Competitive value of employee benefits.

• Author: Leopold, Ronald S.
• Position: BENEFITS

An employee benefits program is an investment in a company's workforce that has the potential to deliver a range of significant business returns. With cost control becoming more of a priority, along with the need to retain a motivated workforce, attaining the maximum return on a company's benefits investment is, without a doubt, a critical business need.

Among the returns an investment in benefits can bring an organization are employee attraction, loyalty, retention and productivity. Despite the recent state of the economy, these factors all remain high priorities for employers and it is critical to recognize and address the impact that benefits satisfaction can have.

Since talent remains a competitive differentiator in good economic times and bad, employers will need to think more creatively and strategically now more than ever about how to use employee benefits programs to their advantage.

What Benefits Mean to Employees

Key factors that influence an employee's decision to stay with an employer include compensation, challenging work, recognition and an employee-benefits program that responds to the core needs of security and relevance. Certain workplace benefits help employees achieve peace of mind that their personal and financial obligations will be met and that they and their families can stay healthy.

Indeed, over the past year, employees have come to place more value on their workplace benefits as the foundation of their financial safety net.

Additionally, employees are more satisfied with benefits they feel address their specific situations in meaningful ways. In other words, an employee benefits program should be relevant to an entire workforce, no matter how diverse it might be.

Meeting these diverse needs makes good business sense. Employers cannot stand to lose talented and productive workers regardless of the economy. Benefits satisfaction has a big impact on retention by mitigating turnover. With the time, money and lost productivity involved in replacing an employee with a new hire, as well as the knowledge gap that is left behind, a strategic investment in an employee benefits program that meets the needs of a diverse workforce is worthwhile for the long term.

It's important to remember that a greater investment in employee benefits programs does not necessarily mean a bigger benefits spend. Supporting voluntary benefits, providing access to educational resources and improving benefits communications should also be...