Offering full-time employees benefits is par for the course. It’s expected. And just providing the minimum won’t go far if you want employees to stick around. Your benefits package can have broad-reaching impacts throughout your organization. We’re talking high turnover rates, low morale, and a workforce that’s less than thrilled to show up every day.
But you have the power to change the way your employees feel about work simply by improving the benefits you offer. Let’s dive into why your benefits package plays such a huge role in your company’s success and how to make it work for you.
Benefits Improve Employee Retention
Consider the following scenario: You’ve invested months training a new hire. Just as they’re hitting their stride and starting to make real contributions to the team, they hand in their resignation. Sound familiar? High turnover rates are one of the most expensive challenges businesses face, and a subpar benefits package is often to blame.
According to the Society for Human Resource Management (SHRM)1, replacing an employee can cost up to 50-60% of their annual salary. And that is just the cost to fill the vacancy they’ve left behind. Factor in lost productivity, team morale, and the time it takes to onboard a replacement, and those costs skyrocket.
Employees want to feel valued, and a competitive benefits package is one of the most effective ways to show them that you do. By providing comprehensive health insurance, matching retirement contributions, and other perks, you’re not just giving them reasons to stay—you’re also building a workforce that’s loyal and invested in your company’s success.
Benefits Boost Morale and Engagement
Ever notice how employees work harder when they feel appreciated? Benefits play a significant role in shaping how your team views their job. They’re not just benefits—they’re a way of saying, “We appreciate you and your contributions.” When people know their health, financial stability, and work-life balance are a priority to their employer, they’re happier and more engaged. And engagement matters. A Gallup Poll2 showed that companies with an engaged workforce are 21% more productive than those with disengaged employees.
A lackluster benefits package sends the message that your team’s well-being isn’t a priority. This can lead to dissatisfaction, low morale, and, ultimately, a lack of motivation. Over time, this disengagement affects not just individual performance but also team dynamics and overall productivity. However, a thoughtful and thorough benefits package can boost morale, enhance productivity, and create a positive workplace culture that motivates everyone to bring their A-game to support the team.
Benefits Attract Talent
There’s no question that the job market is competitive, and talented professionals often have multiple offers on the table. So, how do you make sure your company stands out? Benefits. In fact, nearly 70% of professionals say they’d change jobs to get better benefits, according to the Economist Group3. If you’re not offering a competitive benefits package, you’re not just losing out on candidates—you’re losing out on the best candidates.
A leading benefits package acts as a magnet for top talent. It shows that you’re serious about their future and committed to their well-being. And it’s not just about attracting new hires—a strong benefits package also helps you retain the amazing team you already have. When employees know they’re supported, they’re more likely to stay, grow with the company, and contribute to its long-term success.
Benefits Improve Outcomes
We’ve all been there, struggling just to make it through the day with a migraine or fighting just to stay awake after being up all night with the baby. It’s hard to contribute when you’re not all there.
Healthy employees are productive employees. Without good health coverage, your team is more likely to miss work due to illness or wrestle with health issues that impact their performance. A full suite of health benefits, including wellness programs, preventive care, and mental health support, show your team that you’ve got their back.
When employees have access to the resources they need to stay healthy. Fewer sick days mean higher productivity. Healthier employees mean a more energetic, focused, and engaged workforce. Investing in health-oriented benefits isn’t just good for your team—it’s good for your company’s bottom line.
Benefits Keep You in Compliance
Let’s not forget the legal side of things. Skimping on benefits can lead to non-compliance with labor laws, hefty fines, and a tarnished reputation. Many employment laws mandate minimum standards for employee benefits, and failing to meet these obligations can have serious consequences.
Laws aside, employers have an ethical responsibility to take care of your employees. When you prioritize their well-being, it speaks volumes about your company’s values and helps build trust, both internally and externally. A strong benefits package not only keeps you compliant but also reinforces your commitment to doing right by your team.
The Bottom Line
Don’t think of your benefits package as an expense—it’s an investment in your people and your company’s future. It keeps your team happy, healthy, and engaged. It is the reason talented individuals choose to work and stay with your organization when they might even be able to make more somewhere else. Build a package that sets you apart and supports your team every step of the way.
1https://www.shrm.org/topics-tools/news/hr-magazine/drive-turnover
2https://news.gallup.com/poll/241649/employee-engagement-rise.aspx
3https://www.economistgroup.com/press-centre/economist-impact/70-of-us-workers-would-be-willing-to-switch-jobs-for-better-benefits