Many business owners will agree that an employee benefit package is one of the best ways to attract and retain top talent. It not only instills an employee's trust in the company, it’s also often a business owner's most necessary investment.
While business owners constantly try to find ways to reduce their expenses and increase profit margins, opting out of group benefits is in fact the opposite of a smart financial move. To that end, a survey conducted by Glassdoor found that 79% of those surveyed preferred employee benefits over a higher salary. It's quite an eye-opening sentiment that clearly indicates what your employees find important. Here are the 4 top reasons small-business owners should offer group benefits:
1. To retain and attract talent
A good benefits package is one of the best ways to attract and retain top talent to your company. Although money is certainly an incentive, in-demand employees are looking for more than just substantial salary offers. They're looking at employee satisfaction and turnover rates, quality of life and a positive work environment. Those factors are often connected to a good group benefit package and the peace of mind it provides.
2. To protect your most important asset
Your employees and their health are your most important asset. While Canadians have some protection under our national healthcare program, there are a lot of unforeseen costs and financial worries associated with long-term illness and accident-related emergencies. Making certain your employees and their families are protected and healthy is a long-term investment that your employees will appreciate and factor in when considering a potential move.
3. To maintain productivity
Comprehensive benefits and wellness packages ensure a variety of tools and resources are available for various health-related situations, ranging from dental care and mental wellness services to employee assistance programs that make it easier for your workforce to get the help they need, so they can focus on work. Happy, focused, stress-free employees are productive employees.
4. To build and maintain morale and loyalty
Group benefits help increase morale and long-term loyalty in a company. When employees feel like they are more than just a number, like their employer appreciates them and has their back, they are more loyal to their boss, their company and its long-term goals. Retaining experienced employees who know and understand the company and its particular demands is vital for success. High turnover not only instills distrust and disloyalty, it also breeds low morale and work dissatisfaction.
- For more about attracting and retaining employees for your small business, watch How to keep your employees happy (Video)