You might do your business using the top tech developments, or you can use the highest quality raw materials in your production. Your office can be the coolest place on Earth, but all of these things have no value without people. Across industries, people and their skills shape the success of each company. That’s why the importance of employee benefits shouldn’t be underrated. Today, when businesses are looking for ways to attract and retain the top talent, it’s high time to reconsider the way they might use employee benefits.
As reported by SCORE, a US business support service, a greater part of employees find flexible working hours more important than salary, according to their survey. What is more, almost 50% of the interviewees value educational perks, and 20% want benefits such as food and gym. Not to mention, over a half of the respondents believe that perks improve their quality of life, and approximately the same number of people say that benefits give them a feeling of being valued at work. At Tabulera, we know for sure that a good benefits strategy has an enormous potential for your business growth. Go on reading to find out the major reasons why employee benefits are so crucial in human resources management.
Tailor the best employee benefits package
Before we go any further, there’s one essential thing to take into account. You’ll make the most use of employee benefits only if you’re mindful of your employees’ needs. There’s a wide range of perks to choose from. That’s why, in order to tailor the best benefits package, make sure it reflects your workforce demographics first of all. For instance, if your employees mainly belong to the millennial generation, it’s a good idea to include entertainment, gym membership, or tuition reimbursement into your benefits strategy.
Basically, there are two major types of employee benefits: mandated benefits and optional benefits.
Mandated benefits are benefits legally required by the government of the country. Employees must receive this type of perks from their employers as a matter of law. Mandated benefits slightly differ across different countries, however, they mainly include social security (disability and retirement benefits), health care, workers’ compensation (the benefits that the workers receive when injured on the job) and unemployment compensation (help to the unemployed till they find new employment).
In addition to mandated benefits, you can include optional benefits into the employee benefits package. There are plenty of options to choose from: life insurance, paid sick time, paid funeral leave, vacation pay, short/long term disability, dental care, paid military leave, wellness programs, childcare, company-provided training, subsidized commuting etc. Also, the benefits package can cover food, parking passes and even entertainment.
Why are employee benefits important?
1. They help attract the top talent
It’s not a secret that the competition for talent is intense. Businesses constantly search for ways to draw the best people. A good benefits package is one of the powerful tools for attracting the top candidates. Fair enough, people will go for a job at a company that offers better benefits.
2. They enhance loyalty of the workforce
HR experts across various industries work hard to inspire loyalty from the staff. Devoted employees help your company grow and survive in the times of crisis. If you design a benefits strategy that will respond to your employees’ needs, you’ll eventually be rewarded with the unswerving loyalty and support of your staff members.
3. Benefits have profound impact on employee retention
If your benefits plan is designed to meet employees’ needs and improve their experience outside work, they will feel appreciated at work. Even if your competitors offer a more handsome salary, they won’t be able to surpass company-provided training or a solid retirement plan. Adjust your benefits strategy to ensure employees’ satisfaction, and folks won’t even think of changing their employer.
4. Perks boost staff performance
As we have already mentioned, if you offer a competitive benefits package to your employees, they’ll get a strong sense of being valued. Undoubtedly, feeling appreciated generates high motivation in the workers. It’s a no-brainer that motivated employees lead to increased productivity and allow a company to achieve better results.
5. Benefits help better focus on work
Imagine a situation when employees have some personal problems, which distracts them from doing their job properly. Good news is that it’s quite achievable to resolve some personal issues like health troubles or childcare with the help of benefits. If you develop a benefits plan that will offer solutions to employees’ problems outside work, they’ll feel less stressed and be more concentrated at the workplace.
6. You’ll have healthier employees
If you offer a quality health plan, your employees will be more likely to have excellent health. A solid health insurance plan means regular checkups and taking preventative medical steps. Therefore, your employees won’t take many sick days. On the other hand, when you offer sick leave, workers who are sick won’t infect others. As a result, you’ll enjoy a healthier workforce.
The Bottom Line
In essence, a smart and well-tailored benefits plan offers enormous advantages to your company. It facilitates hiring and retaining the best candidates, which results in a more efficient, and therefore a more profitable business. Without any doubt, benefits are an investment that will provide a generous return in the long run.