Small businesses can benefit from employee benefits in five ways
Health benefits have consistently ranked as the number one benefit employers and employees in the U.S. care about most, according to the Society for Human Resource Management. Eighty-six percent of employers consider health benefits important to their workforce.
Small employers, however, may find offering competitive Employee benefits Chicago a hard balancing act between keeping employees happy and managing the costs associated with insurance-not to mention other expected perks like retirement savings accounts, paid time off, and bonuses.
Benefits for employees: five advantages
1. Attract and retain top talent
Good Sammy offer benefits to employees today because employees value them and expect them. Glassdoor’s Employment Confidence Survey shows that 4 out of 5 employees would rather have new or additional benefits than a pay raise.
Small employers can compete with larger employers who have the budget to pay higher salaries with this. A good benefits package will get top candidates in the door and keep them around long-term, even if you can’t offer them a big paycheck.
2. The healthiest workforce is the most productive
Benefit programs provide your employees with the resources they need to remain healthy and productive, resulting in a win-win situation for you and them.
By providing employees with access to quality healthcare, and contributing to its cost, employers relieve employees and their families of a significant financial burden.
Offering health benefits to employees can reduce sick days and unplanned absences. Those are measurable returns on investment.
3. The culture and morale of the organization
You’re likely to have close working relationships with your employees if you’re a small employer. The employees feel this reciprocity in terms of morale and culture. When employees know their employer cares about their health and wellbeing, they are more likely to stay loyal.
In a survey conducted by the Science of Care, 60% of workers who felt taken care of by their employers said they planned to stay with their companies for three or more years, compared to only 7% of those who said they didn’t feel taken care of.
4. Tax advantages
Many employee benefits are tax-advantaged for both the organization and its employees, not just contributions to healthcare and retirement plans, as you might expect.
There are several other types of employee benefits that are tax-free, including:
- Life insurance
- Tuition reimbursement
- Providing reimbursement for child care
- Cafeteria plans
- Getting discounts as an employee
- Company-owned vehicles for personal use
- Cell phones
- Meals provided on the job
5. Building a solid foundation
The final benefit of employee benefits is that they allow your organization to scale and grow. Employers who offer unique and attractive benefits packages are more likely to attract, hire, and retain the best employees.
A study conducted by LinkedIn found that organizations with high employee ratings on compensation and benefits had 56% lower attrition rates than organizations with low ratings.
Budget-friendly health benefits for employees
Healthcare is valued more by employees than any other employee benefit, so you should put it first on your list. Fortunately, PeopleKeep offers a qualified small employer health reimbursement arrangement (QSEHRA) designed for businesses with fewer than 50 full-time employees.
A QSEHRA enables employers to reimburse employees tax-free for their medical expenses, including individual health insurance premiums, allowing employees to receive the health benefits they deserve at a low cost that is affordable.