Benefits are an important part of an employee’s total compensation package. They also show employees that you care about their health and wellbeing. When companies offer a competitive benefits package, it can also help increase employee productivity, motivation, and loyalty to your company.  

Here are 4 reasons why employee benefits are important:  

Attraction and Retention 

Employers should consider including their benefits in their job description to help attract top talent. Studies show that over 70% of job seekers would apply to a company if their benefits were outlined in their job description.  

Having a competitive benefits package not only attracts employees, but it also helps retain them. 78% of employees said they would stay with a company if they liked their benefits.  

To help increase attraction and retention, consider identifying and resolving gaps in the benefits your company currently offers. This can help your company have well-rounded benefits that will keep employees wanting to work for you.  

Increased productivity  

A competitive benefits package offers perks such as health insurance, paid time off, and disability insurance. Having benefits that focus on employee health will help reduce employee stress related to finances and medical expenses. When employees are receiving help with their personal matters, it gives them more time to focus on their work and reach their goals.  

Positive company culture 

Employees with access to a variety of employee benefits are more likely to feel valued by the company. Employees with a more positive attitude in the workplace which can greatly impact company culture 

Improve company reputation  

The reputation of a company is very important for attracting new employees and clients. When a company does not treat their employees well, it can be difficult to grow the business and keep good employees. 

However, if companies prioritize the wellbeing of their employees and offer competitive benefits then it will help improve the company reputation.  


Working with a PEO can help small businesses access better benefits for employees at an affordable cost.   Benefits are important for maintaining employee satisfaction, so employers should consider options for offering competitive benefits. Having a well-rounded benefits package will increase attraction, retention, productivity, morale, and improve the company reputation.  

If you have any questions regarding benefits, reach out to us at