Employees are key to the success of every business. As the former CEO and chairwoman of Xerox Corporation has said, “Employees are a company’s greatest asset—they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company’s mission.” Richard Branson, Founder and CEO of Virgin Group, has famously stated, “If you take care of your employees, they will take care of your clients.” Employee benefits are a critical component of taking care of your greatest asset. There are two key questions. First, who gets benefits, and second, what kind should be offered?
How Important Are Benefits to Employees?
The right kinds and packages of benefits are important to attract top talent, becoming a deciding factor when candidates are reviewing multiple job offers. Employee benefits can improve job satisfaction, productivity, and engagement by helping them feel valued and appreciated by their employer. According to an Aflac study, 60% of employees report that benefits influence their loyalty to their employer.
How to Decide Who Gets Benefits in Your Business
Any company that has employees and not simply independent contractors must offer these benefits as required by the federal government:
- Social Security and Medicare.
- Workers’ Compensation Insurance.
- Unemployment Insurance.
- Health insurance. The Affordable Care Act (ACA) requires any organization that employs 50 or more full-time employees to provide healthcare coverage.
- Family and medical leave. Any business that employs 50 or more employees must provide workers with up to 12 weeks of unpaid leave while protecting an employee’s job security, as required by the Family Medical Leave Act (FMLA).
Additionally, when deciding who gets benefits beyond those required by law, a company should consider company goals in providing additional benefits. This should include envisioning the value and outcomes of additional benefits and which specific ones make the most sense for the enterprise. Company leaders should determine how much money can be spent on additional benefits and what needs and priorities employees may have.
What Employees Want
When reviewing potential benefits and deciding who gets them, a company should know that employees in 2024 want extended healthcare and dental options, more paid time off to make home holidays possible, a continuation of remote work and flexible hours, retirement plans such as 401(k) plans, employee assistance programs like confidential counseling and support services, child and dependent care benefits, and life and disability insurance.
When considering who gets benefits, there are meaningful trends to watch, including the critical need to manage increasing healthcare costs, the importance of increasing personalization and employee benefit flexibility, and increasing interest in addressing employee mental health, expanded family-building and reproductive health, balancing working flexibility with return-to-office mandates, and prioritizing preventive care services.
Payroll Companies Can Help
Engagement with professional payroll companies can save time, mitigate payroll mistakes, enhance payroll data security, effectively comply with government regulations, and leverage payroll expertise.
Choose an Outsource Payroll Service to Assist You
Choose Palmetto Payroll. We are South Carolina’s expert payroll partner, serving over 300 businesses throughout South Carolina and having offices in Columbia and Charleston. We pride ourselves on efficiency, using the latest technology, and superb customer service. We provide expert payroll, tax depositing, tax filing, Human Resource services, timekeeping, and management reporting.
