Hiring and replacing workers is no easy task. The Bureau of Labor Statistics notes that as of March 2023, the number of voluntary quits was 3.9 million. One of the ways employers can retain workers and avoid a costly replacement exercise is by providing employee benefits. According to an AICPA survey, 80% of American employees prefer workplace benefits to higher pay. As a result, more and more companies realize that they must provide their employees with a benefits package tailored to their specific requirements and preferences. Your business can gain a significant competitive edge by providing employee benefits packages tailored to their diverse needs. Here are the advantages of customized employee benefits for your business.
1. Attracting Top Talent
One of the top rewards of providing customized employee benefits is attracting top-notch candidates. Today’s top job candidates aren’t satisfied with merely competitive pay; they also expect a generous benefits package that meets their lifestyle.
Some employee benefits that are likely to score maximum points among workers include:
- Employee discounts
- Tuition reimbursement
- Company vehicle for personal reasons
- Life assurance
- Child care reimbursement
Offering customized benefits makes it evident to potential employees that your business values its staff’s well-being and is prepared to invest in their professional growth and personal satisfaction. It can significantly improve your brand appeal to top talent.
2. Retaining Valuable Employees
It’s equally essential to retain valuable employees as it is to attract new talent.
A high turnover rate can hurt your business’s bottom line because of the resources needed to replace departing employees and the loss of valuable institutional knowledge. According to Gallup, replacing a worker will cost an employer 2-3 times the employee’s yearly salary.
In a survey, 78% of employees said that a company’s benefits package is a significant factor in their decision to remain with their current employer. Providing employees with benefits customized to their specific needs helps retain them because it fosters loyalty and dedication.
Employees who feel appreciated and believe they are part of the team will likely remain with the organization over the long run. Customized benefits help employers meet the changing demands of their staff as they advance in their careers, increasing employee retention.
3. Improved Wellness, Morale, and Productivity
Customized employee benefits can improve your workforce’s well-being, morale, and productivity. Employees are more likely to feel valued and supported by their employer when they can access benefits that enhance their physical, mental, and financial wellness.
As a result, the workforce becomes more devoted and generally happier. Benefits such as wellness, wealth management, employee assistance programs, gym memberships, and flexible paid time off policies make a big difference in the well-being and satisfaction of the workforce, boosting productivity and morale.
4. Tax Advantages
It helps to provide employee benefits as there are potential tax incentives. Even better, both employees and employers can gain tax savings from implementing customized benefit plans.
Businesses can maximize their overall compensation strategy and employees’ tax savings by investing in tax-efficient worker benefits programs.
Generally, businesses have several potential tax savings deductions at their disposal, accruing from contributions to retirement plans, health insurance policies, and specific wellness programs.
These tax breaks can reduce the cost of offering perks and make them more reasonable for your business. However, get expert legal advice to ensure you stay on the right side of the tax man.
It may seem counterintuitive, but offering customized employee benefits greatly benefits employers. It shows your employees that you value and care about their professional and personal well-being.
That can help attract top talent, retain valuable employees, get tax savings, and improve employees’ wellness, morale, and productivity.