If your small business is on a budget, you may wonder if it is worth the cost to offer group benefits to your employees. Bear in mind that your workers are your company’s most valuable asset. Think of group benefits as an investment in the future of your business, with big returns in the long run.
Reasons to Offer Group Benefits
Tax Advantages
A number of employee benefits have tax advantages, some for both the employer and the employee. Benefits with tax advantages include:
- Healthcare contributions
- Retirement plan contributions
- Life insurance
- Tuition reimbursement
- Childcare reimbursement
- Cafeteria plans
- Meals provided at work
- Cell phones
- Employee discounts
Recruitment and Retention
A great employee benefits package can help you attract top talent to your company. Many businesses with fewer than 50 employees offer healthcare and other benefits, and to remain competitive, you may need to do the same. Offering benefits shows that you believe in your company, want to invest in your workers, and have strong enough finances to do so.
Great group benefits can also help reduce employee turnaround. They give your workers a sense of stability and security and help keep them from being tempted by other offers. The end result is you save money on hiring and training new employees, and you retain a more knowledgeable, experienced team who get the job done with greater efficiency and expertise.
Healthier Workers
As we all know from personal experience, individuals in good health, who are feeling well, tend to get more done. Health benefits, in particular, can give you a more productive workforce. Health and dental insurance make it possible for employees to get preventative care on a regular basis and to take care of minor health problems before they become major issues.
Paid sick leave can also contribute to keeping your workforce healthy. When you encourage employees to stay home when they are ill, and pay them to do so, you help prevent the spread of contagious disease in the workplace, so you have fewer workers out sick. Sick leave gives ill employees a chance to rest and heal, so they can return to work refreshed and productive.
Higher Morale and Increased Productivity
Providing group benefits lets your employees know you care about their health and wellbeing. This fosters loyalty and retention and a desire to reciprocate with hard work and dedication. In addition, group benefits give your workers less to worry about and greater peace of mind. When they are not feeling stressed about saving for retirement or the cost of healthcare or childcare, they are more able to focus on the job at hand and give it their best effort.
Building a competitive group benefits package to offer your employees is an important step for your small business. It can lower your taxes, make it easier to recruit and retain the best team. and increase morale and productivity. Our agent can help you put together a package with the most attractive benefits at the best available rates.