Employees are a resource, and your business should treat them as such. Your staff knows how your company culture functions. With disengaged and dissatisfied employees, productivity decreases. Indeed, the health of your team is one of the many keys to the productivity of your organization. Sick days, unhappiness, and the appearance of an uncaring executive suite can ruin the most robust office’s morale. The employee benefits you offer increase or decrease both productivity and the bottom line in a meaningful way.
Furthermore, Millennials are the largest group of workers in the workforce right now, and they overwhelmingly value benefits over salary. If you offer an inadequate benefits package, you are losing out on young, bright employees who could potentially work for your organization for years. A robust benefits package opens you up to the fastest-growing demographic of workers willing to work for less money if it comes with proper benefit compensation. There are so many reasons why competitive employee benefits packages make good financial sense.
Why Prepare a Financial Case for a Good Employee Benefits Package
Caring about your employees’ health and well-being is the ethical thing to do, but it is also good financial sense. 2020 proved that unexpected circumstances could come along and damage the foundations of even the sturdiest business. Having a system in place to care for the physical and mental health of your staff is increasingly seen as a fundamental financial responsibility of the executive suite. Benefits can be a significant expense, which has led to an increase in CFO involvement in benefits. In fact, CFOs are increasingly the key decision-makers for benefits.
Additionally, the pandemic considerably changed how companies view benefits packages. According to Benefits Pro, “55% expect significant plan design revisions to take place over the next three years. That compares to the 32% that reported making changes in the past three years.” This signifies companies realize that benefits are a much more significant part of an organization’s financial health than was previously thought.
HR departments won’t completely lose their responsibility when it comes to benefits. It will still be the HR department that handles the day-to-day questions and problems that come with any benefits package. However, the HR team will need to advocate for employees when presenting plan recommendations to the CFO and other stakeholders. Now, more than ever, HR departments will need to focus on the bottom line of benefits.
Better Employee Benefits Decreases Turnover
Builtin’s research says the cost of losing an employee may be up to 2 times the worker’s salary. From hiring to training, HR professionals understand the high cost of employee turnover. If you offer a sub-standard benefits package, you can expect your employees to search for something better soon after being hired. Add that to the fact that most A-level employees are already working. If you want top-tier talent, you will need to tempt them away from their current job. When considering turnover and recruiting costs, it becomes clear that an inadequate benefits plan can be financially devastating.
Better Employee Benefits Increase Productivity
According to Blueshield, “Presenteeism, or working at suboptimal levels, accounts for between 20 percent and 60 percent of the total health-related costs faced by employers that can be traced to on-the-job productivity losses.” There is a direct connection between the type of benefits your company offers and your employees’ productivity. Having sub-standard benefits costs your organization time and money.
How Benefits Zone Can Help
Benefits Zone can help employees educate themselves about and enroll in benefits. Benefits Zone also provides engagement metrics that highlight the benefits that employees seem to value most. Further, we provide one place to direct employees for benefits-related information. We help you minimize incoming questions and answer benefits-related questions quickly, which allows HR to concentrate on onboarding, training, and recruiting staff. Costly mistakes occur when an HR department is overwhelmed. If you have any questions on how Benefits Zone can assist your organization, click here for more information.