The Pros and Cons of Offering Employee Benefits for Your Atlanta Business (If you have 50 FT or Full Time Equivalent employees or less)
Though it may not be required by law to offer benefits such as health insurance coverage, paid vacation, and pension plans, many employers still do. These types of benefits can be a bit pricey (at least at first glance) for businesses, so the question becomes, “Why do so many employers offer them?”
To start, payroll is the largest line item on the budget for most companies’ balance sheet. Replacing and recruiting talent can cost a lot of time and money, so you want to make sure you are capable of attracting and, more importantly, retaining the best talent available.
All businesses must manage their expenses and cash flow wisely, so offering benefits is not a decision to be taken lightly. Here are some contemplations you’ll want to weigh when deciding if providing employee benefits will also benefit your business.
The Pros of Offering Employee Benefits
- A benefits package helps attract and retain quality employees that your business will need to grow. A package that offers good health insurance coverage that includes vision and dental will especially help attract and retain.
- Businesses get the tax benefit of deducting plan contributions, including health, life, and pensions.
- Employees may be willing to accept better benefits in place of a higher salary, which can result in savings to the business.
- Offering health insurance can increase productivity, reduce absenteeism, and improve employee health; employees with coverage are more likely to get preventative care along with living overall healthier lives.
The Cons of Offering Employee Benefits
- The more benefits a business offers means the more it needs to pay for administrative overhead.
- The rising cost of health care can make financial planning difficult each year; however, if your business qualifies, the Affordable Care Act has incentives to provide employer-funded benefits thru their SHOP program.
- Offering benefits can create additional concerns regarding legal compliance, which can also cause a company to incur legal fees.
- Mistakes made in benefit plans can lead to costly lawsuits, or to regulatory fines.
Get Help Before You Offer Employee Benefits
Employers who offer benefits to their employees typically attract better talent, cultivate more loyalty and increase productivity among their staff.
However, this also comes with greater exposure to state and federal employment laws. If you have any questions about legal compliance in regards to employee benefits, contact us at Shopbenefits.com with any questions you may have by filling out a contact form online or calling (404) 256-2171 and ask for Al Schiebel. We’re always happy to answer any questions you may have. It’s what we are here for!
Shopbenefits.com is committed to making insurance easier and more accessible for businesses of all shapes and sizes. With us, we won’t just give you the link, but we will be there to give a helping hand whenever you need it.
At Shopbenefits.com, you’ll work with an agent who knows your industry inside and out – and will always be there to lend a helping hand when you need one.