In today’s society, employee benefits are an important part of the working world. It isn’t uncommon for valued employees to change employers due to the possibility and promise of better benefits. Ten years ago, benefits weren’t such a big deal- so why are they important now?
According to a 2016 Gallup Report on employee engagement “actions speak louder than words”. Employees are assets and employers need to know what keeps them engaged and motivated. The report shared that
· 33% of employees love their job and are fully engaged in helping the company succeed.
· 51% of the employees were neutral, they simply show up and do only what is required of them
· 16% are disengaged, unhappy and toxic to the workplace.
The report further states that employers need to find avenues to help the “neutral” employees become more engaged.
· 48% of employees would consider changing jobs because of benefits
· 60% stated the benefits package was the #1 reason for accepting or declining a job offer
· 80% would choose additional benefits over a raise
Following are a few reasons that employee benefits are essential.
Benefits show that a company cares.
A company that offers good benefits to its employees comes across as being a caring company who takes its employees needs into consideration. Benefits that can be considered caring are benefits such as dental, life, health insurance and supplemental coverages. Companies that offer these benefits give their employees peace of mind and ensure that they are well taken care of.
A company that offers benefits is seen as attractive.
Employee benefits are also essential for the business itself. Why? This is because a company that offers good benefits is seen as attractive, resulting in more potential employees applying for jobs within the company. This gives employers a range of employees to choose from when hiring, and means that more highly qualified individuals will want the job.
Employee benefits mean healthier employees.
A company that offers health and dental insurance, as well as, some sort of paid sick leave is a company whose employees should be in pretty good health. If employees have some sort of coverage, they are more likely to get checkups and go to the doctor when something is wrong than if they had to pay for medical visits out of their own pocket. This leads to a stronger team of employees and higher productivity. Along with this, also comes a reduced amount of stress in individual employees. Stressed employees are more likely to get sick and take time off of work. If they know that they have benefits to rely on, they are usually less stressed out and feel less pressure, resulting in more time at work and a healthier state of mind.
Employee turnover is minimized.
If employees have benefits, they are less likely to switch jobs, as benefits are often thought of as incentives. When employees aren’t given benefits and a better job is offered, they are likely to leave in favor of the new job (and its offered benefits). A constant turnover of employees due to lack of benefits can be detrimental for a company, but can be remedied with the addition of said benefits.
Offering benefits is simple and effective with a broker.
It’s commonly thought that offering employee benefits is hard and expensive, but it doesn’t have to be. By using an employee benefits broker, the act of offering benefits can be made simple. This being said, it isn’t as expensive as most people think it is. Finding the right broker can help lower the cost of benefits and ensure that the benefits being given are fair.
Many employees research a company’s benefits before they apply or accept a job- this isn’t uncommon and is expected for the most part. For companies who offer benefits, this isn’t a big deal. For companies who don’t offer benefits, however, this can be troubling and might very well be hindering their success.
Employers must attract and retain employees. They can accomplish this more easily by teaming up with an insurance broker who can help them design, prioritize and simplify their benefits program.
You want great employees and spend a tremendous amount of time and money recruiting and hiring. In today’s world potential employees are looking at what YOU have to offer them in addition to salary. Also, what makes you stand out from other companies in your field?
Contact our office for a “no cost” 5 point review of your current Benefits Package or a consultation on what is involved in putting a Benefits Package together.