As a small business owner, you undoubtedly want to see your business grow. While it’s no secret that maximizing sales and minimizing expenses are key to growing a profitable enterprise, offering employee benefits can play a vital role in business growth.
3 Reasons Why You Should Consider Offering Employee Benefits
Recruit new employees – The job market today is highly competitive. Offering benefits may be the deciding factor for a potential candidate that’s also considering working for a competitor. Statistics show that when hiring new employees, companies are more likely to recruit a highly-skilled employee if they offer benefits. In a recent survey conducted by Harvard Business Review Analytic Services, 60% of human resource leaders said an attractive benefits package is “very important” in recruiting and retaining quality employees.
Retain employees/reduce turnover – Along with recruiting the right employees, offering a full suite of benefits also helps you retain your top talent. As a small business owner, you may have experienced the pain of losing a star employee to another company that’s offered better salary or benefits. You are probably also painfully acquainted with the high cost of employee turnover. According to the Society for Human Resources Management, direct replacement costs can reach as high as 50%-60% of an employee’s annual salary. Paying up to 60% of an employee’s salary to replace them can cause major financial hardship for a small business. However, with competitive compensation and benefits, employees are more likely to stay onboard with their current company.
Employee happiness – The satisfaction of your employees is crucial for small businesses growth. Have you ever heard the saying, a happy staff is a productive staff? When your employees are happy in their environment, not only are they more likely to stay at your company, but they are also more likely to produce more for your company. Having benefits makes your employees feel like they are appreciated, and communicates your care as a leader for them and their families.
You may be surprised to learn that many benefits can be offered to your staff at little or no cost to the business, especially when sourced through a partnership with a Professional Employer Organization (PEO). You can also choose to offer a limited number of benefits to start, and then ramp up to a robust benefit offering over time. Additionally, there are ancillary employee benefits such as dental insurance, vision insurance, long-term & short-term disability coverage, and life insurance that can be affordably offered to employees on a voluntary basis; and without any required employer contribution.
For more information on employee benefits, as well as other PEO service offerings, download our free guide, The Best Kept Secret for Small Business Success.