As an applicable large employer (ALE), you know that you can benefit your employees by offering them perks and benefits. Any big business that gets together with an insurance broker and gets the system in place will find that it’s well worth the investment. Read on to learn the perks of perks … and benefits.
Happy Employees Make a Happy and Profitable Brand
It’s no secret that happy employees are more productive, and that’s a part of your business’s brand. Employees with satisfying perks and benefits make for a fun workplace that customers can see and feel.
Your favorite ballpark or clothing store turns on a switch inside of you: you want to return for more. Hit your employees’ switches, and, in turn, they’ll turn on your customers and clients.
Keep your employees content, and they’ll build your brand reputation for long-term benefits. Happy employees make a happy and profitable brand.
Perks Can Help Your Big Business Save Money
Coburg Banks pointed out that offering perks to your employees can save your business money. Here’s why:
Perks and Benefits Make Recruiting Easier and Better
Quality perks and benefits attract quality job candidates. The employee attraction, retention, and motivation experts at Fond Employee Engagement Platform, in an explanation of why companies invest in perks, pointed out their importance to employees:
“Money is no longer the primary motivator for employees and would-be new hires. … The majority of employees are seeking work that brings meaning and fulfillment to their daily lives where managers and executives show employees their appreciation.”
Job seekers want excellent perks and benefits. If your company offers them, it gains a competitive edge. It will recruit better candidates who turn into better employees.
Perks and Benefits Help Retain Staff
“Every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average …” to replace that employee, according to PeopleKeep. Retaining staff just makes sense, and, just as job hunters want perks and benefits, so do your employees. Keep them on board with perks and benefits that beat those of your competition.
Benefits and Perks can Reduce Your Business’s Taxes
Who doesn’t want to pay less money to the Internal Revenue Service (IRS)? You’ll find tax-deductible items among both the perks and benefits. Take a look:
Fringe Benefits Are Tax Deductible
Many types of benefits are tax deductable. Examples, according to the IRS include the following:
Many types of health plans
Dependent care assistance
Bonuses and awards
The IRS Excludes De Minimis Benefits from Taxation
De minimis benefits include many smaller perks that, over a fiscal year, can really add up. The IRS lists, specifically, these items:
Controlled, occasional employee use of the photocopier
Occasional snacks, coffee, doughnuts, etc.
Occasional tickets for entertainment events
Occasional meal money or transportation expense for working overtime
Group-term life insurance for employee spouse or dependent with face value not more than $2,000
Flowers, fruit, books, etc., provided under special circumstances
Personal use of a cell phone provided by an employer primarily for business purposes
If you think about it, you’ll come up with lots of ways to use de minimis benefits to incentivize your employees at a reduced cost. Won’t it feel good to deduct these expenses at tax time?
Ask your insurance broker to help you take a look at the numbers for your business, as an ALE. You’ll see for yourself that perks and benefits result in both economic gains and reduction of expenses. Get the highest return on investment (ROI) with your business money by keeping your employees happy with quality perks and benefits.