On average an employer spends $1.30 for every $1 in payroll. Sometimes slightly less and sometimes more. When an employer puts dollars into benefits that have been strategically designed to maximize employee satisfaction and employer savings and tax write offs, they spend net about 70 cents on every dollar they invest.
As you can see, an employer’s dollar goes much further when they invest in benefits. When done well, the employer still gets the benefits of lower turnover, reduced absenteeism, improved morale and improved health and productivity of their workforce. In the end, we conclude that these results offset the entire costs of benefits and actually produce a profit.
When we structure employee benefits, we most often see the net average cost per employee per hour to be less than $1 in most cases and less than 50 cents in 30 to 50 percent of the cases. The indirect savings that come from reduced turnover and increased productivity overshadow the .50 to .99 cent per hour net costs associated with the benefits program.
Based on this news, how does that change your view of implementing a competitive and attractive employee benefits program or revamping your current program to makes sure it’s a leader in the market?