Your benefits strategy can make or break the quality of employees you are able to attract and retain. This is especially true if you are a small business owner, competing with large corporations who offer perks like onsite gyms and daily free lunches. A recent article from Entrepreneur gives several reasons why improving benefits is a good strategy for small businesses.
- It’s profitable. Happy, engaged employees are productive employees. A 2015 report from The Aberdeen Group shows that companies with high employee engagement achieve higher annual revenue and receive more customer referrals than companies without. The purpose of a comprehensive benefits package is to provide employees the peace of mind they need to focus on their work. This may not provide an immediate ROI, but over time having engaged employees really pays off.
- It creates a heathier workforce. Employees who have access to benefits are more likely to are more likely to get regular check-ups and take preventative measures to stay healthy. This decreases overall employee absences. Absenteeism: The Bottom-Line Killer, a publication of workforce solution company Circadian, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees.
- Turnover is expensive. Studies show it can cost 30 to 50 percent of an entry-level employee’s salary to replace them and for mid-level employees, the expense is upward of 150 percent of salary. The cost of excessive turnover can add up quickly. It is much more economical to retain current employees than it is to find new ones. So what is the best pay to keep those employees you worked so hard to find and train? According to a 2015 study by Glassdoor, 79 percent of employees would prefer more benefits or perks to a raise.
- It enhances your company culture. Your benefits strategy sends a very clear message to you employees what is important to the organization. Benefits such as paid time off and flexible work arrangements, send the message that your company values work-life balance.
What are some of the benefits you can offer to employees?
There are traditional benefits such as:
- Health insurance
- Dental insurance
- Vision insurance
- Medical flexible spending accounts
- Dependent care spending accounts
There are ancillary benefits options such as:
- Life insurance
- Disability insurance
- Accident insurance
- Critical illness insurance
Then they are other benefits and perks that you may not think of such as:
- Paid time off
- Flexible work arrangements
- Professional certifications
- Continuing education/training
- Free coffee, soda or water in the office
- Occasional company-sponsored lunches
- Company-sponsored events (Christmas parties, summer picnics, etc.)
If you are looking for options to improve your company benefits offering, contact a Client Success Manager at Helpside at 1-800-748-5102 or firstname.lastname@example.org.