7 Reasons You Should Offer Benefits for Employees

Much of the publicity surrounding employer-provided insurance centers around the idea that benefits place a huge financial burden on the business.

And while, yes, there are costs associated with health care benefits for employees, employers often fail to realize that offering health care is a great way to retain talent at every level.

Failing to provide health benefits might end up driving away qualified applicants and employees might not stick with you long-term, leaving in favor of competitors that bring more to the table.

1. Health Care Benefits for Employees Means Happy Employees

It should be a no-brainer, but most employees rank health insurance as being the number one benefit they can receive from their employer.

In fact, Glassdoor found that health insurance matters most to employees. As such, offering health insurance should be the first thing employers think about when trying to improve employee well-being.

If health benefits are a major priority, it should be a top priority for you. Offering a decent health plan can help with the recruiting process and encourage your existing talent to stay longer at your company.

2. Healthy Workers Are Productive Workers

Look, whether or not you care about the well-being of the people who work for you, preventative medicine has a direct effect on productivity. In fact, MetLife study found that offering company insurance did make a difference in employee productivity.

Healthy workers will miss fewer days of work, have fewer accidents and a better quality of life. Group health insurance plans work to keep people healthy long term, a real return on investment from an employer perspective.

Additionally, access to benefits can provide immense value to an aging workforce–helping them receive the care and prescription medication they need to stay healthy and remain in the workforce.

3. Company Health Insurance Can Mean a Reduction in Turnover

Again, a solid benefits package can help you attract and retain quality employees. People leave jobs when they feel dissatisfied or when something better comes along. Stand out among your competitors to keep top talent on hand.

And, you likely don’t need a reminder–training new hires is much more expensive than keeping the same reliable staff–employee benefits could equal big savings if you’re dealing with a high volume of departures.

4. The Tax Benefits are Real

While large businesses are reeling from the compliance requirements of the Affordable Care Act, only those with 50 or more employees are on the hook for benefits.

Smaller companies are exempt, but it might be worthwhile to take a second look.

Signing up for employee benefits means you can deduct your payments from your taxes. All employer contributions are tax-deductible, while employer payroll taxes are reduced by 7.65 percent when employees contribute to the plan.

Finally, it depends on who you ask, but some employees may prefer receiving health benefits over an increase in salary. In fact, a recent survey from Glassdoor showed that roughly 80% of employees would prefer that their employer provides additional benefits rather than a bump in salary.

5. Sticking Together Can Mean Access to Better Care

Group insurance networks are, by their very nature, more expensive than individual networks. What you’ll find on the healthcare exchanges is, buying insurance on your own often means that you’re paying more and getting less. That means less regarding access to doctors and in services covered.

Healthcare facilities that do not accept individual plans will often charge more for services, so people end up on the hook for high deductibles and co-pays.

Purchasing a group plan increases access for you and your staff. Meaning, better hospitals, better doctors, and lower prices.

Employees are going to be more likely to take advantage of their plan and go in for preventative services like physicals and flu shots. Again–we’re back to the healthy workforce point.

6. Boost Your Bottom Line

Offering great benefits is not only cheaper than providing a higher salary, but employees may also see higher value in more benefits over more pay.

The employer has a lower wage base–which comes in handy for unemployment on both the federal and state level.

Additionally, paying for benefits, as opposed to offering higher salaries can help you save money due to the amount you keep via tax cuts. You won’t be responsible for paying payroll taxes on health insurance or worker’s compensation.

If you’re looking at the cost of different plans, this company provides a good place to start comparing plans.

7. Health Care Can Help Show You Value Low Wage Employees

If cost is an issue and your employees know it, there are undeniably some tensions that arise as a result.

This is an especially big deal if you have several lower paid workers. Adding health care shows that you value the entry-level and lower wage workers you employ.

Not only will having access to medical care give this group a peace of mind in knowing they can care for their families, it also shows you care about them.

If you fail to provide any benefits for these people, lower-paid employees will feel as if they are treated like second-class citizens. These class-divisions can make it difficult to foster a collaborative environment. Tread lightly.

Want More Business Insights? You’ve Come to the Right Place

We’d like to think we’ve made a case for investing in company health care benefits. The ROI is undeniable here, and most employees agree that having access to health care trumps pay raises or the lunches and employee activities startups are known for.

Jcount is a startup blog that covers everything from health care benefits for employees to technology and how it’s changing the workplace. Click here to read more startup-focused articles.