As a business owner, you are required by law to provide certain benefits for the welfare of your employees. You have to match the Social Security taxes your employees pay and obtain a worker’s compensation insurance policy. If you terminate an employee, you have to provide Consolidated Omnibus Budget Reconcilication Act (COBRA) funds to extend his health insurance.
Recruitment and Retention
The benefits an employee receives from his employer for his welfare are often a significant reason why he decides to accept a job offer. As such, providing employee benefits allows you to compete with other businesses to recruit and retain qualify employees. If other employers offer better benefits , good employees may choose to go there.
By providing a plan that’s good for employees’ welfare, you show them that you value them. This can help make them feel welcome and happy in your company, motivating them to work harder. If your health plan has wellness coverage and preventative care, employees are more likely to stay healthy, cutting down on absenteeism and sick days.
Providing a good employee welfare plan reflects well on your business, building a good company image. It may even earn you some press coverage, giving you free publicity to improve awareness among potential customers. This may boost your sales and increase your profits.