Benefits save money in a number of ways. Medical and retirement benefits are tax deductible for both the employer and the employee. Supplemental benefits can be setup as pre-tax benefits. Even though employees pay for their own policies, the pre-tax deductions can lower the employer payroll taxes liability as well.Studies have also shown replacement costs for employees, who leave their jobs, average 50% of their annual wages. This includes recruitment, training and productivity costs. Employees will leave their jobs for better benefits. Employees will take pay cuts for better benefits.In 2017, The Bureau of Labor statistics published a comparative study of benefits offered by private industry companies with public municipalities and union. Read the study here. If you want to see how competitive your organization is in benefits, compensation and turnover, check out www.bls.gov for your industry.