They think it’s too expensive or too much admin, forgetting that if you look after your employees and improve the all-round employee experience, they will be more motivated, more productive, take fewer sick days, and be less likely to leave. Hiring new staff on its own is an expensive exercise, so surely having a competitive range of employee benefits can only be good for your bottom line?
Here are some reasons why employee benefits are a good investment:
Having healthy employees surely means fewer sick days and improved productivity, however you can’t force your employees to be healthy. What you can do, though, is offer them every means to start that journey, including gym memberships, wellness programmes, lifestyle initiatives to focus on chronic conditions like cholesterol or diabetes, as well as onsite clinics or access to teleconsultations.
Another major factor to consider is not just the physical health of employees but also their mental wellbeing. According to the American Institute for Stress, the average turnover rate of employees in the USA is 18% - with 40-63% of this figure being due to stress, which means that stress accounts for on average 9% of employees leaving their jobs annually, costing American companies $300 billion a year.
This is huge, so ensuring that your employees have access to benefits that help improve overall wellbeing including not only work-related stress management but also financial, career and social wellbeing, can only improve your bottom line in the long run.
Employees that are not sufficiently engaged are detrimental to your bottom line, in that they will feel less motivated, take more time off and not do their jobs to the best of their ability. When you have a diverse group of people coming together it’s not always easy to ensure that they are working as a team, however offering a good benefits package is a great tool to bring people together.
According to Inc.com, increasing your investments in employee engagement by just 10% can increase your profits by an annual rate of $2400 per employee. Investing in a good benefits package is, therefore, an investment in a positive employee experience, which in turn improves productivity, creativity and cohesion.
Leading on from improved employee engagement, having good benefits also improves focus and productivity. After all, somebody who is worried about their health, childcare difficulties, or their financial situation is not going to give their best in the work environment, as they will be focusing on things in their personal lives.
Offering benefits that give your employees the ability to take care of things that are outside of the work environment will allow them to be more mentally present at work. Offering benefits such as child or pet care, onsite canteens or online meal vouchers, healthy snack bars and onsite or online gyms also means that your employees will spend less time away from their desks trying to sort these “life-admin” things out.
Offering good employee benefits is integral to attracting talent as the competition out there is tough. Everyone is looking for the next best thing, and if you can’t match the next company, you may lose out, which could impact your bottom line in the long run.
To run a business successfully, you need to be investing in attracting people that will not only be able to do the job, but who will also fit into your company culture. The recruitment process can be expensive, so offering benefits to attract certain types of people could cut your work in half.
For example, if you are looking for long-term, stable Gen X’s, you may want to offer good retirement options, family responsibility leave and chronic medical insurance, whereas Millennials may prefer flexible work hours, help with tuition or the option of remote working.
Working on an employee benefits plan that attracts different generations will improve not only your diversity but also positively impact retention,as there will be less desire to leave if your employees feel that their needs are being met.
According to a 2018 Aflac Workers Report, 96% of employees who are satisfied with their benefits are also satisfied with their jobs. Employee benefits also show a level of stability within a company, as being prepared to invest in your employees shows that you plan on being around for a long time, which means that your employees feel secure in their jobs.
This in turn has an impact on those that drive your business - your customers.
After all, the employee experience is linked to the customer experience, and satisfied employees will be more motivated to satisfy your customers, bringing repeat business and all-round loyalty, improving your bottom line.
Satisfied employees are also more likely to recommend your company to others,which could attract both customers and talent.
According to Investopedia, absenteeism in the workplace costs the American economy $84 billion per annum in lost productivity, the main causes cited as including stress and depression, low morale and disengagement, childcare responsibilities, job hunting and illness.
It makes absolute sense then that investing in a good benefits programme that includes things like stress management, gym memberships, flexible hours and assistance with childcare could improve retention and increase attendance.
Having good employee benefits also improves engagement and happiness, making it less likely that your employees will take time off due to boredom or looking for other opportunities, having a positive impact on your bottom line.
Employee benefits do require an initial investment, however, the cost of this is far less than the cost of ongoing recruitment processes and absenteeism. Having a range of attractive benefits will improve the health of your employees, their happiness and their engagement, building loyalty, high retention rates, an improved customer experience, and therefore your bottom line.