More Than the Bottom Line: What Benefits Really Mean to Employees

We all know the importance of benefit offerings. They are often the best way to get top talent in the door and keep them there. Your benefits should set you apart from competitors and be affordable enough for even your lowest-paid employees to use. There is no one-size-fits-all package: some people prefer more money in their paycheck and less in their HSA; some prefer lower healthcare costs over PTO. Somewhere in the middle lies the optimized package for your employee demographic.

But what are the lesser-known implications of a less-than-impressive benefits package?

1. Employee retention and the cost of turnover

It's not enough to attract top industry talent; you need to keep them. Some studies estimate the cost of replacing a salaried employee at six to nine months' salary. Others put it at twice their salary, especially for high-earning or executive-level employees. Improving benefits is one of the most tangible ways to reduce turnover, thanks to the ripple effect it has on the employee and the company as a whole. Within the package, health insurance ranks as the most important benefit in the eyes of current and potential employees. If you're going to revamp your benefits, that's the place to start.

2. Employee productivity

Affordable, comprehensive benefits have a direct effect on employee satisfaction and productivity. Studies show that a balanced health package decreases absenteeism and improves overall employee health. Those with access to affordable healthcare are more likely to seek preventive care and treatment for low-acuity conditions that would otherwise turn into hefty claims. That carries over into their work lives: more productive, more present, and with a better outlook on the company they work for.

3. Employee morale

We've all seen what low morale does to a company, and what a company that openly appreciates its employees does for the customer experience. How you show appreciation should depend on your employee demographics, and there's plenty of room to get creative: a supplemental mobile telehealth benefit with mobile diagnostics, discounts at local gyms and wellness facilities, or more PTO options. Think outside the box when evaluating your package.

Summary

A comprehensive, affordable benefits package increases productivity, retention, and ultimately your bottom line. It can attract top talent or be the reason they accept a position with your competitor. When it's time to renew or rethink your offerings, keep in mind the ways they affect ROI and employee happiness. It makes all the difference for your employees and your business.