Have you ever questioned if the cost of employee benefits outweighs the additional administrative work? Here’s a suggestion: Learn about the value of employee perks and how providing them may help your company.
What is the significance of employee benefits?
Employee benefits: how crucial are they? Instead of a pay raise, 79 percent of employees would choose new or extra perks. While good pay is vital, so are decent benefits. Employees aren’t the only ones who want benefits. They can help you grow your company. Benefits can boost employee retention, attention and productivity, attendance, and recruitment.
Increased loyalty from employees
When you provide benefits to your employees, they are more likely to remain loyal to your company. According to one survey, having a benefits package is highly significant to an employee’s commitment to their firm.
Employees desire the freedom to customize their benefits to fit their needs. According to a survey, 72 percent of employees believe that having the opportunity to tailor benefits makes them more loyal. Offering a limited set of benefits prevents employees from selecting what is best for them. Employees who are more loyal are more likely to stay with your company. Employee retention can be aided by establishing or expanding a benefits program. 36% of employees believe that one thing their employers can do to keep them in their positions is to improve their benefits package.
Focus and productivity will improve
A lack of benefits can harm employees’ ability to focus and be productive at work. How? For starters, employees may be concerned about issues in their personal lives, such as childcare, illness, and finances. Employees who are worried about these issues are not focused on their work.
Data support this. According to a report, 23% of employees are less productive at work due to money concerns. According to the same survey, 58 percent of employees had lost sleep over daycare concerns. Employees who are sleepy or stressed are unable to concentrate at work.
You can provide stress-relieving benefits to your staff. Employees can be more present at work when they can take care of matters outside of work. Benefits impact employees’ capacity to focus at work, according to 51% of those polled. A further 51% agreed that benefits have an impact on their productivity at work.
Attendance will increase
When your employees have benefits, they are more likely to show up for work. On the other hand, finances, family commitments, and health difficulties are three of the most common reasons for workplace absenteeism.
Your employees may need to perform financial errands. Employees will have fewer financial errands to run if benefits are provided. According to a survey, 43% of employees feel that benefits impact their frequency of work absences due to errands.
74% of employees have missed out on work opportunities because of family obligations. Flexible work arrangements, for example, can reduce the amount of time people lose from work due to family obligations.
When employees have health benefits, they are less likely to miss work due to illness. In addition, employees who are happy with their benefits are less likely to avoid going to the doctor or postpone medical procedures. Again, this is because they know their medical needs will be covered.
Employees with benefits may have fewer health-related issues that could lead to them missing work. Benefits can help an employee’s mental and physical well-being, which reduces absenteeism. When employees are at work, they have more opportunities to develop skills and make connections. Staff who make connections at work are more likely to stay with the company.
Employee morale will improve
Employees who belong to a benefits plan feel financially secure, and they know their medical needs will be taken care of in case an emergency occurs. An employee is less likely to miss work when their financial or health conditions are covered through this type of package. They do not have to worry about fixing a problem because they can take care of it at work.
You boost your ability to attract prospects and hire new staff by providing benefits.
You may believe that a hefty salary is what draws staff. However, perks are just as vital as pay. According to a survey, 55% of employees are somewhat willing to take a job with a slightly lower income if it comes with better benefits. Employees are also more likely to accept a job offer if it includes health and wellness benefits, as well as flextime.
What are the most important benefits to employees?
You can provide a variety of benefits to your employees. It’s easy to become overwhelmed by your options. Start with the most common employee benefits. The following common benefits are viewed as highly significant by employees:
40% of employees view health insurance as the most critical advantage to join a company. Health problems can accumulate quickly, and they can cause an employee to miss work. When you offer healthcare benefits, you prevent your staff from being absent due to illness or injury.
33% of surveyed employees believed that family leave was the most crucial reason to join a company. When employees have family leave, they are better equipped to handle their responsibilities at home. This could mean that they call in less often than if they did not have this benefit.
Paid time off
32% of employees value paid time off the most as it allows them to take time off when needed. Paid time off is good for staff morale, and it can prevent an employee from feeling burned out.
30% of employees view retirement plans as the most important reason to join a company. Employees are afraid that they may not be able to retire comfortably. Retirement plans put their minds at ease, leading to their loyalty and increased productivity on the job.
Isn’t it true that benefits are costly?
Employee benefits may appear unaffordable to you as a small business owner. Begin by providing low-cost employee perks. Some advantages, including flextime and casual dress, are even offered for free.
Employees are also willing to pay extra to have the perks they desire. Employees are willing to pay extra for perks if they suit their needs, according to 52% of employees. Furthermore, if granted the option, 77 percent of employees are somewhat inclined to obtain voluntary insurance. Your employees may be willing to pay for all or part of the perk if you set it up.
You must subtract wages if your employees are required to contribute wages to a benefit. However, you can use online payroll software to assist you in deducting money from each employee’s paycheck.
Final thoughts about the importance of employee benefits
Employee benefits have become a necessity for businesses. Group health insurance is now required in most states, and other employee perks are also standard in the market. These perks are important to employees, so you must provide them for your business’s success.
The increase in attendance, employee morale, employee recruitment, and employee retention are just a few of the ways that employee benefits can increase your business’s profitability.