Employees are often viewed as the backbone of any organization. They perform essential tasks that make daily operations possible and are typically one of the main reasons why a company succeeds. Having great employees with strong work ethics, dedication, and expertise can help determine the success of an organization. In order to retain top-talent and promote a positive, productive work culture, it is important to prioritize employee satisfaction and well-being.
Companies may struggle with employee turnover, which is when a certain number of employees leave a company within a specified amount of time. This may be due to employees feeling as though their employers do not offer flexibility or support for their schedule, lifestyle needs and wellbeing. Turnover can pose a particularly significant challenge for companies as it can be expensive, time-consuming, and disrupt the organization’s operations. Additionally, when employees leave, they take with them institutional expertise and knowledge, which can have a significant impact on the company’s overall performance. Reduction in the turn-over rate is therefore very important and investing in employee benefits can be a significant way to help improve engagement, satisfaction and, ultimately, retention.
In today’s competitive job market, offering the right benefits can be a significant factor in a job seeker’s decision to accept a job offer or stay with a current employer. It not only shows that the company values its employees’ well-being, but it can also help attract and retain top talent.
Read on to learn more about what employee benefits are, why it is important to have them and to understand more about some of the benefits companies can offer their employees.
What Are Employee Benefits?
Employee benefits are non-wage compensations or perks of any kind provided by an employer in addition to the employee’s regular salary or wages. Voluntary benefits may include things like healthcare coverage, retirement plans, vacation time, paid time off, education grants and scholarships, paid development options, company equipment, remote work options, and more. Employee benefits are meant to provide additional value to employees, outside of their salaries, to help support their wellbeing and can be used as an incentive to stay with a company.
Why Employee Benefits Are Important
In modern working environments, employee benefits may no longer be viewed as merely ancillary. Instead, for many employees or prospective employees, they may be viewed as an expectation. In addition, if employers are unable to provide base salary increases, offering a competitive benefits package may be one way to increase overall compensation and retain employee satisfaction. Thus, to stay competitive while recruiting and retaining talent, it is important for employers to offer a robust benefits package.
Reasons Employers Should Care About Employee Benefits
Employers should care about employee benefits because they may be significant to their employee’s overall satisfaction and well-being. Benefits help provide a way for employees to take care of the health and welfare of themselves and their families. These tangible and intangible benefits, in turn, can help motivate and improve employee work product.
Employee benefits are also significant for employer satisfaction. For example:
Attractive benefits can attract higher-quality talent. Offering a robust employee benefits plan can be a way to attract top talent in the industry. In fact, studies have shown that employees are more likely to choose a job with good benefits over a job with a higher salary.
Health-related benefits can lead to a healthier and more productive workforce. Sick days can interrupt the flow of operations and may slow a business down. Offering health-related benefits like healthcare, wellness programs, and fitness memberships can help lead to a healthier and more productive workforce.
Good benefits may motivate employees to perform better. Offering employee benefits can be a motivator for employees to perform better on the job. Employees who feel like their employer is investing in their wellbeing may be more likely to put in the extra effort to meet company goals. Employees may be more motivated to help a company succeed if they believe that the company cares about their welfare.
Good benefits can help create a positive company reputation. Word gets around – companies which offer a competitive benefits package can become known for it. Employees who feel valued may be more likely to share their positive experiences with others, which can help to attract top talent to your organization.
Good benefits can help minimize employee turnover. Employee turnover can be a significant cost to a company. By offering a strong employee benefits package, companies can help reduce the likelihood of employees leaving for another job. A robust benefits package can help employees feel supported at work and, in turn, help keep up the retention rate.
Examples of Employee Benefits
Employee benefits can positively impact the company and the employees. Below are some examples of benefits that companies offer to support employees:
Healthcare Benefits: This may include medical, dental, and vision coverage. Some companies will extend healthcare benefits to employees’ families as well.
Retirement Plans: This may include 401(k) plans, pensions, or other retirement plans. Some companies will match a certain percentage of contributions to these plans.
Paid Time Off (PTO): This may include vacation time, sick days, and personal days. Some companies have an allotment of days while others offer unlimited paid time off.
Education Grants and Scholarships: This may include financial assistance for employees who want to further their education. This may come in the form of scholarships or other tuition assistance to help their employees further their development.
Wellness Programs: This may include fitness memberships, gym reimbursement, or other wellness programs. These programs can help show that a company cares about its employees’ wellbeing and can help promote a healthier workforce.
Company Equipment: This may include laptops, mobile phones, or other equipment necessary for employees to do their job.
Remote Work Options: This may include flexible work schedules or the option to work remotely. Some employees, or prospective employees, may want to have the option for flexible work and offering remote work options can widen the hiring pool. In fact, offering remote work options can allow companies to search outside of their geographic area in order to look for the best talent.
Life and Disability Insurance: This may include life and disability insurance coverage.
Employee Assistance Programs (EAPs): This may include counseling or other mental health resources. Employees’ wellbeing includes their mental health and having these benefits can be attractive for many people.
Parental Leave: This may include paid leave for new parents to care for their children. It may be come in the form of maternal, paternal and/or adoption leave. Many prospective employees may look for these policies when choosing a job.
Professional Development Opportunities: This may include paid training, continuing education, certifications, or other professional development opportunities.
Employee Discounts: This may include discounts on company products or services.
Performance Bonuses: This may include additional compensation based on employee performance, achieving goals and/or hitting targets. These benefits can help promote improved employee performance.
Transit Benefits: This may include subsidies or other benefits to help employees with commuting costs.
Stock Options: This may include stock options or other equity options as part of an employee’s compensation package.
Employee benefits can be an important feature of an organization’s overall compensation package. These benefits can help attract and retain top talent in today’s competitive job market. By offering competitive employee benefits, companies can help foster a positive work environment that motivates employees to perform at their best.
Robust employee benefits can help lead to a healthier and more productive workforce, create a positive company reputation and minimize employee turnover. When it comes to choosing which employee benefits to offer, it’s important to consider the needs and wants of your employees and to choose benefits that provide the most value to your organization.
If your company is looking for ways to improve and increase your benefits packages, learn about the employee benefits programs offered by our partner Acrisure.
Source: Acrisure