While most (if not all) businesses realize that offering employee benefits is valuable, there is another aspect that is just as important: allowing employees to choose their own benefits. Below, we present the 4 reasons why this makes sense:
1. It Support Diverse Workforces
Whereas decades ago it was fairly common for businesses to be staffed by a relatively homogenous workforce, things are far different now! Today, diversity is the norm rather than the exception, and this multiplicity is across-the-board (i.e. age, gender, sexual orientation, ethnicity, income level, education background, and more). By allowing employees to choose their own benefits, they can align benefits to fit their unique and changing needs, rather than accept a limited selection or “one-size-fits-all” plan or program.
2. It Can Help Lower Plan Costs
Employees who choose their own benefits are more aware of their access to preventative and primary care. This helps them take a more active role in their health and wellness, which lowers their likelihood and risk of needing hospitalization or emergency care. Aside from keeping employees healthier – which of course is an important objective – this can help businesses control and minimize the amount of their claims, which ultimately keeps their plan costs lower and thus more affordable.
3. It Improves Company Culture
Numerous studies and reports (including this one by Fast Company) have conclusively affirmed what most enlightened business leaders have known, at least anecdotally, for decades: there is an undeniable link between a healthy company culture and enhanced bottom-line profitability. Allowing employees to choose their own benefits supports and drives a culture of empowerment and trust – which are the building blocks of a healthy and, indeed, profitable company culture.
4. It Helps Recruit and Retain Talent
And last but not least, offering employees the ability to choose and change their benefits is a compelling proposition that can help recruit and retain top talent. This is particularly valuable for small businesses that may not be able to match the salary offers of large enterprises – but can certainly offer flexibility and personal care, which for some prospective employees is far more valuable than cash.
The Costs of Letting Employees Choose Their Own Benefits
Of course, even in light of these compelling reasons, some businesses may hesitate to let their employees choose their own benefits. Not because they don’t want to reap the rewards, but because they don’t have the employee benefit systems in place – and aren’t in a position to spend tens of thousands of dollars on new technology.
Fortunately, businesses that choose our acclaimed, cloud-based HR and employee benefits solution don’t have this obstacle to overcome, because our solution is 100% FREE. Furthermore, full integration with existing processes – and developing new, highly efficient and streamlined workflows – can be complete in two weeks or less.
If your business is looking to reap the rewards of allowing employees to choose their own benefits – and you want to move forward at no cost -- then contact us today and schedule your free, 30 minute demo and consultation.