Several business owners typically wonder why it’s necessary to offer financial perks and other benefits to their employees and how this helps their businesses. Well, different surveys and researches have indicated that doing this can boost your company’s growth and production, and this article will show you how. Similarly, you can consult with an expert at http://jlinsuranceagency.com/ to learn the impacts and for more professional guidance.
How Businesses Benefit from Employee Perks
Offering employee benefits can help your business grow, comes with financial advantages, and bring efficiency and effective operations to your company. Here are some advantages to consider.
1. Access to Reduced Monthly Premiums
Group health insurance plans typically cost less compared to individual coverage. According to studies, the 2018 average premium cost for corporations with five or fewer employers was $419 per individual, compared to an average of $364 per person in companies with between six and 29 employees. According to the statistics, it’s safe to say that a larger group cover will cost you much less compared to per-person premium rates.
2. Tax Incentives
Offering health insurance cover for your employees makes you eligible for tax incentives. For instance, you can deduct up to 100% of the total monthly premiums you pay for your employees from your federal business taxes. Similarly, offering health insurance coverage as part of your workers’ compensation plan can make you benefit from lower payroll taxes. As if not enough, the Affordability Care Act created a tax credit to encourage SMBs to provide good health to their workers. As a result, you may benefit from credit tax if you meet the qualifications, including having less than 25 full-time workers and paying an average of $50 000 annually to every employee.
3. Get an Edge on Competition
The Society for Human Resource Management (SRM) says that leveraging the benefits package you offer to workers is one of the most effective ways to edge the steep competition across industries. Similarly, the organization reports that offering employee benefits can help companies retain their workers, promote productivity, and encourage team motivation. Also, research shows that employee retention brings trust between companies and clients and endorses good working relations with employees.
4. Employee Benefits Boost Productivity at Workplace
The American Institute for Stress reports that workplace stress is one of the critical health challenges witnessed in the nation today. Workplace stress can quickly impact physical health and lead to more seek-leave days than working days. However, a well-designed employee benefits program has shown positive results in workers’ motivation and happiness, thus reducing stress levels. Similarly, the CDC reports that employers who prioritize preventive care, including frequent health checkups for their staff, get more accomplished work.
5. Increases Employee Satisfaction
Research conducted by Glassdoor Economic Research found that employee benefit plans can boost employee satisfaction. By default, a satisfied employee will typically be more productive at work and stay at your company for longer, hence helping you retain the skilled workforce at your company. The research points into benefits like health insurance, paid time offs, and retirement and pension plans to have more impacts
Providing employee advantages is an excellent way to increase productivity, efficiency, and employee motivation for your company. Thus, it comes in handy for company growth and reaching goals. However, you should walk the journey with a competent business insurance professional to help you navigate the plans and premiums.