As a business owner, you understand that the relationship between wages and benefits is a very important aspect of your business and its pay structure. Over the past few years, the scale has tipped in favor of better benefits as an increasing number of employees are speaking up in favor of benefits above higher wages. This employer trend can affect several areas of your business, including how you handle your Orlando Employment Practices Liability.
An article by the Wall Street Journal points to several reasons for this trend. Today’s workforce puts great value on health insurance, time off and flexibly.
Companies are becoming more creative by offering paid lunches, paid commutes and gym memberships. An increasing lean toward a better quality of life at work by employees has accelerated this trend.
From an employee perspective, it makes great sense for the reason of taxes. Many benefits are not taxed, but wages are. For example, a paid company lunch that is tax free can be the same as double that amount in cash.
A business has several reasons to favor greater benefits as well. It is easier to offer benefits and perks rather than wage increases because they are more flexible and easier to implement. Restructuring salaries can be a very involved and lengthy process.
As a business owner, you understand that there can unforeseen obstacles where you must react quickly. Another perk of benefits over wages is that if you have to cut expenses quickly, it is easier to (hopefully temporarily) decrease benefits than it is to reduce wages.
There are several reasons why this employer trend can be positive for your business. At Newman Crane & Associates Insurance, we take the time to understand employment trends and how they can affect your business. Call today for information on our employment practices liability. 407.859.3691