With unemployment at historic lows, companies are spending more time finding candidates and want to make sure they are doing everything to retain current talent. In a tight labor market, there are many advantages to offering employee benefits.
Recruitment and retention
Health and wellness benefits rank just behind salary for many employees. Employees have reported that they would consider taking a job for less pay if the future employer offered a more robust benefits package. Additionally, studies of employee satisfaction have consistently found that improving benefits is one of the most important ways to retain employees and improve employee engagement.
When employees feel secure, they can focus on their job and productivity increases. Offering benefits that reduce the stress employees feel related to health and wellness goes a long way toward reducing absenteeism by keeping the workforce healthy and productive.
Employee benefits can also offer tax advantages for both the employee and the employer. According to iSure, companies that are incorporated are able to deduct the full cost of insurance from their taxes. In turn, employees can lower their taxable income by the pre-tax deductions offered for company-sponsored health insurance.
Both large and small employers can realize the advantages of offering employee benefits. Leveraging benefits can help differentiate companies as an employer of choice.