Are Employee Benefits Better Than Higher Pay?

Apr 13, 2023
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When your company hires a great employee, it’s only natural that you’ll want to keep them on your team for a long time. But when it comes time to offer your exceptional employees additional compensation for their hard work, you might be asking yourself: should I provide an employee benefits program or higher pay? 


In short, employees typically prefer to have access to a health benefits program over a higher salary. Let’s discuss some of the potential reasons for this and the ways it impacts your bottom line. 

 

Employee benefits provide peace of mind 

Everybody needs regular healthcare checkups whether they have coverage or not, so offering a benefits program can help your employees feel more at ease in case of an unexpected injury or a high medical bill. You can help them prepare for a rainy day by offering comprehensive coverage. 


Recipients of these benefits are more likely to feel healthy, require fewer sick days, and have a better quality of life overall. One study asserted that 90% of businesses saw the quality and quantity of employee work improve when employee wellness is considered a priority. When your employees are thriving, so is your business. 

 

Employee benefits save money (for employees AND employers) 

Given the discounts that companies like yours can provide to your employees with a group health plan, your employees stand to save more money in the long run than what a comparable raise could provide them. This is also coupled with a reduction in emotional stress that a lack of health insurance can cause, which can help prevent stress-related illnesses and more trips to the doctor. 


An employee benefits plan may seem like an expensive investment at first, but the financial benefit companies see when they invest in their employees’ mental and physical wellbeing cannot be overstated. When you invest in your employees, you’re investing in the health of your business. 

 

Employee Benefits Can Help Your Company Retain Its Top Talent 

Attracting and retaining employees is a major factor in your company's success, as turnover can have serious consequences for your business's bottom line. By focusing your recruitment and retention efforts on delivering employee benefits that are too good to give up, you can improve your odds of securing and keeping the best people in the industry. In exchange, your employees feel valued and motivated to do their work. 


Plus, the financial and productivity cost of hiring and training new employees can be difficult to manage in comparison to maintaining a consistent workforce. By prioritizing the staff you already have, you can save yourself a significant amount of headache and lost productivity time on hiring new employees. 

 

Conclusion 

Employee benefits programs are a must for companies that want to retain their employees and keep them happy and productive at work. They help employees feel valued and secure while they save money on healthcare costs. If you’re ready to invest in your employees and the future of your business, speak with a KBI Benefits consultant today. 



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