Offering Employee Benefits: Is it Worth the Cost?

Increasing your business’ profitability is the goal of any business-large or small. So it stands to reason that draining money out of the company’s bottom line for the sake of employee benefits can seem like a losing proposition. After all, owners may think, why not keep the money otherwise spent on a group plan and simply let employees find their own insurance?

This type of short-term thinking is not the stuff upon which great companies are built. The bottom line is, every business requires investment. The degree to which those running a business are willing to invest in their business reflects the degree to which they believe in their business. Seeing that employees are an integral and vital part of any business, they logically require investment. How much investment you are willing to make in your employees may just dictate the quality of your employees and thus, the success of your business. Remember, a business is only as strong as the employees and people running it.

“Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.”
Anne M. Mulcahy

Snag the best of the best
The goal of any business owner is to build a business with the best and the brightest employees. To find these individuals requires being competitive in salary and benefits. The importance of a good benefits package cannot be overstated in the eyes of today’s job seekers. According to a study, 54% of Millennials cite their benefits as a determining factor in deciding where to work.

Foster employee loyalty
If you do manage to snag the best and brightest employees without a benefits package, the loyalty of your employees may be tenuous at best. The truth is, business must not just compete for customers but for employees, as well. If you can not maintain a competitive compensation package, sadly, your talent pool will likely dwindle or be eventually wooed away by other businesses willing to make greater investments in their employees. In the end, you may be stuck with a costly recruitment process resulting in a substantial loss of $$ while you search for replacements.

Increase the health and productivity of your employees
According to a study, employees who are satisfied with their employment are 12% more productive. A solid compensation plan goes a long way toward giving employees peace of mind and job satisfaction. Health insurance also helps keep them healthy, resulting in fewer sick days and a healthier work environment for everyone.

It’s easy to be lured into cutting corners by not offering a benefits plan to your employees. However, the costs of not staying competitive may be greater than the money saved. Make the investment in your greatest assets – your employees, and you will see positive results as your business soars to new heights.