Employees are an organization’s most important asset. Whether it’s a start-up or an established company, businesses need to look after their employees to keep them happy and motivated. One way of doing so is by providing great employee benefits.
Employee benefits are compensation given on top of a worker’s salary, such as health insurance, paid leaves, retirement plans, and the like.
With the additional cost, these benefits entail, employers often find themselves at the crossroads. Can they afford to provide these benefits? Will they get a good return out of it? The truth is this: employee perks can benefit the company in more ways than one.
What Matters to Every Employee
Before setting up an efficient employee benefits plan, it’s important to first figure out what types of benefits to offer. Oftentimes, the decision is based on the generation of talent an organization looks for or wishes to attract.
For example, a Jobvite study shows that employees aged 45 to 54 would prefer an increase in their salary. In this case, employers may want to lower their health-insurance coverage and focus on a retirement plan.
On the other hand, millennial workers from ages 25 to 34 would stay in a job that provides them with a good work-life balance. In terms of benefits, they prefer a flexible work schedule or an efficient employee-wellness program.
How Employee Perks Benefit a Company
They may be called employee benefits, but they also benefit the organization when people look at the bigger picture. Offering those is one of the smartest decisions businesses can make. Here are some of the main reasons:
Boosting Employee Productivity
When employees are well-compensated at work, everything else follows. How? They can have peace of mind knowing they won’t be left behind in emergency cases, such as illnesses or financial matters. This won’t only lift their spirits; it also gives them the right motivation to work.
According to an EAPA annual report, common causes of a decline in work productivity include mental-health issues, family problems, work-related issues, and drug or substance abuse. These issues can be curbed with the right employee benefits plan.
Improving Employees’ Health
One of the key benefits employees want is health insurance, which is why the best companies offer this on top of salaries. With health benefits, workers are able to stay on top of their health. When they’re able to take care of themselves better, the quality of their work improves.
Rather than coming in sick—infecting their colleagues and affecting productivity—they will be able to get themselves treated without worrying about the cost.
Employers can also provide wellness programs to promote health and safety within the workplace. One such program would be an annual drug testing, in which employees are required to pass comprehensive drug screenings to ensure they don’t go to work under substance influence.
One worry that employers have about health and safety training and awareness is that employees won’t engage fully. However, ‘health and safety has, at least to a large extent, solved this problem’, says David Rowland, the head of marketing Engage EHS. This is because the process is much more social and, if you must, you can measure your employees’ engagement in the process.
Increasing Employees’ Attendance
Absenteeism stems from many personal issues, such as health, family, relationships, and finances. This is one of the major reasons employers should offer employee benefits. While they’re not a direct solution to a staff member’s personal problems, they may at least alleviate them in one way or another.
Think about it. If an employee has easy access to excellent health benefits, their chances of missing work due to health reasons decrease. When they’re free to choose a work schedule they’re comfortable with, they’ll have more time to spend with family. Employees will be much happier and more motivated to get back to work.
Developing Loyalty and Retention
According to a study, employees show greater loyalty to an organization if they find a good balance between work and their personal lives. In an era when employee loyalty is declining, employers need to exert more effort in attracting loyal staff.
Employee turnover takes a huge chunk off a company’s finances. One way of retaining employees is to provide the right company perks. Make sure they’re customized to the employee’s needs to prevent any wasted funds and efforts.
Attracting Top Talents
Employee benefits are one of the key factors job applicants look for in a company. Employers can use these to their advantage—using fringe benefits to attract top industry talents.
Recruitment is tough when the competition is tight. Because of this, business owners need to step up on their employee perks. Providing just the bare minimum will probably lose them prospects to their competitors.
Your Employees Matter
Business owners may have a lot of things on their plate, but ignoring their employees’ welfare can do them more harm than good. Employees know when they’re not well taken care of, and they won’t hesitate to jump ship when the time comes.
Don’t let this happen. Offering employee compensation can be costly, but with the benefits they bring the company in the long run, they’re an absolute investment worth taking.