In order to attract and retain the best talent, your company must demonstrate long-term value to existing and prospective employees. One way of accomplishing this is through offering a great benefits package. Yet the great debate that rages on is whether benefits are better handled by Human Resources or the Finance department. Which department is better equipped to handle benefits and why?

In many ways, benefits are the glue that help “stick” the right employees to your organization. Small businesses may face an uphill battle trying to match salaries with sector leaders, yet they can close the gap with competitive perks and incentive programs. These incentive programs and benefits can help employees feel valued and in turn increase motivation and satisfaction. Employee benefits fulfilled by HR typically align with company strategies like improving retention but should be a reflection of company culture.

Benefits belong in HR because they are on the frontline of employee experience. Their focus has always been on finding and taking care of the people within your organization. Acquiring and managing benefits for employees requires both empathy and business acumen.

Some of the top employee benefits include:

These do not include federally mandated benefits like Federal Family and Medical Leave or Social Security. Additional employee perks that aren’t part the core benefits package are typically culture-based and referred to as “fringe benefits.”

If your workplace prides itself on physical health and activity, it wouldn’t be uncommon for that workplace to maintain its own gym or offer a complimentary membership to a nearby gym. When an employee feels that their benefits needs are satisfied, they’ll be more productive at work. According to the Staples 2016 Workplace Index, 46 percent of millennials say their workplace happiness would be increased by more or better office benefits.

Not everyone wants the same things, yet giving employees benefits that they value will increase their satisfaction at your company. Many businesses partner with telecom companies like T-Mobile to offer cell phone plans to employees at a discount. It’s about offering the right benefits for your company culture by understanding what your current and future employees value. Human Resources provides leaders with the tools they need to manage performance, culture, and change.

Another reason for Human Resources to have an active hand in managing benefits is that many benefits are very personal and confidential in nature. Conversations about things like disability and health coverage are best suited between HR and the employee. Human Resources is already focused on employee safety, wellness, and long-term retention, while finance is not.

There are exceptions, of course. Some small businesses have integrated HR and Finance departments out of necessity, in many instances because the company isn’t large enough to justify another salaried team member. The finance department can certainly can take part in aspects of employee performance and satisfaction, best evidenced by performance and payroll analytics. Not every organization will fit this mold, and sometimes you may find benefits positions that report to the finance department.

Human Resources is a department filled with a variety of responsibilities, including attracting, motivating, retaining, and engaging employees. However, there is a truly human side to managing benefits that may not be considered if managed solely from a financial perspective. Assisting employees with sensitive topics and benefits like disability and medical leave should be approached with empathy rather than purely considering the financial bottom line. As the needs of today’s professionals continue to evolve, benefits professionals will likely continue to reside within Human Resource departments.