If you are an employer or a human resources executive, you know that certain employee benefits are mandatory under federal or state laws. These benefits include unemployment insurance, workers’ compensation insurance, and unpaid family and medical leave. Aside from a salary, work schedule and hours, and the responsibilities that come with a job, benefits represent one of the most appealing aspects of a career opportunity.
Top Reasons To Offer Employee Benefits
According to a 2018 survey conducted by the American Institute of CPAs (accountants), 80% of employees said they would choose a position with benefits over an identical job that offered a 30% higher salary but no benefits. There are several reasons why benefits are important to both employees and employers. Here are five top ways you and your employees can gain from offering benefits.
Acquisition Of Top Talent
As an employer or HR leader, you always strive to ensure that you are hiring the most qualified and talented workers for each open position. One of the most effective ways to reward such top talent is by offering your employees benefits.
Benefits serve as a way to show employees how valuable they are and serve as a form of protection when certain events (illness, injury, pregnancy, etc.) alter their life in any way.
Improving Employee Retention
If you continue to provide basic benefits year after year, your employees will likely be motivated to stay with your company for a long time. This is especially true if your organization is prepared to offer benefits even during times when it is experiencing financial hardship. Failure to provide such benefits can contribute to attrition, which occurs when an organization loses workers (who are not immediately replaced) via a natural process such as resignation or retirement.
Reducing The Employee Turnover Rate
Many studies reveal a strong link between benefits and employee turnover rates. According to Work Institute’s 2017 Retention Report, 9% of employees surveyed named “compensation and benefits” as a reason for leaving their company. This report also estimated that it can cost as much as 33% of an employee’s yearly salary to replace this worker. Therefore, never underestimate the impact that benefits can have on employee turnover.
Retaining High Employee Morale
Research also demonstrates that employees’ morale and overall satisfaction improves when they receive benefits. According to smallbizgenius, a resource for small businesses, 72% of surveyed workers stated that “having more work benefits would increase their job satisfaction.” Many employees also say that having superiors who show appreciation for their workers also leads to higher satisfaction, and providing benefits is one way to do this.
Enhancing Employee Loyalty To The Company
A satisfied employee is generally more likely to be more loyal to your organization than a disgruntled worker. If an employee becomes frustrated with a company because of its failure to provide high-quality (or any) benefits, he/she may abruptly resign and criticize the business and consequently contribute to fewer people applying for open positions at the organization.
How Do I Acquire Employee Benefits?
Before you acquire employee benefits, you should review your company’s objectives and budget to determine how much you can afford to offer. This process is called performing a cost-benefit analysis. You should also inform yourself on which benefits are mandatory under federal and your state’s laws. If necessary, compile a report that outlines all of this information. After you have done this, contact a reputable insurance agency that provides these employee benefits.
Speak To An Experienced Employee Benefits Firm
Reach out to the experienced professionals at New City Insurance in San Diego, California for more information on the importance of employee benefits. Since our founding in 2008, we have strived to reshape the insurance industry and provide our clients with personalized, high-value solutions that address their unique needs and concerns.
Regarding employee benefits, New City Insurance offers benefits such as 401k and retirement plans, executive benefits (asset allocation, wealth planning, etc.), group health insurance, benefits for PEOs (professional employer organizations), and wellness plans. All of these options are designed to help your business’s employees achieve their financial goals in life and consequently maintain a strong relationship with you. We have experience working with many different types of industries, including the aerospace, biotech, engineering, cannabis, IT, manufacturing, and oil and gas sectors.
No matter what your organization’s goals and budget are, New City is prepared to do everything possible to ensure that your business can offer your employees benefits that will give them a reason to stay with you for as long as possible. Call New City Insurance today at 888.210.2759 or contact us online to schedule a consultation with one of our qualified agents.