Most of my employee benefit comments focus on effects to the employee. This post briefly lists some of the advantages to the employer.
- Shows that the employer is ‘in tune’ with employees’ lives.
- Helps to attract and retain good employees.
- Employees making decisions on employment offers often overweight the importance of employee benefit issues vs. the actual employer cost of the benefits.
- Widening the number of available health plan options often reduces the employer expense.
- High value business activity: a large impact at little cost.
- Improve employee productivity by removing personal stressors.
- Improved employee well-being improves employees’ attitudes and that is good for business.
- Employee benefits are provided tax-free by the employer vs. wages that trigger additional employer taxes.
- Employee benefits may reduce workers compensation insurance costs vs. cash wages that drive this cost.