Does offering better benefits mean that you will attract better employees?
Frequently, the answer is YES! Businesses not only compete for customers, but they also compete for the best employees. Business owners that become hyper-focused on pay are making a costly mistake. Statistics show that 81 percent of employees note that an improved employee benefits program would make them happier, resulting in a willingness to stay with their current employer. Additionally, 75 percent of employees openly admit that they would be willing to take a new job with LOWER pay if the benefits were better.
Most big businesses understand this concept, but many employers with less than 50 employees are still in the process of coming to terms with the role that employee benefits programs play in a growing company. This puts smaller companies at a massive disadvantage when it comes to recruiting and retaining the best employees, and ultimately, this can stunt the growth of the company.
Business owners should strive to remain in-tune with their employees thought processes and financial situations. Just because you, as the business owner, have a padded savings account and can handle an unexpected medical event, does not mean that your employees have that same luxury. The employee’s day-to-day concerns are not the same as yours, and this causes your employees to seek out employee benefit programs that help ease the stresses that keep them awake at night. This is where employee benefits can carry so much weight with your crew.
The long and short is this – if you pay an employee an extra $0.50 per hour, the money will disappear and they will soon forget that you provided the raise. With that in mind, I have never heard of an employee changing jobs for such a minor pay raise. Conversely, if you invested that same $0.50 per hour into an employee benefits offering, the value that you bring to the life of the employee in terms of reduced daily stress can be huge. The cost is the same in both scenarios, but the value of providing employee benefits programs greatly outweighs the increased pay.