Offering benefits might seem optional for a company, but offering the right benefits is a crucial way to attract and retain top talent. You won’t be able to develop a strong company culture without it. Benefits reduce employee stress levels and makes your company a better place to work. Some employees even value good benefits packages more than their salary. They also help you improve your workforce diversity.
So, what benefits should you offer? Here are ten that make a huge difference.
Health insurance is the most important benefit for your company to offer. Without it, you will not be able to attract the talent you need and deserve. Lacking or inferior health insurance can force good employees to look for a new job if they or their family develop health issues. Furthermore, without insurance, your employees will put off routine medical care, which causes worse problems that result in them having to take more time off or, worse, becoming permanently disabled.
Regardless of whether you feel paid vacation is just an expensive luxury, employees who can’t take a vacation are more likely to burn out. That might lead them to quit, or worse, it develops a toxic workforce because people are miserable or complaining. Allowing employees at least some paid time off (and encouraging them to use it) makes a huge difference to your office environment. It reduces unscheduled absences and overall work quality. When somebody takes a vacation, you may notice whether a specific employee is either reducing productivity or has become too essential to operations. You might realize that you need to cross-train a couple of people in something only Joe has been doing.
Life insurance can be a major stress reliever, especially employees with children and family to worry about. Offer your employees the best life insurance you can. Try to choose a policy that allows for accelerated death benefits if somebody becomes chronically or terminally ill. Employer-provided life insurance is more affordable to your employees. They’re more likely to get this important coverage if it’s employer-subsidized.
Most Americans worry about retirement, increasingly among younger generations. Offering a retirement plan lowers your employees’ stress levels and allows them to focus more on the day-to-day. Employer contributions to retirement plans also get certain tax credits, which helps you reduce the costs. The IRS likes when employers offer retirement plans because it reduces the burden on the government when your employees retire.
Disability insurance is not discussed as often, despite being one of the most important benefits companies can offer. One out of every four adults will be disabled at some point, either permanently or temporarily. Short-term disability insurance also covers maternity leave, making it hugely convenient for employees starting families.
In some states, disability insurance is mandated, though many employees won't take the option. Consider an education program to get them to sign up for it. Disability insurance can help ensure that a valued employee is able to return after an extended period of time off work.
The most valuable employees are the ones who improve themselves by continuing to grow and learn. Allowing tuition assistance or continuing education assistance helps employees achieve that while reducing turnover.
Few employees will actually use this benefit, but those who do are often your most motivated and productive workers. Looking at who uses it is a great factor to consider when choosing who to promote. To improve diversity, consider a program where you pay tuition upfront for select classes rather than expecting employees to pay out of pocket, then be reimbursed.
Not every job can be done remotely and not every employee is suited to remote work. For those who are, offering full- or part-time remote work improves morale. Another benefit is that you can allow an employee with a cold to take a remote workday instead of sick time. That’s a convenience for when employees are contagious but well enough to get some work done. They won’t lose out on pay or use a vacation day, but they also won’t risk getting everyone else at the office sick.
Remote work also reduces your office expenses considerably. You’ll be able to downsize your office, saving your company overhead because employees won’t need a dedicated space all the time. You might have employees who come in on different days to share an office. It can make it easier to hire or retain employees in certain demographics or conditions. Parents with young children or people caring for an elderly relative will have less to worry about because they won’t need to worry as much about daycare or at-home caregivers.
Flexible spending accounts lower your employee’s healthcare costs without costing you much money. Specifically, the FSA reduces your employee's tax burden by allowing them to make pre-tax contributions to the FSA. These can then be used to pay for medical expenses not covered by insurance. It’s useful in situations where they're over the limit, or your insurance plan doesn't cover your treatment.
FSAs are particularly popular with employees who have specific recurring expenses insurance doesn’t cover. For instance, employees who wear glasses can pay for them using an FSA. If they have a child in orthodontic treatment or are taking multiple medications can also pay using their FSA.
Most states require at least some level of workers' comp insurance. Even if they don't, though, this is a vital benefit to offer. Not only will it help your employees survive if they are injured and unable to work for a while, but it will also help make sure they don't sue you in the event of an accident. This can rapidly become a lot more expensive than offering a decent workers' comp plan.
A lot of employees like to have a flexible work schedule. If you live in an area with a lot of traffic, staggering work hours can reduce the length of an employee's commute, saving them money and time. This improves productivity because it reduces the stress of getting to work (and lets them sleep more).
Flexible hours also allow employees to choose a work schedule that works with their circadian rhythm, allows them to get the kids to the bus stop, and decreases childcare costs. Overall, flexible hours increase morale and reduce tardiness and absenteeism. For example, an employee who's always late/slow in the morning should be asked about moving to a slightly later shift.
Offering these benefits can help you attract and retain top talent, improve diversity in your office (which improves morale and productivity), reduce absenteeism and turnover, and overall develop a company culture that puts employees first.