There are 2 main points that usually come up when raising the question do the advantages of offering benefits outweigh the costs. The first one is that it costs a lot of money to implement. Which is not the case at all. A common misconception that many have is that job candidates will automatically favor the companies that offer the highest salaries. However, salary advantages mean little if all if that extra money is going towards paying for insurance or saving for retirement. Today’s job applicants are mindful of that fact and are often willing to accept a lower initial salary if you’re able to offer them a solid benefit package. Moreover, it’s a given that the more benefits a company offers the more it must pay for administrative costs and overhead. As we mentioned previously getting tax deductions is directly correlated to offering benefits. Meaning the more benefits you offer the more tax deductions you get. So, offering employees benefits has proven to instead of costing the company money it leads to cost-savings through reduction in initial salary and tax reduction. Furthermore, having these benefits ensures healthier employees in the workplace, reducing absents especially sudden ones. They also lead to better morale which in turn boosts productivity, creativity and overall efficiency in the company.
We’re also well aware that offering employees benefits can open the company to risk of lawsuits. Applying Riskmanagementwill help in forecasting and preventing any threat of that. To manage the liability risk inherent to providing employees with benefit programs, the company must first identify the scope of that risk. It must assess the people, plans and processes involved. It must consider the nature and extent of any past, present and future liability claims against the company. A prerequisite to managing risk in relation to such liability is to determine your company’s own risk level. Determine if your company: has high turnover among its HR benefits administrators, has an insufficient number of HR benefits administrators relative to their workload, does not have ‘finger-tip access’ for each of its applicable administrators to the current text of each plan to oversee all related subjects at all times. Not having a comprehensive, up-to-date, written procedure with a clearly defined process would also be considered a risk as it the more organized the procedure is the more likely it is to avoid any confusion or mistakes. Also determine if the company has everything in documentation in relation to receiving and making use of the benefits. After determining the risk inherent to offering employees benefits. The company can fix any shortage to minimize those risks as much as possible. Of course, this won’t prevent lawsuits from completely happening. But, going back to what we were talking about earlier the rewards of offering benefits outweigh the risks.
In conclusion, I’d like to leave you with some statistics. “A research report “2015 Employee Benefits” was released on June 29, 2015 found that 70% of U.S. employers currently offer a general wellness program, up from 58% in 2008, when Society for Human Resource Management first surveyed companies on preventive health and wellness benefits. An additional 8% of organizations have plans to offer a general wellness package in the next 12 months.” And that of course is no surprise at all since “According to a RAND Corporation study, every $1 invested in overall wellness efforts yields a return on investment of $1.50. When the investment is in programs targeting chronic diseases, such as diabetes and obesity, the ROI increases to $3.80.” These results have undoubtedly stood the test of time since “Nearly one-third of organizations increased their overall benefits in the last 12 months signaling the need to remain competitive in today’s recruiting environment, according to the Society for Human Resource Management’s (SHRM’s) 2017 Employee Benefits survey report released today. Increases in benefits packages were most likely in health (22 percent) and wellness (24 percent) offerings.
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