Employers are not required by law to offer benefits such as health insurance coverage, pension plans, and paid vacations. These types of benefits can be quite costly for small businesses, at least at first glance, so why do employers offer them? Since payroll is already the largest line item on most employers' balance sheets, and recruiting new employees costs time and money, you want to make sure you're able to attract and retain the best talent possible. This is particularly relevant in competitive fields where workers have multiple options. Employers who can afford to offer benefits usually have a wider selection of candidates from which to choose.
But small businesses must manage expenses and cash flow wisely, so business owners must approach these considerations cautiously and prudently. After all, great benefits only go so far if the company spends more money on them than it takes in. Also, employers who offer benefits also are bound by certain laws and regulations. Regardless of whether there are violations, employers often need to pay advisers and attorneys to help them create benefit plans that comply with the law.
Below are some considerations to weigh when deciding if providing employee benefits will also benefit your business. See FindLaw's Wages and Benefits section for additional articles and resources.
Offering Employee Benefits: The Pros
Offering Employee Benefits: The Cons
Get an Attorney's Help to Understand Employee Benefits
Employers who offer benefits to their employees typically attract better talent and cultivate more loyalty and productivity among their staff. But this also comes with greater scrutiny and exposure to state and federal employment laws. If you have any questions about legal compliance with respect to employee benefits, contact a qualified employment law attorney to learn how to prevent turning benefits into liabilities.