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The Importance of Employee Benefits


When you’re an employer, you need to do more for your employees than pay them. Though the pay is obviously important, many job hunters look for a compensation package that the company will offer them; this can decide whether someone applies for or accepts a position. Compensation packages provide medical leave, help employees save for retirement, allow for time off of work, and much more. By not understanding the importance of employee benefits, you risk losing talented potential employees as they look to your competition instead.

Employee compensation may not be something you can even skip. Some federal and state laws require employers to offer benefits such as family and medical leave, Social Security and Medicare tax payments, unemployment insurance, disability insurance, workers’ compensation, and time off for civic duties like voting and jury duty. You can choose to include paid vacation, health insurance, life insurance, and retirement plans in your benefits package; doing this is encouraged. Adding additional benefits makes your business competitive with others and helps your employees feel happy, healthy, and be productive.

Benefits are vital to a company because they increase the value of working for a company in addition to improving the health and quality of life for you and your team members. As mentioned earlier, a benefits package is something many job hunters look for before applying for a position—they consider this at an equal level as the salary they would earn in the position. Sometimes, benefits packages can be the deciding factor in where a potential employee goes if offered more than one job opportunity.

Some of the most important employee benefits are those that support an employee’s personal and financial health. The more comprehensive your company’s benefits package is, the more competitive your company becomes in the workforce. Healthcare, for example, is a common workplace benefit that people look for: many people get their health insurance through their employers. The purpose of this is to reduce how much out-of-pocket medical costs are for your employees.

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Paid time off is another major benefit that should be included in your benefits package. Many companies offer paid time off for holidays like Thanksgiving, Independence Day, and Christmas; they also give employees a set number of days or hours per year to use as they wish without having to worry about losing out on pay. This helps employees look after themselves, find a healthy work-life balance, and take care of their health without stressing about work.

No matter the benefits you give your employees, each benefit should be considered as important as the schedule for your workday. Keeping your team members happy and healthy will only serve to benefit both them and your company in the long run.

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