4 Reasons Why Employee Benefits Is Getting More Popular
Small companies recognise the importance of employee benefits. Why? Because employee benefits are crucial for attracting and retaining top-quality talent. Many SMEs may not be able to provide the most competitive salary, but they are able to compensate their employees by providing better employee benefits.
Additionally, employee benefits play an important role in enhancing productivity and improving the company’s reputation. Here are four reasons why providing employee benefits is the key to small businesses.
1. Keep employees healthy and happy
It’s a fact; happy and healthy employees contribute the most at work. Providing employee health benefits reassures them that they are valued by the company and their well-being is important. Seeing that their well-being is valued, employees will be more willing to reciprocate by investing their time and effort in the company’s work.
Happy employees will also be able to boost the company morale and when the company faces challenges, all of them will be able to motivate one another to press on. Furthermore, when employees are happy, they are more likely to be engaged in their work and stay on in the company.
2. Enhance Productivity
If employees fall sick often and miss work, it could drag the progress of the company. In many SMEs, manpower is limited and companies often would be hard-pressed to ensure that their employees can deliver quality work on time.
Instead of unintentionally incentivising their employees to make full use of their employee’s benefits through falling ill, employers should consider invest in employee health benefits so as to have a healthy workforce. It is also found that stress negatively affects many employees at work. By allowing employees to not just seek treatment when they are ill but also spend time maintaining their wellness when they are healthy, it can reduce stress levels and result in better physical health status. Overall, this helps to reduce the number of sick leaves taken and improve productivity.
3. Attract and Retain Talent
This is a key concern for employers of SMEs. They are unable to offer a salary as high as that of MNCs, but they still need the best talents so that the company can progress. Providing employee health benefits is an indication of your organisation’s commitment to your employees in the long haul.
World Health Organisation (WHO) has detailed how showing your care for your employee’s physical well-being and dedication to provide in this aspect can potentially contribute to reduced employee turnover rates. Employees will see that maximising profit is not the only priority of the organisation, but that they matter too. Furthermore, by retaining existing talents, companies also reduce the cost and time needed to train new employees.
4. Improve an employer’s reputation
Good things travel quickly by the word of mouth. When employers show concern for their employees, they will be able to appreciate their efforts over time. They also begin to build trust within the company and the employers. When employees are satisfied, they will share the good things with their friends and family members. In turn, this helps employers build their reputation and build more long-lasting relationships with employees.
Providing attractive employee benefits that employees want can help smaller companies differentiate themselves and level the playing field against big companies.
Now that you have understood the importance of employee health benefits, you may be asking "So, exactly how do I do it?". Fret not - all the answers to your questions are here.