There are many factors that contribute to having a happy, productive workforce. Human resources experts could give you a list a mile long of why things like company culture, employee appreciation, and providing meaningful work for a living wage would be near the top of that list of factors. Group benefits, the ones that are optional, not the ones required by law, would also be up near the top of the list. Group coverage often fulfills more than one need for your employees and can be a powerful way to express the company’s gratitude and appreciation for all the work employees do. Providing these kinds of benefits can even be the thing that sets your company apart in the eyes of potential employees.
Here are 5 reasons small business owners should consider adding group benefits for their employees.
1. Providing Peace of Mind
Two of the most common group benefits are life insurance and disability insurance, both of which protect the financial future of the employee and/or their family. With these kinds of group benefits, employees can feel confident in their ability to support their family in trying times.
2. Cost Control
The group nature of the benefits helps keep the costs down which means the company can offer things like health insurance or dental coverage because they are affordable. It is also common practice to require that employees contribute toward the cost of many group benefits so that the costs are shared. When you add in cost savings you may achieve by reducing turnover, benefits make good financial sense for most businesses.
3. Tailored Solutions
Most insurance companies that provide this type of coverage will allow you to tailor the type of benefits you offer to meet the specific needs of your employees. Additionally, there are other things, like subsidized gym memberships, which can be counted under the group benefits umbrella that are not related to or provided by an insurance company.
4. Benefits Support
Many insurance programs offer support for their group benefits product lines that can provide real benefit to the business owner or manager. When a group benefits package comes with this kind of support, it alleviates the need for HR staff or business owners to take time away from other things in order to answer questions.
5. Recruiting and Employee Retention
One of the best reasons to offer group benefits is because benefits make employees happy and happy employees don’t leave for other opportunities. The cost to the company of finding, hiring, and training a new person is likely much higher than the company’s contribution to the cost of benefits for that role. If you are looking to attract the best and brightest people, you need to offer a work environment that doesn’t just compare with the completion, but surpasses it. Group benefits can be the thing that turns your job offer into a candidate’s best offer.
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