Employee health benefits are a hot topic and even though they can seem like another item on your management list, they are invaluable to your organization. Employee benefits are an investment that can boost productivity and drive long-term success.
Payday began as a payroll company in 1985. Since our founding, we have added services to our roster, like health benefits brokers who provide our clients with much-needed management of health benefits. We want to help business owners and managers simplify their business needs.
It’s with this goal in mind that we cover some ways implementing employee health benefits can help your business. The following covers how benefits attract talent, increase productivity, improve morale, and strengthen company culture.
Below you will learn:
- Offering Health Benefits will Help Attract Talent
- Offering Health Benefits can Increase Productivity
- Health Benefits can Improve Company Morale
- Health Benefit Offerings Strengths Company Culture
Offering Health Benefits will Help Attract Talent
Employee health benefits are a powerful tool for attracting and retaining talent. Benefits help to create a positive work environment and show that your organization prioritizes employee well-being.
According to ADP, 60% of employees surveyed named healthcare as the most important factor in deciding to accept a job.
When considering which health benefits to put in place, it is crucial that the offerings are tailored to your team. Consider factors such as employee demographics and individual needs when developing your plan.
These metrics matter because they will help you provide a health plan that is actually useful and beneficial to your team. Failing to consider the above could result in a health plan that does not address employee needs and actually becomes a point of agitation for them.
Basic benefits include medical, dental, vision, employer-paid life insurance, and employer-paid disability insurance. This would be considered an average healthcare plan. Not bad but it's not going to stand out from the crowd
An above-average healthcare plan might include an FSA (Flexible Spending Account), an HSA (Health Savings Account), or other voluntary products. Voluntary products can include telehealth visits, dental crowns, and laser eye surgery.
Current and potential employees will be drawn to a plan that goes above and beyond, rather than one that only meets the most basic needs. An above-average healthcare plan signals to the team that they are a priority.
Offering Health Benefits can Increase Productivity
Employee health benefits play a crucial role in increasing productivity as well. They promote a healthy and positive work environment, reduce stress and enhance engagement. A workforce with healthcare is healthier, present more often, and more productive.
Investing in employee benefits helps your organization boost productivity and achieve long-term success. What does this mean exactly? Studies have shown that employee health is tied to the company’s health. Healthcare strengthens human capital, which in turn increases the health of the company.
Health Benefits can Improve Company Morale
Employee health benefits can also improve morale in the workplace. They prove to employees that their well-being is a priority for the company. If you have experienced the difference between a workplace offering great benefits and one offering none, it can be drastic.
According to the CDC, companies prioritizing healthcare benefits have better morale, and conversely,
“employee morale may be negatively impacted if workplace health programs are designed and implemented without respect to employee needs and interests; employee input into the development process; or respect for individual privacy. Such a situation can compromise trust between the employer and employee…”
When employees feel cared for and supported through robust health benefits, it shows.
Health Benefit Offerings Strengths Company Culture
Employee health benefits play a crucial role in strengthening company culture. They foster a sense of employee support and well-being. A positive company culture can lead to higher job satisfaction and better engagement. When the culture thrives, so does the business.
Employee benefits improve company culture in three specific ways:
1: Greater hiring power to keep and attract top talent, giving you more control over who joins your team. Thus shaping your culture.
2: Employee benefits reflect company values. When benefits align with the values of an organization the culture becomes stronger.
3: Leadership can model the company culture they are trying to create through the benefits they offer.
When it comes to company culture and healthcare benefits you must walk the walk. A discrepancy between the two risks the reputation of your organization. If, for example, a pillar of your company culture is a work-life balance, that should be reflected in your healthcare.
Health Benefits are Good Business
A well-thought-out, well-funded healthcare plan is the backbone of a healthy company. The studies and statistics bear it out. This may lead you to question your healthcare offerings. Maybe you're wondering how to begin. That's normal and okay. Look to the links below for solutions.
At PaydayHCM, our focus is helping other businesses simplify their daily operations. That’s why we’ve developed these articles.
Still not sure what your next step should be?
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If you don’t have a healthcare plan set up, we recommend 6 Steps to Develop and Implement a Company Health Plan.
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If you would like more information and guidance in this process, you can chat with us about your needs as well.
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If you are already offering healthcare options but feel they could be better, optimizing your plan may be the answer. In our article, “What Does a Meaningful Benefits Package Cost,” we cover what a healthcare package should include.