When your employees are happy and fulfilled, they produce better work. That’s why it is within a company’s interests to invest in benefits, such as life insurance, for their employees.
If you still do not provide life insurance for your employees, here are 13 compelling reasons that might make you change your mind:
- Minimize Employee Turnover Rate
- Provides Safety Net and Peace of Mind
- Inexpensive and Easy for Employers
- Attract New Employees
- Enhance Employee Financial Wellness
- Boost Employee Satisfaction and Productivity
- Enhance Your Company Culture
- Help Employees Protect Their Families
- Tax Advantages
- Better Employee Morale
- Shows Your Care for Your Employees
- Make Your Employees Healthier
- Better Job Performance
1. Minimize Employee Turnover Rate
Employee turnover rate refers to the number of people who leave your company over time. That said, resignation, retirement, and termination is included in your turnover rate.
It may not be obvious, but a high turnover rate can hurt your business. For one, it costs 33% of an employee’s annual salary to replace him. The severance package itself won’t even have a return on investment.
And when an employee leaves, it can hurt your productivity. That’s why you don’t want to have a high employee turnover rate.
That said, a high turnover rate can indicate that they are not adequately compensated. Mind you, one of the common reasons an employee stays with a company is a generous salary and other benefits.
That’s why providing employees with benefits such as life insurance is a great way to make them stay.
2. Provides Safety Net and Peace of Mind
Now more than ever are employees looking for a way to get more peace of mind. These unstable times cause employees’ morale to lower.
They see both strangers and loved ones suffering from illnesses. And the instability of the job market makes it even harder to find jobs worth their time and effort.
All of these factors together are going to stress out your employees. They’re going to occupy your employees’ minds, even when they don’t want to and when it shouldn’t, like during their work. That’s inevitable and a part of human nature.
However, if you provide them with significant benefits, such as life and health insurance, you will see a massive boost in employee morale.
Life insurance can help cover your employees’ financial needs if something unprecedented happens. That safety net can be priceless for many people, and so is the peace of mind that comes after it.
When they know that they have more freedom because of the benefits that you give them, they’ll be a lot more productive and happy while at work.
That’s because there’s nothing more reassuring than knowing that your loved ones will thrive no matter what. And that’s what life insurance gives you.
3. Inexpensive and Easy for Employers
Providing life insurance for your employees is not as costly as you would think. It can be cheaper than you think, especially since you’re getting policies for a group of people.
You see, when you get life insurance premiums for a group of people, you’re going to get a much lower rate for these policies than if you get individual ones.
When you get group life premiums for your employees, these aren’t as risky for an insurance company as individual life policies. That’s why the costs are lower.
Aside from that, a lot of insurance providers even pair up health insurance along with life insurance, so you get a bundle deal.
4. Attract New Employees
According to a survey by Frac.tl on the most important benefits to employees, the services that ranked highest are insurance.
That’s why, when employees are deciding between jobs, they look at the benefits that they get from the company. Meanwhile, offering life insurance can give you a competitive edge in attracting the best talents.
Of course, many employees would heavily consider the company that offers insurance as part of its employee perks. After all, the rising cost of health and life insurance can be challenging to keep up with as an individual. That’s one other reason why new employees will want to consider a company’s job offer more than others.
Therefore, it would be ideal to provide life insurance when creating a benefits package for your employees. Doing so helps your company stand out in the job market.
5. Enhance Employee Financial Wellness
Financial wellness is the reason why people pursue a job. However, merely getting a salary isn’t enough these days for you to feel financially well.
According to Morgan Stanley research, financial stress can hinder your employees’ productivity. The study also revealed that employees would want to receive a financial wellness program from the company.
According to the American Psychological Association (APA), money is far and away from the most common source of stress in the US. That’s how you know that life insurance is a much-welcome perk for any employee working for you.
According to the American Psychological Association (APA) study, around 60% of employees are more likely to stay with their current employers if they provide a financial wellness program.
6. Boost Employee Satisfaction and Productivity
When your employees have many worries in their minds, it isn’t easy to be productive. Their dissatisfaction in the various areas distracts them from being their best versions while at work. That’s why you have to look for ways you can improve employee satisfaction and productivity.
Productivity is even harder to come by now that a lot of people are working from home. There are all sorts of distractions preventing them from focusing on their work. One of which is the health and wellness of their family.
That’s why if you want to help improve the satisfaction and productivity of your employees, it would be best to add life insurance as an employee perk.
It takes away a heavy load off of their backs and allows them to focus on their work. Plus, since they worry about nothing else but their jobs, they are a lot more able to provide quality work outputs.
