What Employee Benefits Can Do for Your Company
We know how valuable employees can be for a company. These individuals are some of the most important assets a company could have, which is part of the reason employers need to do something to attract good help and retain it.
The problem is there are other companies out there offering incentives to employees that could lead some people to jump ship, which is the reason employee benefits need to be effective and useful.
What Exactly are Employee Benefits?
Employee benefits are usually indirect or non-cash benefits that are given to employees on top of their regular salary or hourly earnings. Of course, these benefits can sometimes include cash compensation, though it does have to be beyond what the employee normally earns in order to qualify as an employee benefit.
It is important to point out that some benefits are required by law, so employers shouldn’t claim these as perks, such as making payments to Social Security and Medicare for each employee. This is not the only payment employers are required to make: Unemployment benefits are also required.
Examples of Employee Benefits Beyond What is Required
As we mentioned earlier, some benefits are required, but others are there to entice new employees or retain existing employees. There are a lot of examples of these types of benefits worth noting, such as good health insurance or a retirement savings account with employer matching. The potential employee should ask about the kind of health insurance offered and what it covers, such as dental or vision.
Another perk that some employers offer employees is life insurance, which could give employees with families peace of mind. Paid vacation time is another very common employee benefit.
The above are just some of the many perks that employers can offer their employees, but there are many more, such as the following:
- Tuition reimbursement for employees who take additional classes to be better qualified for the job
- Childcare benefits for employees who have or are thinking of having a family
- Gym memberships or discounts because physical fitness encourages health and better engagement
- Regular bonuses (because everyone loves a little extra cash!)
- Wellness programs to promote health and fulfillment
- Relocation help, just in case the job requires a move
- Travel assistance for those who need to travel far
- Commuting options for those who want alternative ways to get to their job
- Workplace perks, like in-house food services or coffee
- Flexibility, such as working remotely or flexible work schedules that help with work-life balance
Why are These Benefits so Important?
Some people may look at employee perks and think companies are wasting their money on them, but that is not the case. The reason employers do their best to figure out a great employee benefits package is because employees are more valuable than you can imagine.
It takes a long time and a lot of money to train an employee, which means every time a new hire is needed, more money is spent. It is in the employer’s best interest to find employees willing to stay with the company for a long time.
Employee retention is a problem for many companies. Individuals in the workforce know how valuable they are and understand there is nothing holding them to a particular job. There are many companies out there hungry for good employees, and there are several additional opportunities for people through things like the gig economy. Because employers know these types of realities all too well, they also know that it ends up saving them money if they make sure the employee benefits package they offer is good enough.
Why are Benefits Important to Employees?
Employees value these perks for a number of reasons, one of which is that having good perks in place ensures a better life and work balance. A good bonus means employees get to treat themselves or their families more often, pay off debts, or put more money into savings.
Vacation time or personal days are also important for job satisfaction and employee retention. Getting more time off during the year helps employees unwind with a nice vacation and come back refreshed, or to have the time they need to do other things. A happy employee is willing to stay longer in their position but is also more efficient. Employees who are not stressed or overworked have an easier time concentrating because their brains are better able to focus.
Productivity is not the only benefit that these perks offer, however. Health-related employee benefits help employees in a number of ways, too.
For example, an employee who takes care of him or herself through a wellness program has a decreased chance of getting sick. Too many sick days can eventually cut into your paycheck. Employers, for their part, don’t like people to miss work since it means that less work gets done.
From good health insurance to retirement benefits to financial benefits, there are many types of employee assistance programs that employers can offer to keep their staff happier and more engaged. GoPivot can work with you to add to your existing employee benefits in a way that is good for both your employees and your company!