It may come as a surprise to some, but offering employee benefits is not a requirement by law. However, there are several reasons why despite the law, employers should greatly consider offering their employees a benefits package.
From morale to promoting health, the following are some of the reasons why employee benefits should be offered:
- To differentiate yourself from the competition:
- To retain your employees:
- To promote overall health:
- To boost morale:
- To increase communication:
There’s lots of job opportunities out there being offered to your potential employees. How can you separate yourself from the rest of the pack? Perhaps offering a benefits package will increase your appeal as an employer. There are also different types of benefits packages that can really differentiate yourself from the competitors, such as group critical illness and employee assistance programs.
The longevity of your employer/employee relationship may be associated with offering a benefits package. A 2011 survey suggested that when people were asked if they would rather receive $10,000 or keep their benefits package, over 55% chose their benefits. Offering benefits may inspire employees to stick around for the long-haul.
It is important to show that you care about your employees, and that means having concern for their overall health. You want your employees to be in optimal health to increase production, take less sick leave, and ensure they are taking care of themselves to the best of their ability.
Employees are more likely to show loyalty and respect when they feel like they are truly being heard and taken care of. If they are receiving benefits, this will likely effect their overall job performance in a positive way. Employees will feel like they’re in a reciprocal relationship in which you give them benefits so they will give you their top job performance in return.
Finding out what your employees want or need in terms of benefits is a great way to increase communication. This can help you decide what is important to your workers, and will allow your employees to feel like they are an integral part of the process.
While employee benefits are not required by law for full-time employees, there are a few points to consider if you do choose to offer these incentives. First, you must adhere to the Employment Standards Act (ESA). Second, all benefits provided must comply with the Anti-Discrimination Rule outlined in the ESA. This rule involves prohibiting discrimination due to age, sex, or marital status of the employee.
This rule applies to benefit plans that include:
- Death/Life Insurance
If you decide to offer employee benefits to your full-time employees, think about the overall benefits to your staff and company and remember to adhere to the ESA and Anti-Discrimination Rule. For more information, contact our helpful team today.