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The advantages of offering benefits to your employees

Giving your employees a benefits package is a fantastic method to motivate and engage your employees. It also provides them with something meaningful aside from their wages for the effort they undertake for your business.

If you own a small business, you might be considering whether giving your employees the benefits package they need is necessary and worth the cost to your business. The short answer is yes. There are many advantages when you provide your employees with a benefits package that adds worth to their life, and also helps your business thrive. If you’re wondering what the advantages and disadvantages of employee benefits are read on to learn more.

What are employee benefits?

The benefits offered to employees can differ from one company to the next. While some companies offer simple paid holidays, pension schemes and company cars if the job demands it, others may offer more comprehensive benefits packages that include:

Health insurance
Corporate loan schemes
Flexible working
Free gym membership
Childcare provisions

The benefits of offering benefits

The advantages of offering a good employee benefits package are many, but to summarise the benefits, here’s our top four reasons for some of the most compelling reasons you should think about offering benefits packages should you not have one already:

1. Attract (and keep) the best talent

A good employee benefits package is an important consideration for many employees when they are thinking about an employment change. A majority of businesses, even medium or small businesses offer some kind of employee benefits package, and the benefits package is something applicants will think about when looking for a new position.

Employee benefit services can give you an advantage when hiring. You are more likely to get motivated, high-quality and committed employees by demonstrating your dedication to your team members by providing them an increased compensation package.

Also, bear in mind it’s not just about the benefits package. Offering employee benefits shows you believe in your company and its employees, and shows that you’re financially secure to give these benefits. This also proves that you trust in your employees enough to invest in them.

Additionally, once you’ve attracted your ideal candidate Benefits play an essential part in keeping them satisfied. An employee who understands the value of the benefits that you offer is less likely to move on or be interested in other job opportunities.

2. Increase energy, morale, and increase productivity

If you are able to assist your employees in saving cash on their daily and bigger purchases and offer them the opportunity to be involved in activities that bring them joy, you’ll achieve more satisfaction and a more active workforce.

A benefit package can dramatically improve the morale of employees, since they will feel valued and have their needs fulfilled on multiple levels. This leads to an increase in loyalty of employees productivity, as well as general satisfaction with their employer. It’s important to remember that satisfied employees will be singing your praises outside of work, too and will make it easier for you to attract the best candidates when you are next looking for candidates.

3. Healthy workers equal happy workers

Everyone is happier when they’re feeling their best. Where your employee benefits include the health insurance or wellness options You’ll enjoy the benefits. Offering your employees medical, dental, or other benefits for health insurance could help cut down on the amount of time employees have to leave work, by allowing them access to the treatment more quickly privately, rather than waiting until to be scheduled for an NHS appointment.

Even offering paid sick leave is a benefit that is more beneficial. This means when a member of your workforce is off ill and is sick, they can focus on healing and improving at home instead of stressing about getting back to work before they are healthy enough to receive a salary. It’s also in the interests of the whole team to offer paid sick time too. One poorly employee could potentially infect the wider team, causing more serious issues.

4. It can save the employee and employer money

When you offer your employees benefits through salary sacrifice or net pay reduction plans, both your staff and the company can gain tax deductions when they purchase these items. This isn’t limited to obvious benefits for example, pension and healthcare plans. It also applies to other employee benefitslike personal usage of a company vehicle, tuition fees, cafeteria plans, mobile phones or cycle-to-work schemes.

Do you have any disadvantages in offering employee benefits?

It is clear that the advantages of offering employee benefits outweigh any disadvantages. However, there are a couple of important points to consider when it comes to designing the employee benefits program is a good idea for small businesses should take into consideration:

Rising costs

Each year, costs of medical and health insurance rises. Shopping around for a better deal and having to switch your employees around every year could be exhausting and difficult to administer.

Admin costs

Administration tasks that go with providing employee benefits can again be tedious. How much administrative work they need will depend on how comprehensive your organisation’s benefits package is, though you can reduce the amount of time you invest in benefits with a benefits tracking software solution.

In the end, if don’t offer your employees a good benefits package, it’s worth looking into. If you do, you’ll increase morale, loyalty and efficiency among your current team. If you are seeking to grow your business, having an employee benefits program can help you attract and retain the best talent.