Small businesses are not legally obligated to offer employees many of the customary benefits provided at larger corporations. While holding back benefits might seem like a great way to control costs, it could cost you more in the long run. You may hire the skilled talent you need, but then struggle with employee turnover, especially when competitors offer a better benefits package. But, can you afford to offer employee benefits? What you should really be asking is whether you can afford not to.
Benefits Return Benefits
There are some benefits every business must offer employees, such as time off to vote or serve on a jury. In most cases, there are obligations associated with workers’ compensation, disability programs and Federal Family and Medical Leave (FMLA). You may not be required to offer health or medical benefits, retirement or life insurance plans or even paid-time-off (PTO). However, not offering these types of benefits could be a mistake.
As suggested in “The Basics of Employee Benefits,” posted on Entrepreneur.com, employees expect certain benefits. And if you offer benefits they value, it could deliver strong returns on your investment. According to research by Aon Consulting, employees are more likely to be productive, more satisfied with their jobs and have a higher commitment to the employer. Better yet, employees may be less likely to miss workdays or quit.
Boost Benefit Gains with Business Technology
Hiring the right talent or skilled workers contributes to your overall business success. Offering the right benefits could attract stronger candidates and reduce turnover. With the right combination of employees and benefits, you stand to make productivity and profitability gains. Further boost these gains by putting the right business technology in place.
Offering a variety of benefits requires a new level of technology. Not many enterprise resource planning (ERP) solutions offer the support you need to capture, report and manage retirement programs. Here are a few solutions you can seamlessly connect to Microsoft Dynamics GP Payroll to streamline benefit management efforts:
- Life insurance: Keeping tabs and reporting on life insurance programs is easier with the Life Insurance Tax Calculator. Calculations are automatically made using the tables published by the Internal Revenue Service. Changes in salary or age are automatically updated in the system and benefit amounts are consequently updated during payroll processing.
- Retirement: There are a number of different retirement programs and each have different obligations which get further complicated as you offer matching. Enhanced Retirement Plans simplifies the entire process by automating contributions and matches based on employee deduction percentages, gross wages percentages or fixed amounts. This solution also supports multiple plans and enforces maximum contributions.
- Paid Time Off: One of the most desired benefits is paid time off (PTO). In addition to traditional sick time and vacation time, you might offer administrative leave, volunteer time, personal time or comp time. Comprehensive Leave Manager will streamline whatever type of leave you want to offer employees. You can establish accrual schedules, carry-over rules, caps and more.
Offer the Right Benefits, Manage Them Wisely
When you offer a variety of benefits programs, your employees are likely to be happy and productive. Don’t lose productivity in the payroll department. Put strong technology in place and manage benefit programs accurately and efficiently. Contact Integrity Data for more information about Life Insurance Tax Calculator, Enhanced Retirement Plans, Comprehensive Leave Manager and other payroll solutions for Dynamics GP.