An attractive benefits package can help attract top talent to your company. It can also help you retain the most valuable asset your business has – your staff. Employees who are well compensated for their work through pay, benefits, and perks are more motivated to do their work well and stay with the organization for years to come. While salary will always be an important factor for job seekers and existing workers, benefits play an increasingly significant role for employees weighing their options. The following three business insurance benefits can help improve your retention rates.
Step One: Employer-Sponsored Retirement Plans
Employers that sponsor retirement savings plans such as 401(k)s and Roth 401(k)s allow employees to save for their retirement while benefiting from tax breaks. With matching employer contributions, employees essentially receive free money. Contributions to 401(k) plans are made using pre-tax dollars before taxes are deducted, so less of an employee’s income is subject to tax. With Roth 401(k)s, funds are contributed after taxes are deducted, which means qualified withdrawals later are tax-free. This can be useful if you end up in a lower tax bracket after retirement.
Step Two: Health and Wellness Programs
Many employers sponsor health and wellness programs to promote employee wellness. A wellness program is defined as follows on HealthCare.gov: “A program intended to improve and promote health and fitness that’s usually offered through the workplace, although insurance plans can offer them directly to their enrollees. . .” These programs allow employers to offer employees incentives to participate, such as cash rewards, gym memberships, and premium discounts. Examples include preventative health screenings, weight loss programs, diabetes management programs, and wellness programs to help employees stop smoking.
Step Three: Disability Insurance
For companies with 10 or more employees, group disability insurance can be a valuable addition to an employee benefits package. Typically, group disability insurance plans provide covered employees who become totally disabled with benefits of up to 60% of their pre-disability income, up to a specified maximum amount. Employers can choose plan designs that fit their budgets and suit their employees’ needs. Benefits of group disability insurance include the following:
- Group rates tend to be lower than individual rates for disability insurance.
- Depending on the plan design, coverage may be portable when an employee leaves the company.
- Premiums can be paid by either the employer, the employee, or both, with either pre-tax or after-tax dollars.
- Pre-tax premiums paid by the employer can be taken as a business tax deduction.
- The addition of group disability insurance to your benefits package can help attract and retain quality employees.
In today’s market, offering an excellent employee benefits package as part of total employee compensation gives your company a competitive edge in attracting and retaining the best talent. It shows workers you are invested in their overall health and their futures. Consult with our knowledgeable agent for help crafting a benefits package that fits your budget and enhances your employees’ job satisfaction.
