We're only a few months into 2023, and companies are taking drastic measures to cut costs and save money, including cutting employee benefits. For example, large tech companies like Meta and Twitter have significantly reduced or eliminated their benefits programs. While it seems like a good idea to save money, it does more harm to your company (and employees) than good.
Here are five reasons not to trim your employee benefits in 2023
Benefits can make or break whether an employee takes an offer at your company versus a competitor—they also determine whether an employee decides to stay at your company. Employees count on several benefits, such as childcare subsidies, fertility benefits, parental leave, flexible hours, and more, as a part of their benefits package and expect them to stick around when offered. Employees aren't incentivized to stay at a company when an employer takes away the perks they rely on. Instead, they'll take their skills elsewhere to a company that offers their desired benefits. Don't expect employees to stay loyal to you if you're not giving them benefits in return.
Negative Impact on Morale and Productivity
Employees want to feel supported by their employers, so when they're not receiving benefits that make their lives easier, they're more likely to resent their jobs. This leads to an impact on morale and leads to lower productivity. If your workforce doesn't feel valued, why would they show up and give you 100% effort? Hence, your employees are more likely to "quiet quit." To them, they are just another number, not a human being. For employees, actions speak louder than words; benefits show your employees that you care about them as people and their lives outside of work.
Poor Brand Reputation
Nothing can wreak havoc on your brand more than a disgruntled former employee. Employees who leave a company don't hesitate to take to Glassdoor to share their thoughts and warn prospective employees. Workers do their homework on companies they want to work for or show an interest in them, so when someone negatively comments on your company's lack of benefits, it can ruin your brand reputation. And the more negative comments prospective employees see, the more they'll know the company as a "red flag" and want to steer clear of it altogether. If you want your company to be known as a great workplace, you better invest in employee benefits instead of cutting them.
Increase in Burnout and Stress
Nothing is more stressful for employees than dealing with situations outside of their work life. Without support from their employers, employees feel more stressed and burnt out and ultimately bring that back into the office. In other words, the more your employees suffer, the more their productivity can suffer. If you want to do your company's health a favor, take care of your employees by offering benefits to offset the stress in their lives, such as childcare, dependent care, or financial wellness. Employees will show up to work as their best selves, knowing other life stressors are handled.
Reflect Poorly on Company Culture
Benefits and company culture go hand-in-hand; benefits help organizations communicate that they care about their people. So when you eliminate benefits, it directly impacts your company's culture. For example, suppose you say that you value your employees' well-being but don't offer any wellness benefits. In that case, it makes employees question whether or not you genuinely care about employee well-being. Your employees start to lose faith in your company culture and values, which can also impact their morale and productivity. If you want to show who you are as a company, it starts with the benefits you offer your employees.
Don't Be So Quick to Cut Employee Benefits
In this economic environment, it's easy to put employee benefits on the chopping block to save money. But doing so can severely impact your company. So instead of cutting employee benefits, look at other cost-saving solutions, such as flexible benefits, which give employees the benefits they want without costing your company. Request a demo today to learn more about PTO Exchange's flexible benefits program.