In the continuous struggle to recruit and retain good employees, companies can gain an edge by giving employees various perks that go beyond salary. Many of these perks center around providing quality insurance and benefits. These are the intangibles that increase employee loyalty. Here are some of the ways that your business benefits from providing good insurance and benefits.
Increase Engagement and Energy
Benefits are where your company goes the extra mile for its employees. When employees feel that they’re being taken care of, it increases their motivation to perform for the company. Just like you’re not cutting corners for your employees, they won’t cut corners for you. According to Go2HR, “compared to employees who are motivated, disengaged workers are less efficient, miss more work days and cost their employers thousands of dollars in lost productivity. Keeping employee morale high is one of the best things you can do to instill loyalty and maintain a productive workplace.” Think of benefits as an area of investment in your business. The more of an investment that you make in your employees, the more engaged they’ll be with their jobs and the overall company. This engagement will cause employees to expend the maximum possible energy at their jobs.
Build Employee Loyalty
According to Wellable, “in the constant battle with turnover and employee disengagement, employee health and loyalty are valuable resources. Luckily, this asset can be earned and improved through wellness initiatives. Employees who felt their employer-provided benefits positively affected their lives were 40% more likely to say they were loyal to their company.” Simply stated, benefits increase employee loyalty. If you don’t take care of your employees, then a competitor will. As a result, there will be employee defections, which negatively impacts your bottom line. The difference between good benefits may not even be so much that a business should be willing to risk the consequences of providing inferior ones.
Subpar insurance and other benefits will likely cause an employee to have to divert work time to deal with personal business. Alternatively, if their insurance is inferior, employees may not even want to visit the doctor out of fear that they will rack up large medical bills. When employees are able to effortlessly obtain inexpensive medical care, it encourages them to take their wellness seriously. Alternatively, employees who aren’t able to take care of themselves may miss large amounts of work time as sick leave or even bring the illness into the office. This will drastically harm the productivity of the business. Good benefits spur productivity.
What you give your employees in addition to their compensation defines how your employees view the company. Providing good insurance and benefits helps avoid the perception that your business is cheap and can keep you in your employees’ good graces. When you provide your employees with all of the necessary tools to do their job and go above and beyond by providing them with great benefits, you will be able to see the results.
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