Employee Benefits
Employee benefits
Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated. Often, attraction and retention of employees are key business issues. The discussion of employer goals for retirement benefits below and the data provided demonstrate that employers are viewing the provision of these benefits as a key business issue, with attraction, retention and being competitive being the three top goals.
Employee benefits help attract and retain good employees. For many individuals, the availability of satisfactory health benefits is essential if they are to consider employment, and health benefits are often a consideration in leaving jobs as well. This may change in 2014, after the implementation of the Affordable Care Act.
Employers can improve the net welfare of their employees through offering benefits. Employee benefits are often tax-effective, so that a dollar spent on benefits gets more than a dollar of value for employees. Benefits provided on a group basis are generally more cost-effective than individual insurance. In addition, group purchase allows all employees to be covered, not just those in good health. Well-structured and -managed defined benefit plans generally get better investment returns than many defined contribution participants, and allow more dollars of retirement benefits to be delivered per dollar paid in. Benefits paid as guaranteed life income allow assurance that benefits will continue for life and provide more dollars of regular income than a relatively safe, self-managed periodic payout from an investment account. In many ways, a dollar spent on benefits gets more than a dollar of value for employees. Marketplace issues related to group vs. individual pricing are discussed below.
Maintaining a healthy workforce provides additional cost savings to employers when absenteeism and shortterm disability claims are reduced. Providing
Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated. Often, attraction and retention of employees are key business issues. The discussion of employer goals for retirement benefits below and the data provided demonstrate that employers are viewing the provision of these benefits as a key business issue, with attraction, retention and being competitive being the three top goals.
Employee benefits help attract and retain good employees. For many individuals, the availability of satisfactory health benefits is essential if they are to consider employment, and health benefits are often a consideration in leaving jobs as well. This may change in 2014, after the implementation of the Affordable Care Act.
Employers can improve the net welfare of their employees through offering benefits. Employee benefits are often tax-effective, so that a dollar spent on benefits gets more than a dollar of value for employees. Benefits provided on a group basis are generally more cost-effective than individual insurance. In addition, group purchase allows all employees to be covered, not just those in good health. Well-structured and -managed defined benefit plans generally get better investment returns than many defined contribution participants, and allow more dollars of retirement benefits to be delivered per dollar paid in. Benefits paid as guaranteed life income allow assurance that benefits will continue for life and provide more dollars of regular income than a relatively safe, self-managed periodic payout from an investment account. In many ways, a dollar spent on benefits gets more than a dollar of value for employees. Marketplace issues related to group vs. individual pricing are discussed below.
Maintaining a healthy workforce provides additional cost savings to employers when absenteeism and shortterm disability claims are reduced. Providing