Employee benefits help cover the cost of health care services that the public system does not pay for. Examples of such expenses include dental care, prescription drugs, eyeglasses and eye exams, travel insurance, massage, physiotherapy, speech therapy and many other medical services and products. In fact, research shows that an employee benefit plan is a strong deciding factor when deciding on a job offer. Moreover, benefits are a significant incentive to stay with the current employer.
Let’s examine the top 3 reasons why employee benefits are important for your business.
1. Taking Care of Your Most Valuable Asset, Your People
Most employers agree that employees are the most important part of their business and that taking care of them is essential. A happy employee is more productive. When we feel less stress in our personal lives, we are bound to be more focused at work.
With this understanding that employees are their most important asset, more and more organizations are recognizing the value of making it easy for their people to come into work. Whether it’s offering on-site perks, recreational spaces, or a well thought out benefits plan, this approach tells the employee that their employer cares about them.
2. Retaining and Attracting the Best Employees
In the past, employers saw benefit plans as a helpful part of the hiring process. In contrast, in today’s competitive hiring landscape, benefits are not just wanted, but expected. Candidates are asking about a company’s benefits plan early on in the hiring process. There is an expectation that the employer will provide a robust plan – and even more importantly, that it will include specific coverage that is relevant to the employee.
Moreover, both employers and employees have become more educated and knowledgeable about benefits. The very act of someone asking about a plan indicates that they’ve had experience with a situation in the past where a specific claim was or was not covered. A prospective employee may not have a full picture or understanding of all the details of a benefits plan, but they will want to know what the plan covers based on on what’s important to them.
Equally important, employees working for a company are also more likely to stay with their employer if the benefits plan is competitive in comparison to other prospective hirers. Remember that taking care of your most valuable asset, your people, can be as simple as communicating how important they are to you with an employee benefits plan that caters to their needs.
3. Increased Awareness and Education About Plans
Since the beginning of the COVID-19 pandemic, we’ve seen a rise in the use of benefits plans by employees. This in turn increased both employers’ and employees’ understanding as to why employee benefits are so important. From sick leave to mental health services, workers started to rely on their benefit plans more and more. This Leads to raised awareness about what makes a good employee benefits plan.
Employers should expect both employees and prospective hires to be highly literate and educated about what a plan should include. This level of awareness on the need for a benefits plan that meets the needs of diverse employee demographics, has increased and it will continue to be important in the future.
Employee benefits plans are an important part of an employer’s business for a variety of reasons. They communicate to your people that you care about them and help you to take care of them. As a result, you can attract and retain happier and more productive employees. Education, awareness, and a deeper understanding of what makes a good plan is on the rise with COVID-19. This trend isn’t going away, so it’s essential to have a robust plan.
Have questions? Get in touch with us to talk through your employee benefits plan today!