At some point when people quit school, they found a job, and moved up the ranks of the company until they reached the position they desired. It was not uncommon for employees to be able to spend their entire life with one employer. It’s often the case with little or no benefits for employees.
It’s true, it wasn’t that long ago.
It is now uncommon for employees to remain with the same firm from the time of the time of their apprenticeship until retirement. It is commonplace to join a company for a short time before achieving promotion through leaving one firm and transferring to another.
It’s also typical for employers to offer various benefits to employees in addition to salaries. intended to draw and retain top employees.
It was considered as a bargain to be offered an employee pension plan as well as paid holidays, as well as a company car. Today, employee benefits may still be offered and more, but they could also include important items such as:
complete medical, mental health dental and wellness insurance packages
life insurance
corporate credit schemes
Flextime
telecommuting
gym membership
creche in the workplace or child-care
All car schemes for employees
all the way down to fun events like dress-down day as well as Treat Tuesdays, Bring Your Pet days.
Click here for employee benefits solutions
Benefits of providing employee benefits
Retention and recruitment
As we’ve mentioned before that the aim of the game today is to find and retain top employees. An organization that is experiencing constant turnover of crucial employees is always at a constant state of fluctuation. The continuous recruiting and settling of new employees creates an unfavorable stop-start and has a sporadic effect on the progress of the company and expansion.
Naturally, there’s more to keep employees than providing them with complimentary Danish treats in their morning cup of coffee. But, creating extensive employee benefits programs can help in creating a comfortable environment for employees to remain.
The other businesses within your industry will be looking to follow suit and could also encourage your employees to join them. So, ensuring that you’re providing a fair job offer is crucial. The loss of a staff member could cost up to double the salary of that employee when it comes to the process of recruiting and training a replacement that’s why a decent benefits package starts to appear as a viable option.
It doesn’t have to cost a lot and will yield a return that is far greater than the investment.
More sick leave
For instance the private health insurance plans are extremely popular among employees. If you consider the cost of the coverage in relation to some days of sick time and loss of production as employees are waiting for NHS treatments, the advantages of employee health benefits begin to be apparent.
Health insurance has also proven to reduce absenteeism and increase employee morale. People who have insurance have a higher likelihood of seeking out preventative health care and lead healthier lives overall which means they spend less time away from working. Healthy and happy employees are productive, loyal and hardworking employees. They naturally have a positive effect on well-serviced and satisfied customers.
Because the overall health plan that you could obtain for your employees is going to be less expensive per person than private insurance for individuals so don’t forget to include yourself onto it and avail the best deal on your own health insurance.
Payroll bill for lower salaries
In most cases employees are content to accept a salary cut when their benefits package is satisfactory. Do it well and the cost of benefits offered to employees will be less than the expense of the salaried employee, thus saving the company cash.
Tax benefits
Companies can deduct the cost of employee medical insurance and life insurance and pension plan expenses from their tax liabilities.
The disadvantages of employee benefit plans
After having read the previous paragraphs you might be asking whether there’s any drawbacks for providing your staff with a comprehensive benefits package.
There aren’t many, and most of them apply to smaller companies.
Power purchase
The greater the purchasing capacity for products such as medical insurance the less the cost that can be bargained. Large companies are less likely to have issues in comparison to small ones naturally.
The rising cost
The cost of health insurance especially are rising each year, which could make it challenging for smaller companies in order to stay on top of the cost. Making the switch to get most affordable option can be difficult as it requires registering every employee of the company. Additionally, any health concerns that have arisen since the taking out the initial policy are unlikely to be covered by new policies.
Administrative expenses
Monitoring and implementing benefits can be a time-consuming process. As more benefit options your organization provides, the more time and expense is required in keeping everything running smoothly and up-to-date.
Conclusion
With the job market as it is now and the current employment market, it’s vital to provide your future and current employees an extensive array of benefits in order trying to draw them in and to retain them.
Deciding what you want to offer and ensuring the level of quality is a difficult procedure, but it’s essential for your employees in a position to be productive and happy.