At a glance, employee benefits can seem rather costly for a business. Which leads to the question, “Why do so many employers offer benefits?” Although most small businesses aren’t required to offer benefits such as health coverage and paid vacation, many companies do.
Here are just a few reasons why businesses are offering employee benefits today.
1. It Shows You Care
Typically, offering a competitive benefits package is enough to make employees commit to your business for the long run. Investing in your employees shows that you have their best interests in mind, and it will make them want to invest in your company in return.
If you’re not prepared to start offering health benefits, think about setting up 401(k) retirement plans for your employees.
2. It Makes Attracting Talent Easier
Hiring new employees is a tough enough task without having to worry about whether your benefits are competitive enough. New hires are on the market look for an excellent salary, yes, but chances are they’re also looking for health insurance, including dental and vision benefits. Many companies offer custom benefit packages to attract top talent and set themselves apart from competitors.
Some employees may accept better benefits over a higher salary. And once they’re hired, it’s easier to retain employees when they’ve got world-class benefits.
3. It Gives You a Tax Break
Employers can deduct 100 percent of the cost of their employees’ health insurance that they pay on their behalf as a business expense. By offering a traditional group health plan, you can provide employees a tax-advantaged health insurance.
These tax advantages increase your total compensation package and allow you an income tax deduction for the contribution.
4. It Boosts Employee Morale
The 2016 U.S. Employee Benefit Trends Study from MetLife revealed health insurance is the top must-have benefit requested by employees. Offering benefits is a great way to improve the overall attitude of your workforce and show that you understand your employees’ needs.
Showing that you care will likely increase employee loyalty. In return, you can expect to get their best efforts. By providing benefits, you can help keep employees in good health and good spirits.