essential to long term success. Once you get a great team in place and they’re performing well, it’s a huge blow to lose any of your indispensable employees. Benefits are no longer a perk in today’s business world; they’re an expected part of compensation. Following are seven good reasons to offer benefits to your employees:
- It’s the law. According to healthcare reform regulations, if you have 50+ full-time employees (or full-time equivalents), you must offer an affordable, qualified health plan or pay the corresponding penalty. A Professional Employer Organization (PEO) like Staff One HR can provide consultation and assistance with ACA compliance. Business operations that traditionally employ a large percentage of part-time workers – such as the restaurant and hospitality industries – are likely to face IRS audits due to the part-time and seasonal natures of those industries.
- Attract and retain your best employees. By offering high quality benefits you will attract and retain the most qualified candidates for your business, and keep your best employees happy. The average benefits package is worth $5,000 per year per employee on average. Consider a rich benefits package “equity.”
- Increase your bottom line. By offering excellent benefits Instead of a higher salary, the employer wins by having a lower wage base match for SUTA (state unemployment) and FUTA (federal unemployment) taxes. The employee and his or her family win by having “peace of mind” with a comprehensive benefits package including wellness visits for children.
- Boost morale. By offering a rich benefits package, an employer shows a “vested interest” in employees. In short, benefits can help promote good morale by keeping employees happier and healthier, with less turnover for the company.
- Promote employee health and wellness. When employees have access to wellness, preventive care doctor visits, and Telemedicine programs, your overall business environment is healthier. Fewer employees out on sick days – and fewer people coming in to work while ill — equals increased productivity and profitability.
- Beat the competition in the race for talent. By offering an ACA-compliant health plan plus voluntary benefits, you can beat out 43% of your competitors that do not offer benefits.
- Create loyalty. Health insurance is an emotional offering. It says to the employee, “you are a valued asset to this company, and we care about your health and wellbeing.”
While offering employee benefits may cost employers more initially, the long term advantages can greatly outweigh these costs. By creating a stable, healthy environment and a company culture that values employees, you set your business apart from the competition, and put yourself on the fast track for success.