Nothing is more important than the people working within when running a business or managing an organization. Finding the right people for your organization usually requires offering something beyond just the basic salary. But if you’re running a small organization, you may wonder if employee benefits are essential.
The short answer is employee benefits are significant and are necessary for many. Apart from the fact that most employees expect them, it could also determine the success of your business. It would be best to offer employee benefits to help you attract and retain the best talents. It also boosts productivity, ensures your workforce stays healthy and enables better morale in the workplace.
Knowing the importance of employee benefits encourages you to prioritize it as an employer or manager. This article explains what employee benefits are and discusses why they’re necessary for your organization.
What are Employee Benefits?
Employee benefits are the perks that employees get due to their employment position apart from the wages and salaries. Canada Revenue Agency defines it as a good or service that the employee gives or arranges for a third party to provide for employees. For example, it could be free use of a property or a subsidy on a service. Employee benefits also include reimbursement of employees’ expenses or an allowance.
Employee benefits come in different forms and may include medical insurance, overtime, retirement benefits, profit sharing, vacation, parental leave, paid sick leave, casual dress days, etc.
Why are Employee Benefits Necessary?
Several reasons make offering employee benefits worth it. Here are some of them:
Attract the Best Employees
To have a successful organization, you need to hire the best hands and minds. Unfortunately, other organizations and businesses also have the same goal, which means heavy competition. One of the surest ways to get the best employees is by having an excellent employee benefits package. While the job market might seem saturated, finding the most qualified candidates isn’t easy, you may need to offer more benefits to keep encouraging employees.
Thus, employee benefits are necessary because it makes you competitive in the job market. Without it, you’ll likely lose out on several good employees. In addition, most employees will consider the benefits package when choosing where they work. Beyond the compensation, a good benefits package for your employees suggests you’re strong financially and care enough about your workforce to invest in them. That’s a good sign and will attract the best employees.
Retention of Employees
It’s one thing to get talented and dedicated employees; it’s another thing to keep them on the job and minimize workers’ turnaround. Employee benefits can help you to retain your best employees and keep them motivated to deliver their best at all times. In addition, with a good benefits program, employees will feel more secure in their position and confident that the company is financially stable. So, they’re less likely to leave.
Higher employee retention is good for your organization. It ensures long-term stability because the longer the employee stays, the more familiar they are with the company culture and clients. So, they can quickly solve problems and handle clients more effectively. It also means that you’ll save money that you would otherwise spend hiring new people and training them each time a worker has to leave. Benefits help you build employees’ loyalty, which is vital for the success of any business.
Ensure your workforce stay healthy and happy
Health is wealth, and that is true when it comes to running an organization. The healthier your employees are, the more energy they can dedicate to work, and the more productive they will be. You can ensure your employees stay in good shape by providing health packages as part of the employee benefit. Health insurance covering dental and other health issues not covered by the universal healthcare insurance can make sure simple health issues receive adequate attention early before they become severe and deprive you of a worker’s input for many days.
Offering paid sick leave is also a great initiative. It encourages workers to stay home when they are sick instead of showing up at work and infecting the rest of the team. In addition, when employees know they’ll get paid for their days off, they can focus more on recovery instead of worrying about the income they’re losing.
When considering all the above-listed advantages of employment benefits, you can easily see why it’ll boost productivity. A healthy, loyal, and talented workforce will be more productive because they have the motivation they need right on the job. You hired the best set of workers already, which gives you an advantage. The long time they’ve spent working together will also ensure the work process is smoother, and since they’re healthy, they are physically capable of working to the best of their ability.
A good package of benefits also means that your employees aren’t worrying about healthcare, retirement, child care, and other concerns because the benefits program already addresses all these. So, they can focus on work and deliver their best.
Better morale and increased attendance
A good employee benefits package will show your employees that you care about them, making a difference in the workplace atmosphere. Personal needs of an employee such as family commitments, health issues, and finances can cause workers’ absenteeism and even reduce their ability to work. But with benefits already covering most of these issues, you’ll have satisfied workers who are willing to give 100% almost all the time.
Happy employees are just like satisfied customers; they market your business and encourage people to patronize you and other talented workers to come to your company.
Is it worth it?
Many small businesses are concerned about whether the costs of benefits aren’t too expensive. But considering what you stand to gain, it’s not. You can start with essential benefits within your budget or even offer some free benefits such as casual dress and flex time. You can also set up employee benefits where employees pay part of the fees. For example, subsidizing health insurance and making it voluntary for employees will encourage many to opt for it. If you’re thinking of setting up your employee benefits program, have any other questions or want more insurance advice or quotes, we’d recommend you to contact Insurance Direct Canada.