Workers who are “disengaged” tend to work less efficiently, may cost their employers more in lost productivity, and overall can bring down a workplace and risk burnout. As an employer, it’s in everyone’s best interest to promote a productive, positive workplace by showing employees that hard work pays off. Introducing benefits, from health-related programs to personal benefits, is a great way to ensure that your team is motivated to work.
In addition, you may find that the success of your business will depend upon having a core group of “key employees.” Key employees, also referred to as keymen or key personnel, may have a large role in the decision-making process at your firm or has a large amount of ownership. Key employees are intrinsic and crucial to your business’s operation, which only makes sense that they may enjoy key employee benefits and other monetary bonuses.
Here are some examples of how employee benefits can affect total employment compensation, what key employee benefits are, and how they improve employee morale.
The Advantages of Employee & Key Employee Benefits
Employee benefits provide advantages both for your employees and for you as the employer, but they don’t come cheap.
If you were wondering how they affect total employment compensation, it increases it. Total compensation is essentially expressed the same way as a base salary is, but includes the value of any additional benefits the employee gains on top of their existing salary.
Here are the advantages of employee benefits, for both the employer and your team:
For your employees
Employees who do not have the motivation to work may demonstrate decreased productivity, miss more workdays, and maybe less inclined to work hard. Incorporating an employee benefits program may present the following advantages:
- A sense of boosted security for themselves and their families
- Improved morale at work
- Meets health and medical insurance needs
- Pride and achievement at work when their efforts mean something
For the employer
There are several advantages when it comes to offering group insurance as an employer. Mostly, offering group health plans and key employee benefits can help you stay competitive as a business, but you may also reap the following benefits:
- Increased productivity
- Managing high-risk coverage for reduced costs
- Premiums may be tax-deductible as a business expense
- Solves the root of all absenteeism from the workplace (dental and health especially)
How Does Key Employee Benefits Work?
How do benefits improve employee morale? Your key employees perform an integral service and help to keep your operations running. Without them, your business may not see the same success as it does today. The best way to retain them is to include other forms of compensation, stock options, and special key employee benefits.
Stock options, as the first and foremost benefit, can reward senior employees who may have been with your company for a long time. You can offer incentive stock options, which may be eligible for favorable treatment by the IRS. You may also offer non-qualified stock options, which are typically the most common reward for key employees.
Other options include:
- Incentive and deferred compensation
- Equity participation or employee ownership of shares
- Golden parachutes to protect executives if a company is sold
- Supplemental executive retirement plans
Key employee benefits can be affordable when you choose the correct provider and the right plan for your business. Discuss with the insurance professionals at Hitchings Insurance Agency about key employee benefits to reward your vital personnel.
Which Benefits are Most Valuable for Businesses?
Employees may place different values on certain benefits and be more attracted to benefits that offer them flexibility at work and improve their work-life balance. Improved health, dental, and vision insurance are also a heavy consideration. In this study of over 2,000 workers, health, dental, and vision came out on top but were nearly identical to incorporating flexible working hours.
In no particular order, the following are considered the desired benefits by employees:
- Group health insurance
- Dental insurance
- Vision insurance
- Wellness packages
- Employee assistance plans
- Retirement benefits
- Indirect compensation
- Workplace flexibility
- Company retreats
- Student loan assistance
- Tuition assistance
- Paid parental leave
Benefits do not have to break the bank to attract new talent and retain your existing employees. Employees may place the highest value on benefits that are deemed relatively low-cost, such as having flexible hours, increased vacation hours, and even the option to work from home. That being said, offering programs like group health and dental may be imperative to retaining employees and remaining competitive with other businesses in your industry.
Employee Benefits for Boosted Workplace Morale
There are numerous ways you can boost morale in the workplace, such as hiring the right people, showing good character, communicating, and challenging your workplace. Providing incentives such as employee and key employee benefits is one of the best ways to show your employees that there is reason to work hard and that you are a trusted employer who wants to instill loyalty and promote a productive workplace. Employee benefits can help you to acknowledge and appreciate your staff.
For more information regarding employee benefits and group health plans, discuss with a representative from Hitchings Insurance Agency.