To keep employees happy and retain top talent, forward-looking organizations across all industries must provide comprehensive employee benefits. So, why are employee benefits important, and what benefits do employees look for when applying for jobs?
How Important are Benefits to Employees?
The importance of employee benefits cannot be understated. The answer to “why are benefits important to employees?” is simple: They need to feel rewarded for their work and need more ways to support their families and lifestyles. Employers play a huge role in the way people are able to live their lives. Rather than asking “why are employees important?”, organizations should be asking “why are benefits important?” If you’re in doubt, here are some stats that highlight why employee benefits are essential:
- 49% of your employees will start looking for a new job within 12 months if they’re dissatisfied with the benefits offered.
- 78% of employees reported being more likely to stay in their current roles if the benefits are attractive.
- 75% of employees stressed not only the importance of employee benefits, but expressed a desire for more variety.
- 400% of an employee’s annual salary is what it could cost to replace a high level employee who leaves their role.
- 40% of employees said a company becomes more attractive if their benefits packages are tailored to them.
If you want to attract top talent, increase retention rates, boost morale, and employ a healthier workforce, you must offer an attractive benefits package.
6 Reasons Employers Should Care About Employee Benefits
Why are employee benefits important for the success of a company? Employers have many reasons to care about the importance of employee benefits as more attention is turning toward how organizations treat their workforces. Benefits are a show of loyalty and commitment to your team. If your organization is considering implementing benefits or reviewing the benefits currently on offer, here are some reasons why being generous with benefits can pay dividends to the company.
1. Attract the Best of the Best
A company lives or dies by the quality of its workforce. The most talented employees will never work for someone who fails to value them. With a hypercompetitive business landscape, attracting top talent should be a number one priority and a tempting benefits package is one of the most effective ways to do so.
2. Help Your Employees Outside of the Workplace
The COVID-19 pandemic has shone a harsh spotlight upon worker wellness nationwide. The importance of health benefits to employees is more important now than ever, and that includes more than offering health insurance and sick days. Extra vacation days support mental health, which is why many companies like Nike and Bumble gave their entire U.S. workforce a paid week off. As healthcare costs rise continuously, coverage for workers and their families is a huge selling point.
3. Better Health Means Better Work
The story of the employee who is sick yet comes into work because they can’t afford to take time off is an all too familiar one. A pervasive culture of presenteeism is not beneficial to employers. Giving health coverage to your employees and ensuring they care for themselves means you’ll get more from them because they’ll feel valued and motivated to work hard. Healthy workers can give their all every day, which translates to better results for the business.
4. More Productivity
Talented, healthy teams translate to more productivity. Teams that feel taken care of will give back by being more productive in their roles, rather than showing up and only doing the bare minimum. It’s no secret that superior benefits packages lead to more motivated workforces.
5. Higher Morale
Another illustration of how important benefits are to employees is demonstrated in the morale boost. Employees with better benefits are more likely to feel valued and that you care about their personal needs. In return, they’ll reciprocate with loyalty and higher job satisfaction, which makes your job as an employer easier when it comes to the management side of things.
6. Improve Your Company’s Reputation
Online and offline reputation management should be a priority for your company. Modern consumers have shown that they’re more willing to spend their money at a business that shares their values. A company that treats its workers badly is more likely to fall victim to a public relations scandal and lose business. One disgruntled employee is all it takes to cause a loss of revenue and customer loyalty.
So, why are employee benefits important? Because they not only keep your employees happy, they keep your business running smoothly. If you don’t have one already, it’s time to implement an attractive benefits package for the good of your company.
Employers are increasingly looking to help their teams improve their health and wellness. Eden’s integrated 360 care helps employees manage their primary and mental healthcare needs. Learn more about how Eden Health leads to better employee health by requesting a demo today.