Boost Your Business: Why Employee Benefits Outshine Salary Increases

In today’s competitive job market, businesses need to attract and retain top talent.

While salary increases are often seen as the go-to solution, offering your team benefits in the form of a flexible spending account can be far more advantageous for both the company and employees. Here’s why:

Attract Top Talent

Employee benefits are one of the most desirable tools for recruitment. With more employers than ever, leaning towards offering flexible benefits that employees can customize to their needs, benefits have never been a more important tool in the company toolkit. Comprehensive benefits packages, including health coverage, retirement savings and wellness programs, make your company more attractive to those top candidates and can set you apart from your competitors. It’s a great way to draw the best talent in your industry.

Boost Retention and Productivity

Providing benefits can also help with retaining employees. Employees who feel valued and supported are more likely to stay with your company long-term and contribute to higher job satisfaction. Plus, when employees are happy and healthy, they are more engaged and productive, helping to drive your business forward and reduce absenteeism.

Enjoy Tax Savings for Your Company and Team

Offering benefits also comes with significant tax savings for both the company and your employees. For instance, providing a Health Spending Account (HSA) allows you to give your team extra funds that they can spend on health expenses, free of income tax and payroll deductions.

For example, consider an employee who spends $100 at the dentist. If you had given them a raise, they would need to earn as much as $150 pre-tax to cover this expense. However, with an HSA, they can be reimbursed the full amount with no tax implications, saving as much as $50 on just one expense.

From a company perspective, benefits can also be tax-deductible for your business providing substantial savings. It’s a win-win for both the company and the employee.

Final Thoughts

While salary increases may seem straightforward, the strategic choice to offer employee benefits can provide greater long-term value. By enhancing recruitment, improving retention and productivity, and leveraging tax savings, benefits create a win-win scenario for everyone.

For more information about how BeniPlus can help you build a stronger and happier workforce, contact us today.