Justifying employee benefits can be difficult if you are a small business owner struggling to keep your business profitable. Yet investing in benefits is actually an investment in your company that could pay off in future dividends. Remember that you have to spend money to make money. We do not advocate breaking the bank with employee benefits, but we do see the advantages of providing at least a basic package to your workers.
Below is a list of five different ways that providing benefits helps both you and your business. If you would like to know more about how BenefitMall can assist you with benefits administration, we'd be happy to talk with you about it. We are an industry leader offering flexible solutions for any industry. We offer specialized solutions for construction and restaurant employers.
1. Improved Recruiting
There is little doubt that offering benefits improves a company's ability to recruit top talent. Let's be honest. If someone has to choose between your company without benefits and a competitor with benefits, the choice would be simple. That potential hire will go to your competitor where his or her efforts are worth more.
Recent news reports suggest that the economy is now strong enough to make recruiting more difficult than it's been in years. Lower unemployment means more competition for top talent. You cannot afford to be behind by not offering at least basic benefits to new hires. You have to offer benefits if you want your recruiting efforts to pay off.
2. Better Employee Relationships
Benefits help you personally by demonstrating your concern for employees. A benefits package shows them that you see them as more than just human resources. You see them as people with real lives, real families, and real needs. How does this help? By strengthening the relationship that you have with your employees. It goes without saying that healthy employee relationships are good for business.
3. Healthier Employees
It is generally accepted that employees with good health, dental, and vision plans are more likely to access preventative services. As such, they tend to be healthier employees overall. This is also good for business. How so? Because healthy employees are more productive employees. They lose less time due to sickness and they are less likely to be injured on the job because they are healthier overall.
4. Healthier Company Culture
Companies with good benefits packages tend to have healthier cultures than those without. Again, this goes back to employee perception. Employees perceive their companies care about them when they have access to generous benefits packages. Also note that morale is a lot like physical health. Employees with a high level of morale tend to perform better than those who don't feel so good about the company.
5. Better Tax Position
By offering your workers benefits in lieu of cash payments, you're actually saving money at tax time. Numerous kinds of employee benefits are tax-free. These include health insurance, life insurance, employee cafeteria plans, reimbursements for tuition and child care, and more. Any time you can spend less to compensate your employees, you should.
We get the fact that some small business owners feel as though they are priced out of offering benefits. That may be true, but you never really know until you sit down and run the numbers. That's why we are here. Give us a shout and let's talk about your company's payroll and benefits. Perhaps we can save you some money and help you improve what you're offering employees. And remember this: providing benefits helps both you and your business in the long run.