Why do companies offer their employees benefits? What would make an employer go through the exercise of giving workers benefits even though salaries will still be paid? Goodwill? Generosity? Or is it the norm? The answer lies in the competition. With countless numbers of institutions offering the same service and demand for top quality services at an all time high, you need the best hands on the job. What better way to recruit quality staff and keep them than to offer them employee benefits?

Weighing the Pros of Offering Employee Benefits

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Employee benefits include dental care, insurance, retirement packages and so on. Though offering such benefits helps businesses, they come at a cost. Therefore, it becomes essential to marry the costs and rewards of offering such benefits to keep the business afloat. This article presents some of the pros and cons involved in offering employee benefits.

The Pros of Employee Benefits

Fosters Better Relationships Between Employer and Employee

Generally, employees who receive benefits from their employer tend to be more satisfied. They relate better with their employers creating an excellent channel of communication. This, in turn, will sustain a good workflow which is healthy for the business.

Providing Group Legal Plans Improves Focus

As in the case of health benefits, providing employees with group legal plans involving legal consultations will prevent downtime that could result from legal issues. These consultations could be provided by an experienced Florida probate attorney, for instance. When the strain of legal issues is taken off employees through group legal plans, poor performance is prevented.

Employers are More Committed to their Jobs

Employee benefits are a source of immense encouragement to employees and potential employees. Jobs with benefits attached provide a psychological boost for workers. Workers have the sense of being valued and that they are receiving good returns for their worth. Such workers tend to put in more effort to secure their jobs.

Reduction in Tax Payable

Tax wise, employers also have the advantage of being able to deduct expenses procured in providing employee benefits such as pensions and insurance from taxes

Reduction in Cost in Salaries

Given the long-term gains got from employee benefits, such as pension packages and retirement plans, employees may be willing to receive a reduced salary in favor of receiving employee benefits. Since the bulk of administrative costs goes to pay workers, a considerable amount of money may be saved by offering employee benefits.

Enhances Overall Punctuality

It has been said that punctuality is the soul of business. Providing benefits such as health plans to employees will encourage them to partake in periodic medical check-ups. The chances are that illnesses which could keep them from work will be ultimately prevented.


Offering employee benefits is a massive tool in securing top notch recruits for your business. It is therefore essential to weigh the advantages and disadvantages involved in offering particular benefits. Other factors do come into play, though. For example, more charitable retirement benefits may appeal more to younger people, while a better health package may be preferred by the older generation. In all, the goal is to offer benefits such that quality personnel are recruited and sustained at a reasonable cost.