7. Enhance Your Company Culture
Strong company culture is intangible. But that doesn’t mean that tangible elements cannot shape company culture.
A great example of tangle elements is the employee benefit that you provide. After all, company culture also relies strongly on how satisfied your employees are.
If your employees aren’t happy with the work environment, they will not create a positive company culture. False promises or lofty words and ideologies aren’t enough to help you declare nor build a positive company culture.
Company culture is the overall values, attributes, characteristics, and behaviors of everyone in the company. If your employees don’t feel right about being in your company, it will create a toxic work culture for everyone in the company.
8. Help Employees Protect Their Families
Families are one of the most influential people in the lives of many, including most of your employees. That’s why if they feel like their families aren’t protected, they’ll want to do a lot to ensure that their family has all that they need. In some cases, they took the job in your company for their families in the first place.
That’s why you should help your employees protect their families with the help of life insurance.
When you provide your employees with life insurance, you’re protecting their families from unprecedented events. You’re also helping them build their family.
That’s because life insurance policies allow policyholders to build a college fund for their kids. This is also a great way to help your employees make their retirement funds.
9. Tax Advantages
When you provide benefits to your employees, you can get many tax advantages, depending on where you’re operating your business. It differs from place to place, but most of the time, you can deduct 100% of the contributions for the life insurance that you provide for your employees.
You might even get further discounts on your health insurance costs if you fulfill certain conditions.
For tax advantages, you should ask for a consultation with a legal or financial advisor to know what benefits you’re able to get. Since it’s situational, you must contact the right advice from a qualified source to ensure that you’re getting the most out of it.
10. Better Employee Morale
If you want your employees to remain loyal to your company, you have to give them something to be faithful to. And that’s where life insurance comes into the picture.
According to America’s Health Insurance Plan (AHIP) 2018 survey, 56% of US adults consider whether they like their insurance coverage or not before deciding to leave their current job.
There’s something to be said about the significant mental load that you take over for your employees when you give them life insurance. It’s certainly going to help boost up your employees’ morale. Life insurance will let them know how committed you are to the work that they give you. In turn, they’ll want to take their jobs more seriously because of it.
If your employees aren’t happy with their current work arrangement, it will affect the work they produce negatively. It will make them less productive, they’ll have more flawed work, and they can even affect the morale of others around them.
To avoid that issue entirely, you have to give your employees the benefits that will make them want to stay with you.
11. Shows Your Care for Your Employees
A lot of employees feel like they’re nothing but a cog in the machine. When your employees feel like the company doesn’t care about them, it can make them less motivated to work. It will take them longer to finish work tasks, and it can even compromise the work quality they produce.
If you want to show that you care for your employees, you need to take proactive measures. Empty platitudes aren’t enough. You also need to show tangible ways and steps beneficial to your employees in the long run. One excellent example would be by providing them a significant employee benefit such as life insurance.
When you put your money where your mouth is, it’s going to be a lot more believable when you tell your employees that you care for them. That’s why you shouldn’t only stick to inspiring speeches. Give your employees benefits that will better their quality of life.
12. Make Your Employees Healthier
The cost of critical illness can cripple your employees more than the actual disease itself. That’s why you want to give them a fighting chance by providing them with life insurance as a perk for working for your company. If you don’t offer health insurance to your employees, there’s a big chance that none of them have that coverage in the first place.
Many people with long-term illnesses like Cerebral Palsy worry about how they can get a job, let alone insurance. However, both of these are entirely possible if the company cares for its people.
You want to root for your employees. You want to make them feel how important they are to you and the success of your company. That’s why you have to invest in their health and wellness. Life insurance and health insurance are the two primary ways to communicate with your employees and other staff members.
13. Better Job Performance
When your employees don’t have to worry about the future of everyone they’ve ever loved, it becomes a lot easier to see the task in front of them right now.
Sometimes, a problem employee isn’t a problem. You need to show some humanity and consider the worries that plague them and stop them from producing better work.
With the help of life insurance, you are crossing off a significant worry in their life. It feels like someone has given them permission to perform and produce the best work they can and grow in their careers.
Providing your employees with the tools they need to succeed will not only mean success for them. It can also benefit your company in the long run.
Providing life insurance is like investing in people who can help make your business successful.
When you provide employees with life insurance and other benefits, you communicate to them that you care. It makes them feel that they are part of a community that can help them build a better future.
So if you want to get employee loyalty, productivity, and company success, invest in your employees and get life insurance.