How Important Are Employee Benefit Plans?

As an employer you understand that in order for your business to thrive, you need to hire quality employees. Once you’ve hired quality employees you need to foster a positive working environment. A great way to create an environment where your employees are content with their jobs and actually want to go to work everyday is by offering a comprehensive benefits plan.

How do benefits help employees?

When you offer benefits to your employees it creates a lower turnover rate because they know they are protected in case of emergency. For instance, if someone on your staff experiences a sudden illness, they will be covered by their employee benefits package and will be able to afford the medicine and treatment needed.

Many recent high school and university graduates who are just now entering the workforce look for companies that provide their employees with benefits packages with entry-level wages instead of higher salaries with no benefits. In Canada, although we have a health care system in place that is available to everyone in the country, employees with disabilities, or illnesses such as diabetes or depression that require daily medication, are more inclined to want to work for companies that offer benefits. It gives them peace of mind and in turn, increases productivity.

How do benefits help employers?

When you run a company, no matter the size, your goal is to produce a quality product or offer a much needed service. You cannot do that if you do not have qualified employees who actually care about what they’re doing.

In order to help make your employees enjoy their jobs, you need to provide them with a sense of security. By offering a benefits plan that includes medical and, if possible, dental and vision coverage, you are letting your employees know that you care about their wellbeing even when they are not at work. Obviously, you would prefer healthy employees that never take sick days, however, that is widely impossible.

When you give your employees a comprehensive benefits package that covers them and their families you are offering a sense of security. This helps nurture a creative and productive work environment at a low-cost to your organization. Premiums are generally tax deductible as a corporation expense, leading to savings for you and increased output from your employees.

The bottom line is this: Whether you run a small business or a large corporation, benefits plans are the key to fostering a positive work environment with less employee turnover and higher productivity. Benefits packages go a long way to protect your employees and your company’s future.