Reasons for an employer to improve employee benefits

Most of my employee benefit comments focus on effects to the employee. This post briefly lists some of the advantages to the employer.

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