Benefits of providing employee benefits

As an owner or hiring manager of a business, you want to hire the top talent, right? If so, it’s in both yours and your employees’ best interest to include a benefits package. According to 2016 statistics, three in five applicants (57 percent) reported benefits and perks being top considerations before accepting a job offer.

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While there is a trade-off in the fact that offering benefits is an expense for the company to absorb, the advantages a business can receive in return have significant potential. These advantages can mitigate the costs associated with employee benefits and really provide a strong ROI in the long-term.

Why offer benefits?

When you include a benefits plan it makes your organization more appealing to applicants. And they are paying attention. An attractive package accompanying a job listing is far more likely to entice talented people to apply. Granted, you may also find yourself plowing through a pile of unqualified or undesirable resumes, but it is probable those gems can be found amongst the others and, as a result, find employees who will become assets to your organization.

Additionally, by offering appealing benefits, your best employees are more apt to remain with the organization rather than defecting to a competitor that offers better benefits. While salary is valuable to employees, those additional perks are also very important to staff and prospective employees. 

Common benefits sought by top talent

Aside from the benefits employers gain by hiring and keeping the best talent, there are many other tangible advantages associated with providing employees with great benefits. Here is an overview of some of the top benefits many companies offer and what a company can potentially receive in terms of an ROI.

Health benefits: If you offer good health insurance plan options, your employees are likely to take advantage of them and be proactive in their health, decreasing the chances people will call in sick. Health benefits can also act as a preventative in warding off other long-term illnesses that keep people out on sick leave. Not offering them can impact an organization’s future.

Vacation time (and paid holidays): Aside from the fact that offering vacation time is an attractive quality many top applicants look for when applying for jobs, studies and research have indicated that employees who take an annual vacation are more rested, happier and perform at higher levels of productivity. By offering employees annual time off without penalty, this allows them to spend time with their families, recharge their batteries and decrease their chances of experiencing burn-out from their jobs. Employees who feel their employers support their well-being, along with family values, usually feel more inclined to give back to the business.

Sick time: On occasion, employees may need to take off an occasional unexpected day for illness, a doctor's appointment or when their children are ill. By providing them a way to take a day off for these reasons without penalty of pay or reprimand, over the long term this will result in a more motivated employee who will be appreciative of this very important benefit.

Paid holidays: Many businesses close down for federal holidays and this is an attractive quality for employees. For parents, it’s also an appreciated perk because their kids will be home from school and they don't have to worry about losing a day's pay or finding childcare since they will already have the day off. Granted, this will depend upon the industry but if shuttering doors for a few federal holidays each year doesn’t negatively impact the business, it's a great perk to offer and can add to employee satisfaction.

Retirement plan: Many employees seriously think about their futures because the climate for future financial stability has changed and it is no longer a given that social security will be around. Even if it is, it’s not going to be enough to live off in the retirement years. Salary is important but offering a good retirement plan is an excellent way to attract a loyal and happy employee.

Profit sharing: Employees who are given the opportunity to share in the company's profits will feel a sense of ownership which typically equates to more dedication and desire for the business to succeed. Offering profit sharing is a way to offer your employees a tangible benefit, and you'll probably see higher productivity because everyone has a vested interest in the company's success.

Life and disability insurance: While offering life and disability insurance may not benefit you financially like some of the other employee benefits do, it is still a valuable benefit to offer to your employees, making them more inclined to stick with you. Providing for the future of a spouse or family is important to most people, making this a good benefit to offer.

Additionally, statistics suggest one in three millennials would turn down a job that didn't provide good insurance options. Considering millennials make up the largest portion of the workforce, taking into consideration what benefits matter to them is an important factor, especially considering many of this age group (52 percent according to this Forbes piece) think employer loyalty is overrated.

Invest in employees and see a positive ROI

Employee benefits are costly, but sometimes you have to spend a little money in order to have a lucrative return. By investing in employees, employers are better able to recruit loyal, motivated and productive talent who will be less inclined to seek greener pastures or job hop to better offers.

Additionally, providing good benefits also equates to cost savings because you don't have high turnover. Nor do you need to continually spend time and money recruiting and training new employees if you have already content staff.

Investing in your employees ultimately adds considerable value to your business. Your employees are a valuable asset and they are an asset you want to hold onto. By providing benefits for them you not only give them what they are looking for, you’ll also be helping to secure your own business' financial future.