Employee benefits are no longer just a perk or an added bonus to employees, but has become a strategic necessity. Prospective employees are no longer just looking at the salary offer  but are evaluating the benefits and how they contribute or take away from the company, highly influencing their response to the job offer. Companies that invest in strong employee benefits packages are able to experience a wide range of advantages, which we will discuss below. Our expert team has compiled a list of benefits to help answer the question why offer employee benefits. Keep reading to learn more. 

Attract and Retain Top Talent

One of the top benefits to why offer employee benefits is the ability for companies to attract and retain top talent. It’s no secret that the job market is highly competitive right now. Sometimes a top performing candidate can be torn between multiple job offers and what can set your company apart from the competition is a comprehensive benefits package. In fact, in PeopleKeep’s 2024 survey, they found that 81% of employees said the benefits package is an important part of considering a job. While generous salaries are great at attracting and retaining talent, don’t forget the advantages benefits provide. They may not be monetary but they are still essential to the lives of your employees. 

Businesses should also be sure to not neglect their current employees when looking at their benefits packages. When employees feel valued at a company, they are more likely to remain loyal. This loyalty reduces turnover (which can save a company a lot of money in the long run), and ensures your top performing employees aren’t seeking employment elsewhere. 

Boost Employee Productivity and Morale

Now that you have secured and retained top talent, it’s essential to maintain the benefits. Hiring isn’t the only answer to the question why offer employee benefits, in fact, benefits also play a significant role in boosting employee productivity and morale. When an employee feels they are taken care of and valued by an organization, they are more likely to buy-in to the goals of the company and can become more motivated and engaged in their work. For example, mental and physical wellness programs encourage employees to prioritize their body and mind, which can reduce the number of sick days or personal days they need, increasing the output of work your organization can achieve. 

Furthermore, benefits like paid time off, flexible working hours, and retirement plans allow employees to establish a healthier work-life balance. Having separation of work and personal time is crucial for preventing burnout, which is a main contributor to decreased productivity and job dissatisfaction. Employees who are satisfied with their benefits package are more likely to strongly perform their roles, leading the company to higher levels of success. 

Promote a Positive Workplace Culture

Attractive employee benefits packages can also help promote a positive workplace culture. When benefits focus on employee well-being, such as health insurance, enhanced flexibility, wellness programs, etc., the leadership of the organization is signaling to employees that they care about their lives off the clock and their overall well-being. This care creates an environment built on trust and respect, which is imperative for a workplace environment to be positive. 

A strong company culture attracts like-minded individuals who are more likely to succeed in that environment. The value alignment between a company, its leadership, and employees can lead to higher job satisfaction and loyalty. In turn, the company’s reputation can improve, making it easier to attract the top talent, as discussed above. A strong culture can even  attract customers who value ethical business practices. 

Ensure Compliance with Legal Requirements

If you are still wondering why offer employee benefits, have you considered the compliance with legal requirements. Offering certain employee benefits is not just a choice for a legal requirement. For example, the Affordable Care Act (ACA) in the United States mandates that employers with 50 or more full-time employees must offer health insurance that meets minimum value and affordability standards. If a company fails to comply with these regulations, they can face significant penalties and legal challenges. However, by offering benefits that meet or exceed legal requirements, companies can avoid these potential pitfalls and ensure full compliance. This adherence to compliance not only prevents them from facing legal challenges, but can improve the organization’s trustworthiness in the eyes of the employees, customers, and even the general public. At Canal HR, our team of experts will work with your team to ensure compliance is met across the board, giving you enhanced peace of mind! 

Reduce Employee Financial Stress 

Financial stress is a significant concern for many employees, especially in today’s economy where while inflation is going down, it’s still high. This stress can negatively impact an employee’s mental health and ability to work. Benefits such as, but not limited to, retirement plans, life insurance, disability coverage, and cancer insurance can provide employees with a sense of financial security. Additionally, having your employee benefits package include 401(k) retirement plans can help employees save for their future, reducing worries about long-term financial stability. 

Strengthen Employee-Employer Relationship

Another reason as to why offer employee benefits is the ability for these packages to strengthen the relationship an employer is able to develop with employees. A robust package shows employees they are valued, which as we noted above increases trust but also builds mutual respect. Plus, employees will feel their employers are genuinely invested in them and not just the work they produce, which can lead to them communicating openly about needs, leading to better problem-solving, more innovative ideas, and a stronger overall team dynamic. 

Still Wondering Why Offer Employee Benefits? Let Canal HR Help

Offering employee benefits is a multifaceted strategy that can enhance a company’s ability to attract and retain top talent, boost productivity, promote a strong workplace culture, and more. In today’s competitive business landscape, benefits are not just a nice to have added benefit, but a crucial component to a successful business strategy. By investing in a comprehensive benefits package, companies can ensure they have happy, healthy, and motivated employees. 
To build out your benefits package or ensure your organization is providing the best package possible, contact us today. At Canal HR, we will work to ensure your employees’ needs are met at a cost that is reasonable for your organization.