Having trouble finding and retaining great employees? You’re not alone. Hiring has been getting harder and turnover is high. Organizations that want a competitive advantage in today’s tight labor market should understand the value of employee benefits.
Failure to offer competitive benefits for the purpose of savings is short-sited. Without such offerings, you won’t be able to attract and keep the best employees. Bad hires costs companies thousands every year. Offering a strategic benefits plan can jumpstart your company’s growth and set you up for long-term success.
Why Employee Benefits Are Important for Business?
Surveys indicate a strong correlation between employee benefits and job satisfaction and engagement — 92 percent of employees said benefits are important to their overall job satisfaction.
The same survey found a relationship between benefits and recruitment and retention — overall benefits packages are consistently among the top reasons for accepting a job offer and choosing to stay.
A different survey from Fidelity found that “25- to 35-year-olds said they’d be willing to give up an average of $7,600 in pay for a better situation at the office, such as more career development and a healthier work/life balance.” It appears that employees, especially younger ones, may be willing to sacrifice a fat paycheck for a meaningful career and more control over their work/life balance.
Businesses that use strategic benefits planning report more satisfied and engaged employees, fewer missed workdays, more effective recruitment and retention, and better company performance (SHRM).
Which Employee Benefits Are Most Important?
The first step in establishing company benefits involves some research. Take a look at businesses in your industry to get a general idea of what benefits you might want to offer. Once you have some ideas, partner with a PEO, such as Resourcing Edge to gain the competitive edge with a customized strategic benefits plan. Learn more about the benefits that employees want most.
Legally Required Benefits
Mandated benefits employers are required to provide include:
- Social Security, Medicare, and Federal Insurance Contributions (FICA) Unemployment Insurance
- Workers’ Compensation Insurance
- Health Insurance (per the Affordable Care Act, for companies with 50 or more full-time employees – see more information below)
- Family and Medical Leave (pursuant to the Family Medical Leave Act)
Some additional benefits pursuant to state and local laws include paid/unpaid time off to vote, for jury duty, and for military service. State and local requirements vary. Don’t even think about offering or excluding benefits without expert advice, which you can get from HR professionals at Resourcing Edge. Small and mid-sized businesses often fall into trouble because their benefits are full of costly errors.
Remember, while you may not be required to provide the following benefits, most companies will need to offer some or all of the benefits to remain competitive.
Health insurance is probably the number one most desirable benefit, but the high cost and complexity of healthcare and benefits programs cause many businesses to neglect or reject it. While health costs may seem prohibitive for smaller businesses, there are many different options for setting up a plan.
Larger employers may need to offer access to health insurance. The Patient Protection and Affordable Care Act (PPACA) requires employers with 50 or more full-time equivalents (FTE) to offer health insurance.
Because well-established PEOs have long-standing relationships with healthcare providers and can bundle employees into large groups, they can often negotiate better deals. In addition, Resourcing Edge is one of the select Professional Employer Organizations to partner with UnitedHealthcare to provide a comprehensive suite of medial plans as part of a master health plan.
Resourcing Edge covers you by providing affordable, Fortune 500-level benefits. This comprehensive benefit program we offer will help you attract and retain top talent.
Wellness programs are designed to improve employees’ health and work/life balance, but they can also include other aspects of well-being, such as social life and finances.
Wellness benefits can include onsite medical care, fitness centers, child care, sports courts, and spas. In addition to physical health, businesses are starting to think about financial, emotional, and mental wellness as well.
Paying attention to employee wellness and well-being is a win-win:
- Indirect costs due to missed work and associated productivity loss translates to approximately $1,685 per employee each year.
- Wellness benefits can help reduce the likelihood of employees developing 4 of the 10 most costly health conditions for U.S. employers — angina pectoris (chest pain), high blood pressure, diabetes, and heart attack.
401(k) and Retirement Benefits
A solid retirement plan makes employees feel better prepared and confident for the future. There may even be tax credits for launching retirement plans, such as a 401(k) plan, Saving Incentive Match Plan for Employees (SIMPLE) plan, or Simplified Employee Pension (SEP).
You may also want to consider lower-cost benefits such as education assistance, child care assistance, and ways to improve work/life balance.
Consider these free and lower-cost benefits:
- Access to technology
- Offsite and remote work option
- Paid time off for volunteer work
- Onsite yoga, meditation, and mindfulness
- Flexible schedules
- Education and career advancement opportunities (conferences, seminars, even university classes)
- Advanced technologies and improved organization
While not required, many businesses provide paid time off for major holidays. Learn more about whether you can and should require employees to take paid time off.
How Resourcing Edge Can Help
Don’t avoid offering benefits just because it seems too costly or complicated. And don’t let benefit plans burden your HR department.
Allow Resourcing Edge to save you time and money on benefits planning and administration, which plays a crucial role in creating a winning company culture. With a single point of contact and all your benefits managed in one easy-to-use platform, we can simplify things for your entire team.
PEOs can offer a slew of low and sometimes no-cost employee benefits such as:
- Medical, dental, and vision insurance plans
- Life insurance
- Short-term/long-term disability
- Employee assistance programs (EAP)
- Legal services
- Wellness programs
- Voluntary worksite programs
- Health savings accounts
- Flexible spending accounts
Working with a PEO to create a strategic benefits plan will increase engagement levels, improve retention rates, and make your organization more attractive to current and prospective employees.
If you feel like your budget doesn’t allow for big-business benefits, contact Resourcing Edge to learn more about robust, lower-cost benefits to recruit and retain top talent.
Ready to explore your employee benefits options?