Providing employee benefits or paying out more in wages may seem counterintuitive to achieving higher profits, but it’s not as black and white as it first appears.
Many companies pay their employees over the national minimum wage, but still manage to achieve year on year growth. However, it’s not just about the size of a paycheck, as a lot of it has to do with how a company views their employees; are they a liability that puts a strain on the balance sheet, or are the employees an asset and a source of revenue?
There are millions of dollars in lost profits the world over due to hiring and training new staff, only because a good employee decides to take their skills and training to greener pastures. In a lot of cases, this is revenue which could have been saved merely by treating employees with respect and providing benefits which could help them achieve a healthy work-life balance.
Understanding that the job is a big part of your employees’ life, but that they also have significant responsibilities and commitments outside of the workplace will foster job loyalty and satisfaction.
Medical care is a fact of life for both individuals and families, and with the rising costs every year it’s also a major source of stress and worry.
Healthy employees who have the reliance of a safety net via way of medical benefits will be more motivated to receive regular check-ups. Regularly monitoring their health will help them avoid medical conditions of a more severe nature later.
Without the stress of medical bills hanging over their heads, employees tend to be happier, and happy employees are always more productive and creative. With all of their needs covered at the workplace, employees feel respected, trusted, and needed, so they will be far less likely to take their skills and expertise over to your competitor.
A small business health survey recorded 78% of employers stating that the introduction of employee benefits for health care resulted in increased loyalty and decreased turnover.
With medical expenses for employees being 100% tax deductible at a state and federal level, and the Affordable Care Act providing tax credits against insurance for small businesses, there’s no reason your business can’t enjoy the profits which come from loyal, happy, and healthy employees.