Employees want to work for employers with benefits, so you try your best to provide them. The curious thing is, that while they are very important to employees and quite costly for employers, the expense of providing them are often underappreciated by staff.
One way to reinforce that it is a significant value added to an employee’s pay package is to recap your benefits and their costs at the end of the year. Once they’ve signed up, many staff members register benefits more as a payroll deduction, than as an important part of their total compensation. So it’s good to reinforce the costs involved for you, as an employer.
Consider enclosing a note with employees’ W-2s this year, detailing their benefit costs. As an alternative, make it part of your annual staff evaluation and salary negotiation process.
And don’t forget to add in all those payroll taxes you pay; in addition to health insurance, retirement plans, and other benefits, you are also contributing to Social Security & Medicare for every employee. The combination of benefits and employment taxes can add a significant percentage to your total payroll costs.