5 Reasons Offering Employee Benefits Is so Valuable - BenefitMall
The United States is unique in that the majority of benefits provided by employers are not mandated by law. We are also unique in some of the non-traditional benefits now being offered, like student loan repayment assistance. So to compare worker benefits in the U.S. with those in other countries is like comparing apples and oranges. Visit: https://employers.benefitmall.com/blog/employee-benefits-your-recruiting-secret-weapon
The United States is unique in that the majority of benefits provided by employers are not mandated by law. We are also unique in some of the non-traditional benefits now being offered, like student loan repayment assistance. So to compare worker benefits in the U.S. with those in other countries is like comparing apples and oranges. Visit: https://employers.benefitmall.com/blog/employee-benefits-your-recruiting-secret-weapon
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5 <strong>Rea<strong>so</strong>ns</strong> <strong>Offering</strong> <strong>Employee</strong> <strong>Benefits</strong> <strong>Is</strong> <strong>so</strong> <strong>Valuable</strong><br />
The United States is unique in that the majority of benefits provided by employers are not mandated by law. We are al<strong>so</strong><br />
unique in <strong>so</strong>me of the non-traditional benefits now being offered, like student loan repayment assistance. So to<br />
compare worker benefits in the U.S. with those in other countries is like comparing apples and oranges.<br />
One thing we know is that employee benefits are important. There are al<strong>so</strong> valuable. They are valuable to both<br />
employers and employees alike. Here are five rea<strong>so</strong>ns explaining why:<br />
1. Some Are Mandatory<br />
Although the total number of mandated employee benefits in the U.S. is comparatively small, they still exist. Health<br />
insurance is one of them. Under the Affordable Care Act, most U.S. employers must offer their workers a qualifying<br />
health insurance plan. In <strong>so</strong>me states, paid family leave is al<strong>so</strong> mandated. There is plenty a value in not running afoul of<br />
the law.<br />
2. Value Can Exceed Actual Pay<br />
Next, consider the reality that the value of a given benefit can exceed the amount of pay that goes into covering it.<br />
Again, health insurance is a good example. Let us say a company pays $600 per month, per employee, for health<br />
insurance. Giving that same money to workers as cash would mean an extra $7,200 in their paychecks. That <strong>so</strong>unds fine,<br />
until one of them has a car accident requiring an extensive hospital stay.<br />
The total cost for that employee's care could easily approach $100,000. That is money the worker does not have to pay.<br />
Moreover, the combined employer and employee contributions to health insurance are still significantly less than the<br />
total cost of the worker's care.
3. <strong>Employee</strong>s Expect to Receive <strong>Benefits</strong><br />
The third rea<strong>so</strong>n is the fact that employees now expect to receive benefits. That may not have been the case 30 or 40<br />
years ago, but it is the case in 2019. We have used benefits packages as a recruiting tool for <strong>so</strong> long that they have<br />
become the norm. Attempting to recruit without offering benefits only makes the job harder.<br />
4. <strong>Benefits</strong> Make a Company More Competitive<br />
Hand-in-hand with employee expectations is the recruiting edge benefits can give an employer. It is all about competing.<br />
The more competitive an employer's benefits are, the greater the company's chances of landing top talent. Such is the<br />
nature of competition.<br />
If you have two companies offering roughly the same compensation package but different benefits, most job candidates<br />
are going to go with the better benefits. Some recruits might even be willing to accept a slightly lower salary in exchange<br />
for a better benefits package.<br />
5. Nonstandard <strong>Benefits</strong> Increase Loyalty<br />
Finally, employees want to work for companies who value them. This is not new. Business owners have long known that<br />
their workers will not be loyal if they don't feel as though their employers truly care about them. The question is really<br />
just how loyal employers want their workers to be.<br />
The wisest company owners know that nonstandard benefits are one way to increase loyalty. They know that going<br />
above and beyond health insurance and a 401(k) plan can make a real difference in making employees feel like they are<br />
valued. That's where benefits like flexible scheduling, unlimited PTO, and student loan reimbursement assistance come<br />
into play.<br />
It's hard to imagine anything other than an entry-level position not offering benefits in the modern era. Where job<br />
seekers are concerned, finding a job is as much about benefits as it is salary. And from the employer's perspective, you<br />
need a good benefits package to compete for top talent. That's just the way it is.