You don’t have to be an expert recruiter to know that employment benefits are what drive hiring cycles in any organization. Good pay and a decent leave policy are of course the bare minimum that is expected of any business, but now more than ever, candidates take workplace benefits into account while considering an offer from a prospective employer. Individuals who are in urgent need of a job will say yes to any package they are presented with, but once matters settle down, sustaining their commitment becomes difficult considering just how many businesses can offer them better opportunities.
Understanding employee benefits and being generous with the job perks are key components of retaining employees and companies that fail in this regard will start to see high turnover rates the moment the job market settles down.
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Understanding Employee Benefits—What Do They Involve??
Employment benefits, compensation packages, job perks, workplace conveniences—there are many ways to approach and understand the concept, but at the center of all the terms lies one question, “What advantages does an employee receive for choosing to work at your organization?” Pride in their work and the satisfaction of achievement are natural rewards that they attain when they accomplish tasks on their own, but employment benefits refer to the additional rewards offered by the company. Barring a few, these are usually awarded to all employees and do not hinge on their performance or come only after specific criteria are met.
Reasons For Providing Employment Benefits
There are many reasons to provide workplace benefits to employees, the most important being its role as a sign of appreciation for the employee’s time, energy, and loyalty to the company.
- Attracts top talent to the organization
- Help maintain a competitive edge on the market
- Improves employee morale and allows them to feel more connected to the company
- Gives employees something to look forward to despite busy days
- Allows employees to feel appreciated and valued by the organization
- Improves the well-being of employees and provides them with alternate paths towards relaxation
- Helps employees disconnect from work after hours and allows them to return to work with a fresh set of eyes
- Improves employee temperament and social climate of the workplace
- Improves productivity and allows employees to work to the best of their abilities
- Compensates employees in lieu of salary increments when the company is not in a position to frequently accommodate wage hikes
- Some employment benefits are legally necessary and adhering to government guidelines keeps trouble at bay
- Creates equality between workers when those with external struggles are able to better handle them through company benefits like child care assistance
How to Choose Employee Benefits
In today’s world, companies can’t just refuse to provide employee benefits, although many of them do try to escape from the responsibility of giving back to their employees. If you’re unsure of how to choose employee benefits that suit your organization, here are some strategies to consider.
- Review the size of the organization and the budget available: Your employment benefits should not exceed the company’s capacity to support it long term
- Understand the composition of your workforce: Based on your company’s demographics, the kind of benefits they prefer will vary
- Legally required benefits do not count as voluntary benefits: If maternity leave is required according to state regulations, providing it as the only employee benefit will not be satisfactory to employees who are owed the leave anyway
- Understand the industry standard: Explore the kind of benefits that competitors are offering and what employees seem to appreciate at those companies
- Survey your employees: Understanding employment benefits that your workers will appreciate will require gathering feedback from them
- Set up a task force: Establish a system of data collection, assign employees to look into the matter of employment benefits, and meet with them regularly to explore the viability of their findings
- Establish core benefits that are integral to the identity of your organization: Identify some primary categories of benefits that you would like to define your business by. Some organizations are known for championing their employee’s creative expression while others prioritize wellness and mental health
- Communicate with employees at every stage: Do not announce a policy and take it back whenever you wish it. If you would like to introduce a plan on a trial basis, keep employees in the loop and gather feedback on the effectiveness of the program regularly
- Get help from professionals: External voices are sometimes better at helping a company find direction. Seek inputs from industry experts and work with them to create an employee benefits guide for your business
Innovative Employment Benefits to Offer at Your Organization
The Conference Board’s CHRO Confidence Index found that 42 percent of surveyed companies were planning to offer new well-being benefits this year. According to the survey, only 2 percent of the CHROs believed that employee well-being was not an organization’s responsibility. Considering how much time employees spend at work, it is fair to assume that employee well-being is significantly affected by their work. This makes it an employer’s responsibility to help them regulate their health better. Prioritizing well-being initiatives is the best way to begin with employee benefit planning.
According to Metlife, in 2023, surveyed employees’ satisfaction with their benefits was at a 10-year low. Yet 83 percent of employers believed that employees were satisfied with the benefits they were being provided. This suggests that there is a disconnect between employers and employees and companies need to do more to bridge the gap and try to provide workers with benefits that truly improve their quality of life. Knowing how to choose employee benefits correctly is just as important as providing said benefits.
Remote Work Support and Flexible Work Schedules
The conveniences of work-from-home models of work cannot be denied and organizations may have to come to terms with the fact that in many cases, these systems vastly improve the quality of their employees’ lives. Providing accommodations for hybrid work models and assisting employees with their remote work setup can be a useful benefit to many.
Allowances For Technology
As technology continues to play a crucial role in remote work and productivity, employers can provide allowances for purchasing personal devices, software subscriptions, or upgrading internet connectivity to support remote work effectively. This doesn’t have to be restricted to work-centric services either. OTT platforms and music channel subscriptions are also a good idea, especially in creative fields where employees can find inspiration in art.
Financial Literacy Programs
Employees often struggle with managing their assets carefully, moving haphazardly while deciding where to put their money. Providing training and access to financial experts is an employment benefit that employees will appreciate for the rest of their lives.
Fertility and Adoption Assistance
Many middle-aged workers struggle with matters of fertility and if there is any way for an organization to provide assistance in this regard, an employee will be able to address one of their personal stressors more comfortably. Information regarding adoption programs, referrals, time off to attend these appointments, financial assistance, etc. are some ways for companies to create employment benefits that matter to employees.
Child Care Assistance or Caregiver Facilities
Daycares and other childcare facilities can be very difficult to get into or too expensive for a regular-wage employee to afford. Making it easier to access these services can be beneficial as employees can come to work with a clear conscience and focus on work, certain that their children will be well-cared for. Similarly, when employees have aging parents and relatives to look after, providing some form of assistance to ease the burden on them is ideal.
Opportunities for Personal Development
Some employees might be looking for ways to grow their career-related skill sets. Other employees might be on the hunt for development programs that can help them with their personal growth. Identify the kind of workshops, training, and interactions your employees are looking for and try to create those opportunities for them. Providing support for employees who want to continue their formal education is also a novel offering.
Physical Health and Fitness
Employees working a desk job remain sedentary for most of the day and rarely have time to focus on their fitness. Physical health is just as important to consider as mental health, so creating opportunities for employees to improve their fitness might also be appreciated. Providing gym memberships, access to trainers, better food in the cafeteria, meal prep resources, and health-based app subscriptions are all services that can improve their overall quality of life.
Whatever employment benefits a company decides to offer, it is important to stay consistent with providing them. They should not be arbitrarily assigned to just a handful of employees and neither should they be canceled and reinstated on a whim. Employees need to feel secure in having and enjoying these benefits, just as surely as they know that they will be held accountable for the work they do every day.