At some point, everything boils down to benefits – learn how to create an employee benefit plan that can dazzle your team. Read on!
Once you hired employees, you need to retain them. Offering employee benefits is a great way to retain talent. You don’t need to be a large firm to offer compensation and benefits packages. Some employee benefits packages are mandated by law, while some are voluntary. In this blog, we will define employee benefits and types of employee benefits.
Also Read: Employee Relations | A comprehensive guide
What are employee benefits?
Before we begin, let us discuss what are employee benefits? Employee benefits or perks or fringe benefits are provided to employees over and above their salaries and benefits. They are indirect and non-cash compensation paid to employees. It is used to attract and retain employees.
There are different types of employee perks like health insurance, stock options, worker compensations, etc. Employers are required to offer their staff certain benefits like social security taxes and worker’s compensations. Employee compensation and benefits plans can be expensive if you are not careful. The main aim of the employee compensation plan is to remain competitive in the job market.
How do benefits work?
Offering employee benefits is important because it shows you are vested in employee wellbeing. We have listed how do benefit wok?
Employees benefit plans help recruit and retain employees
An employee expects an employer to offer employees benefit plans. Results of an Employment Confidence Survey by Glassdoor, 4 out of 5 employees preferred additional benefits rather than pay raises.
Working benefit leads to a healthier workforce
Working benefits gives your employees the resources to remain healthy and productive. It can lead to fewer sick days and unplanned absenteeism.
Deals at work help improving culture and morale
You may have a close working relationship with your employer. Deals at work make the employee feel their company cares for their health and well-being. Employees will be loyal and retention.
Tax advantages of HR benefit
Many employee benefits offer tax advantages to both the organization and its employees. Some employees benefits are tax-free are,
- Life insurance
- Tuition reimbursement
- Child care reimbursement
- Cafeteria plans
- Cell phones
- Meals at workplace
Employee benefits perks offer a foundation for growth
One of the best employee benefits perks is that it lays the foundation for your organization to scale and grow. Unique employee benefits perks help you attract, hire, and keep the best employees. Compensation and benefits lead to lower attrition.
Also Read: Employee management | A complete guide
What are the four major types of employee benefits?
There are several types of employee benefits programs you can implement in your office. We have listed what are the four major types of employee benefits?
Benefit at work
Benefits at work are employee benefits that pertain to the following categories,
- Working hours and leave – offering your employee flexitime company benefits have gained popularity in the last few years. Flexitime gives employees the flexibility to decide their working hours and/or location.
- Skill development – Technology is evolving rapidly. Employees are keen to improve their skills. This working benefit ensures your firm is equipped to use the latest technology and stays relevant.
- Food and beverages – For this employee benefit, you can include free coffee, lunch, and fruits. It can have the added benefit of promoting healthy eating habits.
- Employee activities and gifts – Employee activities and gift options are versatile. There are several activities you can run in this category of human resources benefits. You can game night, book club, photography club, secret Santa, anniversary gift.
The benefit of health
Typically includes health and wellness and healthcare.
- Health and wellness – Several companies have implemented a health and wellness program. It is a versatile category it can include gym membership in wellness packages.
- Healthcare – You can offer a range of healthcare packages as a part of the employee benefits packages can be chiropractic sessions or complete healthcare.
The benefit of financial security
Financial security can help your employee feel financially safe. Some employee benefits for financial security are,
- Pension plan – According to research, pension plans are a vital workplace benefit irrespective of the generation.
- Insurance – Insurance comes as an automatic employee benefit in some countries.
- Financial benefit – You can offer bonuses, commission, the possibility of shares as creative compensation ideas.
- Personal finance benefit – Investing money can be stressful. Several companies offer employees advice about loans and savings.
Lifestyle benefit chiefly covers work-life balance and mobility.
- Work-life balance – Work-life balance has become vital and is the best workplace benefit. Employee benefits that help in work-life balance are childcare, legal services, and grocery delivery,
- Mobility – Mobility benefits can simplify your employee’s life. It can include remote working or benefits like carpooling, transportation, or bicycle.
Top 10 compensation and benefits plans
We are listing the top 10 compensation and benefit plans you can offer your employees,
Offer insurance as a work benefit
Insurance benefit plans are employee benefits programs to show that you care for them. The organization can pay a certain amount towards employee’s medical care as a work benefit. These insurances can cover accidents, disabilities, sudden death, and dismemberment. Other types of medical care you can offer are dental care, biometric screening, etc.
Employee benefit plans involving disability insurance
In this employee benefit plan, the employer pays the worker’s salary. An employer can provide short-term or long-term disability insurance depending on the needs of the employee. Employee benefits can be for six months, while long-term can cover a lifetime’s salary.
Tuition reimbursement as benefits for employees
Offering to pay for your staff’s education loan or expenses is a popular benefit for employees. Employees usually pay for the course while taking up the course. But once it is over, you can pay either half or the entire course. This employee benefit encourages employees to learn new skills.
Corporate discount as an employee benefit
Corporate discounts refer to discounts offered to your employees on the original price of products or services offered by the employer. You can use this employee benefit to test your product before the product launch. The vantage circle program “Vantage point” has a similar philosophy. You can handpick the best deals and offers for your employees.
Employer benefits of paid vacation
Employer benefits of paid vacations, where the employee is paid even when he is taking leave. It is a popular benefit used in companies all over the world. The frequency of vacations or time-off does not change by offering this benefit.
Employee benefits program with stock options
You can offer the right to buy some shares of your company at a price lower than the market price on a predetermined date. The employee benefits program with stock options helps employees have a sense of ownership. Stock options help them to feel part of the organization.
