Reasons for Employee Benefits

As a small-business owner, you have to make a wealth of decisions related to your business, from how to market your product or service to how to manage your employees. One employee-related decision is what employee benefits you will offer, from health insurance to a retirement plan to paid time off. Offering a competitive benefits package has a number of advantages for your small business.

Employee Acquitision

Offering employee benefits makes your small business a competitive one when it comes to securing qualified employees. Just as you weigh a job candidate’s strengths and weaknesses, a potential employee considers the advantages and disadvantages of accepting a position with your small business. A competitive benefits package can attract high-quality employees. Since a strong staff is essential to your business’ success, offering benefits is a must.

Employee Retention

If you select an above-average benefits plan for your employees, it can go a long way in keeping employees at your small business. Employees who are searching for another job have to consider the offer in its entirety, not just compare salaries. A competitive benefits package can be enough to keep an employee around. A job offer for $5,000 more a year doesn’t go a long way if the employee has to pay in full for health insurance for him and his family.

Respect

Offering benefits shows your employees that you understand and respect their needs. Going without health insurance can be a risky decision, so if you offer a benefits package that includes health insurance, you are showing your employees your concern for their well-being. Moreover, a benefits package that includes paid time off, in the form of both vacation time and sick time, shows your employees that you understand the importance of rest and relaxation.

Health

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Offering benefits can also keep your employees healthy, which can improve the efficiency and productivity of your small business. Employees who have health insurance will likely see their doctors more regularly than those who are uninsured. They will treat illnesses rather than coming into work sick and potentially infecting the entire office. They will have well-visit exams annually, which can catch any serious illnesses early.

Employee Attitude

Having a competitive benefits plan will improve employees’ attitudes about their job. Employees will appreciate having these benefits and, therefore, will value their job more. Employees with a positive attitude contribute to company morale and work productively to ensure their job is secure.