The value of employee benefits
Another way of attracting new employees and retaining your top, experienced talent is by providing an attractive employee benefit package.
Employee benefits (also known as fringe benefits or perks) are an additional form of compensation. This is given to employees over and above their basic salary.
Most employers have been offering traditional components to the total compensation package like health insurance, life insurance, mobile or fuel allowance.
Small businesses tend to shy away employee benefits believing that they cannot afford them. While understandably they may affect the business’ short-term bottom line, it is equally important that the business also apprehends and appreciates the longer-term prosperity they bring along.
Seeking to differentiate with employee benefits
Surely, we have heard or read about Google’s unusual staff benefits, such as, yoga classes or lunches made by professional chefs. Employers are seeking to introduce innovative employee benefits to differentiate themselves. Thus, having a competitive edge in attraction and retention of talent.
- Additional vacation leave;
- more flexible hours;
- on-site child care;
- work-from-home options;
- discounts on day care services;
- bringing pets to work days;
- car washes;
- free or discounted lunches;
- discounts at beauty and health centres;
- free parking;
- car-pooling programs are just a few of the benefits that will not break the bank for businesses.
So, what’s in it for your employees?
Whilst I claim that an employee benefits package will attract talent, it is very important that businesses do communicate the value of these benefits effectively. They should also be communicated frequently. Unfortunately, things are easily taken for granted. When I say, ‘communicate the value’, I also literally mean communicating their financial worth.
It is also the case that businesses are taking on a more flexible approach and are now inviting their employees to choose their own benefits. This may help if you have a wide demographic workforce and thus, certain benefits may be more attractive to a particular demographic group. This approach also increases the likelihood of the employee appreciating the true value of the benefits.
Employee benefits may just simply improve an employee’s experience.
About the author
Maria Bartolo Zahra is Managing Director and HR Advisor at SurgeAdvisory. She has over fifteen years of human resources and business advisory experience.