Common work benefits offering paid sick leaves
It is vital you take care of your employee’s health. When an employee continues to work when they are unwell, productivity and efficiency are affected. There are chances of infecting others. Implementing the common work benefit offering paid sick leaves helps show you are invested in your employee’s well-being. The employee benefit also helps the employee recuperate faster.
Inwork benefits offering childcare facility
Inwork benefits offering childcare facility is child care managed or sponsored by you. This employee benefit helps working parents find some work-life balance. Childcare is expensive offering inwork benefits of sharing or covering the expenses of the child are welcome.
Performance bonus incorporated into employee benefits plan
You must appreciate your top-performing employees. Incorporating a performance bonus in your employee benefit plan encourages your employees to work hard and perform well. Rewarding them for their performance encourages them to achieve their targets.
Paid parental leave as a part of employee perks and benefits
The employee perk and benefits of offering paid time off to take care of the child or family member. Parental leave can be in the form of maternity or paternity leave or adoption.
Five company benefits that can attract millennial
Millennials are individuals born from 1981 to 1996, and they make the bulk of the workforce today. According to the US Bureau of Labor Statistics, they will make 75% of the workforce by 2030. Companies around the US are looking for ways to understand the motivation, needs, and expectations of millennials to retain them. Here are the top five company benefits that attract millennial,
Employee benefits program that offers student loan assistance
Education loans are expensive. It is one of the biggest reasons for stress among millennials. They look for employers who offer to help them repay the loan. You can incorporate employee benefit programs that help employees pay off their student loans. It proved to be an excellent way to attract and retain the best talent of this generation.
Millennials are looking for ways to give it back to society. They are looking for new ways to engage more in philanthropic causes. If you are looking for ways to engage with your millennial employees you can incorporate a corporate social responsibility program. Employer benefits involving your staff with NGOs, red cross societies, and other such organizations.
Employer benefits packages encouraging personal development
Millennials are interested in pursuing hobbies. Giving employer benefit packages encouraging personal development is a great way to engage with millennials. You could pay for hobbies or set up clubs like photography, book club, and drama club in your firm. Other employee benefits frequently sought by millennials are napping areas, free food and snacks, event passes, and co-working spaces.
Common job benefits of flexible timing
Most millennials do not believe in conforming to the traditional 9 to 5 format. Reports show that 45% of employees prefer flexible timing rather than rigid hours. The rise of the gig economy and several employees opting for self-employment is a great reason to offer the common job benefit of flexible timing.
Cool benefits for employees giving state of art technology
Millennials have grown up with technology and are accustomed to getting the latest information at their fingertips. They expect advanced technology at work. The cool benefits for employees by equipping your office with the latest technological devices. This employee benefit will ensure your employees can perform excellently.
Offering employee perks and benefits of remote working
As we said millennials enjoy flexible hours and the freedom of working without needing to be physically present all the time. Almost 92% of employees want to work home at least once a week. Offering the employee perk and benefit of remote working is a win-win.
Five work benefits best suited for remote teams
The trends of remote teams have become prevalent across the world. Technology like cloud computing has made it possible to do work without being physically present in the office. The ongoing pandemic has left several companies with no alternative to working from home.
Employees working at home face different work environments. As an employer, you need to ensure your remote teams remain motivated and engage. Employee benefits are a great way to keep their remote workforce satisfied and motivated. The top five benefits suited for remote teams are,
Subsidized insurance plans can be great employee benefit and compensation
Working professionals must invest in insurance plans. People today end up buying several insurance plans to secure assets and the family’s future. Employers can buy subsidized insurance plans as a part of employee benefits and compensation. Several companies out in the market that provides discounted rates for corporate employees.
Workstation support is one of the best employee benefits
Employees want to work with the best equipment in hand whether they work in an office or remotely. One of the best employee benefits you can provide to your remote staff is providing workstation support. You can provide them with hardware and other resources required to set up their workstation. As a work benefit, you can offer to reimburse their expenses towards setting up their work from home setup.
Company perks list access to home care service
A great company perks list is giving access to a good home care service. Housework is tedious and distracting especially when you are working from home. Providing your remote staff with employee benefits like helping and providing services like meal delivery, housekeeping, and laundry can help your employees stay engaged and satisfied.
Learning and development opportunity best benefits for employees
Learning and development opportunities are always sought after. It is rated as one of the best benefits for employees. Employees are keen to learn a new technique and enhance their skill sets. There are several options available online that allow employees to learn anything.
Subscription benefits of human resources benefits
The subscription benefits are one of the most sought-out human resources benefits you can offer remote employees. There are several OTT content like Netflix, Amazon Prime, and Hulu that are a great way to rejuvenate and binge-watch. Other subscription benefits you can offer are magazine and paid online forums.
Examples of benefits from top companies
Perks and benefits are vital. The non-salary components help you recruit the best talent in the competitive job market. It can help with engagement and retention. Here are the examples of benefits,
Hootsuite is a company with the best benefits
Hootsuite is a company with the best benefit. Post-lunch energy slump is normal. Hootsuite encourages its employees to nap. Hootsuite’s converted police station office has nap rooms for some employees and a yoga studio for the more energetic employees.
Chesapeake Energy offers creative benefits for employees
Chesapeake Energy is one of the biggest natural gas producers. One of the creative benefits for employees is an on-site 72000 square foot fitness center that includes an Olympic-sized pool, volleyball court, rock climbing wall, and walking track. Some physical trainers help to get the most out of them.
Campbell Soup Company’s most desired employee benefits
Campbell Soup Company is known for offering the most desired employee benefit. It provides healthy meal options in the company. Campbell offers full day-care centers, full kindergarten, and after-school programs. They also offer nursing rooms for lactating mothers.