A well-designed benefits package is a great investment for your company, resulting in significant returns for the money spent.
Although proving ROI case for benefits can be difficult, in general, employers agree that a thoughtful, attractive benefits package can help recruit and retain employees. It helps improve morale, increase productivity, and decrease overall healthcare spending.
We also know employees care about benefits. A lot. Benefits are the third highest contributing factor to employee job satisfaction as well as a significant contributing factor to decisions to take a job or leave a job.
There’s so much at stake. How can employers create a benefits package that keeps employees healthy and happy while also protecting their bottom line?
Before we look at the most popular employee benefits, consider these 5 ways a well thought out employee benefits package can benefit your company. Each of these areas are backed by industry research and tied directly and indirectly to your bottom line:
Benefits such as onsite clinics, comprehensive health insurance, gym memberships, workplace wellness programs, and annual health events can directly impact your company’s healthcare spending. In fact, according to an in-depth study of health benefits conducted by Hub International, 66% of employers are realizing an ROI on their health initiatives. To achieve the greatest ROI, companies should include workplace wellness initiatives that focus on chronic disease management and mental health in addition to lifestyle modifications. In addition, a well-designed benefits package can improve overall wellbeing - including financial, emotional, social, and career wellbeing - by decreasing stress, increasing financial wellness, and providing educational and professional development opportunities.
There are so many statistics, surveys, and studies that show a definitive link between a high-quality benefits package and employee satisfaction that it’s difficult to focus on just one:
interested in attracting millennials
87% of workers in this age group
most interested in family leave
increasing engagement investments
While nothing is ever a sure thing, these 5 employee benefits are consistently linked to significant returns for employers.
1. Health and Wellness Benefits Healthier employees tend to be happier, more engaged, and more productive at work while missing fewer work days than their less healthy counterparts. Fortunately, with workplace health promotion efforts on the rise, companies are well-positioned to have the greatest impact on workforce health. These workplace wellness initiatives also result in ROI, according to SHRM. Over half of surveyed HR professionals found that wellness programs decreased their healthcare costs, decreased unplanned absences, and increased productivity.
2. Financial Services and Financial Education Fifty-five percent of credit card holders carry a balance from month-to-month, student debt continues to rise, and most Americans don’t have $500 saved for an emergency. Employees who are currently in the workforce are unlikely to have received a solid financial education in school. That’s where you can help. Providing financial services and education can encourage your employees to budget, save, pay down debt, and improve their overall financial wellbeing. When employees aren’t stressed about their finances, they are also more likely to be focused and productive at work.
3. Paid Family Leave and Flexible Scheduling Want to know how important flexibility is to today’s workers? In a recent study by the Harvard Business Review, employees ranked flexible scheduling nearly as important as better health insurance when considering whether or not to accept a job offer. 88 percent of survey respondents said they would give heavy or some consideration to a lower-paying job that offered more flexible hours. Remote work options and paid family leave are a powerful tool for companies that are concerned with attracting top talent.
4. Tuition Reimbursement Programs and Paid Professional Development Employees are more likely to engage with your company when they are both challenged and supported. Investing in your employees’ personal and professional growth results in productivity gains, greater employee loyalty, and greater retention. 5. Customized Employee Perks & Benefits Education. The best benefits package is one that employees actually use—so it makes sense that customized benefits packages have the potential for greater ROI at a lower cost than standard packages. Putting together a more personalized benefits plan doesn’t have to be time-consuming. Use data and technology to offer the right options and allow employees to self-select the benefits that matter to them from a menu to limit administrative time. The key takeaway here is to not let perfect become the enemy of the good. Benefits packages can and should grow and evolve with your company. As you work to create a benefits package that delivers ROI for your organization, get to know your employees better. Keep investing in benefits education so employees get the most value from the benefits you do offer. Use technology to simplify your benefits package and create more opportunities for customization.
You can also rely on a healthcare vendor such as Proactive MD to help you analyze claims data, customize your onsite healthcare benefits, and prove ROI to company management. Ask us how we can help.
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