The Benefit of Offering Benefits
Hiring the right employee who fits well with your corporate culture and will be a part of the team driving your business to success is certainly a challenge, and in some regions very competitive.Â To add to the struggle is then the retention of current employees â€“ according to a recent ADP Research Institute report, 60% of employee turnover is voluntary.Â High turnover equals high losses for a business, it costs nearly 20% of an employeeâ€™s annual salary to replace an employee.Â To replace a $50,000/year employee can cost you $10,000 each time the need arises.Â A strategic, quality benefits package can help you attract and retain top employees, and in the end save you money.
Many employees highly regard a well-balanced selection of benefits.Â Health insurance, life insurance, dental and vision coverage, and 401(k) plans are just a few plans to consider offering.Â A robust benefits package as a part of overall compensation offers value to your employees, both current and future, thereby boosting productivity and retention in a very cost-effective manner.
Developing a strategic benefits package can help attract candidates, is appreciated by your current employees, and can serve as a huge advantage to a retention strategy because it holds more than just monetary value for employees.Â A bigger salary at another company may not be enough to pull employees away from you if their overall benefits package isnâ€™t as attractive as yours.Â Many employees are willing to accept a highly valuable benefits package in lieu of a slightly higher salary.
A good benefits package can lead to:
- Satisfied employees with higher morale and desire to succeed,
- Employees who find value in their benefits are typically more loyal and willing to commit to their company,
- An employee who feels valued leads to increased productivity and decreased absenteeism.
When your benefits package includes a combination of health insurance and dental and vision coverage, you will have employees who are able to be proactive with managing their health.Â Easy, affordable access to health care can reduce absenteeism due to illness, and healthy employees are more beneficial to your companyâ€™s overall productivity. Rounding out your benefits package with 401(k) plans, long-term disability, identity theft protection, and student loan repayment benefits are just some of the voluntary insurance options available in the marketplace.
Always think long-term when you are developing, or even adding to a current benefits program.Â If you are thinking of skimping on benefits to save a little money, you will most certainly then face the consequences of increased difficulty retaining your top performers, low morale, productivity and absenteeism, and reduced ability of attracting and hiring top talent in your field.Â When a company offers an array of benefits to their employees, the strategy will pay off with a stronger, more productive and committed workforce.
To speak with one of our advisors about developing an employee benefits program, or to discuss improving your current benefits program, contact Billy MacNair, Vice President of Employee Benefits at Brown & Brown Benefit Advisors at email@example.com.