If you own a business, you probably have some understanding of how a quality benefits package can help you land and keep the best employees in your industry. What often gets lost, however, is the true impact that good group benefits can have on the overall culture of your business, which can be a tool for recruitment in its own right. In the section below, we’ll take a look at how a properly structured benefits package can help create a positive work environment, improve employee morale, draw interest from top candidates, and provide tax breaks for employees and businesses.
Recruitment & Retention – This is at the top of the list for most employers and can be easily understood as an important factor if you hope to remain competitive. By offering a benefits plan that meets or exceeds other offers an employee may receive, you drastically improve you chances of landing that important hire. Surveys across multiple industries increasingly show that the benefits that matter most to prospective employees are medical coverage and paid time off–benefits that more than 70% of employees rank as the most important when considering a new position.
Positive Work Culture – A positive work culture is more than just a pleasant sounding name for a good place to work; it’s become an essential element of plans designed to maximize the reach of hiring practices. Side effects of a positive work culture include company benefits like improved attitude and employee morale, a sense of more security among employees (especially if dependent coverage is part of the benefits offering), and less turnover and training costs to your business. For more information about how work culture can affect hiring, see this article from Monster.com.
The best way to leverage company culture is by offering a combination of essential health benefits, along with other perks that are valued by employees. The following list includes the most important aspects of a positive work culture according to employees:
Tax Benefits – The tax benefits of offering employer-sponsored benefits go both ways: they can be beneficial to employee’s personal finances, as well as the bottom line for the company. A well-designed plan will provide financial relief to employees for their portion of premiums, while still providing a tax deduction for businesses that pay toward premiums on behalf of workers. Employees benefit from using pretax earnings to offset medical costs, while employers can realize significant savings through reduced payroll taxes. Click here to visit the Small Business Majority and learn more about potential tax savings for employers under the Affordable Care Act.
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