Offering benefits in the workplace is a fantastic way to recruit top talent and retain your best performers. Many employers offer health insurance benefits, but you can also offer benefits like life insurance, memberships to gym facilities, and access to online mental health services. The benefits you choose to offer as part of employment with your company are only limited by your budget and the laws that govern your company’s state.

No matter what types of benefits your business offers, choosing between individual and group benefits can make a real difference in the amount of money your company will be expected to pay. Below are some pros and cons of individual vs. group benefits:

Group

Offering benefits for a group usually means that your business gets a discount on the cost of covered services. For example, a health insurer will usually discount the cost of group life insurance policies because the insurer is making more money on a group policy as opposed to individual policies. To get the discount on group insurance, your company may need to enroll a certain amount of employees or employ a certain amount of workers.

Individual

Individual benefits allow employees to have more say over the benefits that they receive in many cases, but offering individual benefits can be more expensive for your company. Once again, it comes down to how much a provider stands to earn based on the number of people taking advantage of a benefit.

For instance, if your company offers gym memberships as a benefit and only a few employees take advantage of this, the gym facility will make less money compared to if you enroll 100 employees into a membership program. In this case, the gym may still offer discounted memberships, but your company will probably end up paying more per membership compared to offering a single group membership.

Which Benefit Type is Best?

Which benefit type is best really comes down to the size of your company and how well the benefit works to retain your employees. Additionally, benefits should be chosen based on how well they support quality-of-life matters for your employees. If a benefit doesn’t provide some type of work-life balance improvement, save an employee money or help an employee maintain their health, that benefit may be wasted.

Author Resource:-

Emily Clarke writes about employee management, benefits and payroll service. You can find her thoughts at HR management software blog.