Five Reasons to Offer Benefits to Your Employees
There are many reasons why a company should offer employee benefits to its people. Employee benefits can be extended healthcare like dental plans, prescription drugs, vision care, and much more. Paying for insurance to cover income replacement such as critical illness insurance is part of the norm. Unlike my grandfather who received a Longines watch upon retiring in 1955, today employee benefits can include paying into employees retirement plans such as RRSP, Lif, etc.
80% of employees said they would prefer employee benefits, like extended healthcare over a raise.
1. Able to attract and retain quality people in a very competitive market.
Many employees will leave to a company that offers not only benefits, but if the benefits are better than the current one being offered. Lower turnover rate.
2. Employee Engagement
According to Gallup, businesses that have engaged employees are 21% more profitable and 18% more productive. When you show your employees that you care, you empower them to take ownership so to speak in your company. It becomes more than just a job. Resulting in loyalty, increased profits and better production.
3. Employees would prefer a good benefits plan over a raise
Without the proper benefits, your employees have to pay for dental, prescriptions and more out of their pocket, resulting in less usable income and adding pressure to them.
4. Tax-Free Raise to your employees
Your employees would have to pay income tax on a pay raise, with benefits they don’t. ???
5. Tax Benefits to your Company other savings
Benefits like extended healthcare are 100% deductible, unlike other employee benefits. It’s better than giving a raise where you will have to pay your portion of CPP and Unemployment Insurance; and 100% of Workplace Safe & Insurance Board (WSIB), and with benefits you don’t.
