Quality benefits are good for employers too
Written By Rick Visina and David Montgomery
The term "employee benefits" makes it sound like employees get all the advantages, and the employer makes all the sacrifices. In reality, offering a comprehensive insurance package is a win for both your business and employees.
Quality benefits are a powerful tool for retaining your best performers and attracting new employees. One industry study found 73 percent of employees highly satisfied with benefits were also satisfied with their jobs, while only 22 percent of employees dissatisfied with benefits were satisfied with their jobs. Forty percent of employees surveyed said benefits were a significant factor in their decision to stay with their employer.
Many talented, engaged workers know the intrinsic benefits of working for a small employer but need health coverage as much as the paycheck. Over the years, we've learned employees will often accept better benefits in lieu of a higher salary, especially those who are married and want the security of having their families insured.
In addition, it can actually cost less to provide health insurance than to pay a higher salary. Payroll taxes and contributions to retirement plans add significant costs to the salary expense. For example:
Federal and state unemployment
Many small business owners are surprised they can provide the same health coverage that larger companies provide. Unlike many of our competitors, Blue Cross Blue Shield of North Dakota offers the same health plan options to all employer groups.
Group health plans also ensure every employee has the opportunity to be covered regardless of health status. Employees are more likely to receive proper preventive care and manage chronic conditions when they have health insurance, which in turn has a positive effect on attendance and productivity. As an employer, you may also pay less for your own group health coverage than you would for an individual policy.
By offering additional benefits, such as life, dental, vision and disability insurance, you can set yourself apart from other employers. Group dental and vision plans are very affordable, especially when you consider what they mean to employees and your retention and recruiting efforts. A lot of these benefits are also available on a voluntary basis, so there is no cost to the business for offering them.
When employees are happy and healthy, everyone wins.