Your employees are vital to your business’ success. They are the ones doing the tasks, handling the sales, communicating with your customers, and more. People who are employed at your business are the biggest contribution toward its goals and objectives. This makes them more important than any other part of your business.
To keep this important part intact, eliminate errors, and maximize productivity, you need to offer your employees something in return – and we are not just talking about their salary.
What you need is a good employee benefits scheme.
What are Employee Benefits?
Employee benefits or fringe benefits are any perks provided to employees. These include salaries and wages, but are not limited to it. Top-rated brands have reached their success because they motivate employees and care for them with packages. Some of the benefits offered in these packages include:
- Medical insurance
- Retirement benefits
- Profit-sharing, etc.
Look at these as an add-on you provide to employees, gestures that make them want to work for you and help you keep the workplace culture to a high level.
If you are not convinced that you need this just yet, check the list of benefits of employees benefits scheme below.
Why are employee benefits important?
When you offer your people benefits, you are investing in their health and their future – as well as the health and future of the company. Even so, many business owners shy away from creating such a scheme. They simply think that the cost will not justify the investment being made.
They cannot be more wrong. Why?
It is because of the following five reasons.
Makes your brand more attractive
The job market is competitive and yet, the number of impeccable employees is limited. Those who have amazing skills that are fitting for your brand have many options and offers to consider. It is your job to make people want to work for your company.
Amazing talent has the advantage of being more selective about where and who they work for. If you want competent employees, you need to attract them with something. Basically, they seek benefits. The company that offers them what they need wins the battle and gets great talent.
According to PerkBox, a highly popular solution for an employee benefits scheme, 69% of employees will choose one job over the other because of benefits. This platform is designed to help companies customize an employee benefits scheme easily.
A comprehensive scheme of benefits can be a deciding factor in whether or not a person you are looking to hire will accept your offer. If you have a strong offer, people will be more willing to work for you. You will not even have to spoil them with offers – your employees will spread the word around, making people want to work for you.
Increases Employee Retention
Do you know why people are leaving businesses today?
According to the Work Institute Retention Report of 2021, the number one reason for team members leaving companies is career issues linked with lack of opportunities for growth.
LegalJob reports that 31% of employees leave their job within the first 6 months because they are unhappy with the conditions. This same report estimates that by 2030, the US will lose $430 billion annually due to low retention.
Great employers know not to focus solely on hiring great talent. But also, on retaining the ones they have on board. If you focus all your efforts on hiring new people and forget to spoil the ones you have, you will be losing team members all the time. This means new hiring all over again, not to mention unnecessary expenses and time lost on training. Keeping great employees in your company is the best move.
To make people want to keep working for you, you need to offer them some perks. Many employers fail to realize that the average cost of replacing a team member is far higher than that of offering current members benefits.
In today’s competitive world, it is unwise to hope that people will stay loyal to you and you will not have to offer them any perks. Chances are, your best people will jump ship as soon as a better opportunity shows.
Helps boost morale
Carefully crafted employee benefits schemes will cost you, but they will yield amazing results in return. If you do this right, you will achieve something great for the company – boost your employee satisfaction and morale.
When morale is high in a company, there is certainly an optimization in the performance. Providing employees with perks like good health insurance, discounts, rooms for exercise, vacation days, rewards for a job well done, etc., makes them feel appreciated.
It is hard to work at a company that does not appreciate your efforts. Why would someone try to meet your business goals if they do not feel like they are really contributing – or are important?
People want their efforts to be acknowledged, and paying them a monthly salary is not the only way to do this. In addition to the salary and some traditional bonuses, you need to work harder to make your employees happier.
When the employee is happy, he or she is more productive and willing to work. Benefits are more of an emotive thing and less of a financial thing. By appreciating your team, you are providing them with the boost they need to enjoy their daily activities.
Happy employees are loyal employees. If you provide them with a healthy and good environment, they will have more energy to work. Not to mention, this will reduce costs for your business.
Speaking of absence, a benefits package should revolve around the team’s wellbeing. It should offer mental health resources such as a great health plan, vitamin packages, gym memberships at discounted rates, etc.
Just think about this – some of the best companies in the world have amazing wellness programs in place. Google has free bikes on the campuses, on-call nurses and doctors, massage parlors, nap rooms, standing desks, Lego stations, and even company slides. Zappos has a ‘Wellness Adventure’ program encouraging employees to pick activities to do during their lunch break (things like laser tag, golf, and trampolining).
Such things can change the way people view working at your company. Instead of feeling overwhelmed and frustrated when they have to get up in the morning, they will be eager to join a healthy and comprehensive workplace.
By allowing people to work on their wellbeing and health, you are helping boost their health. This reduces sickness and absenteeism and promotes healthy habits in the workplace.
Estimates show that sickness absence costs an average business around $500 per employee every year. If you keep people healthy and allow them to boost their wellbeing with good exercise programs, frequent activities, and healthy nutrition – these benefits will make them more energized, focused, and present.
Improves job productivity
All things we mentioned above lead to one very important result for your company – increased productivity. When you obtain talented workers, do what you can to keep them around, and keep them healthy and energized. The result comes naturally – they will be more eager and productive in their work.
Thanks to your benefits plan, you now have people in your company who are talented, healthy, and motivated to work. Their morale is high, they have all the perks they need to work efficiently and are willing to stick around for a long time. These are the people that every business wants to get – the ones who will do their best to meet your company’s goal.
As you have helped them stay healthy, you have given them more energy and physical ability to work. With benefits such as reward packages and absence, they are more willing to get to the point where they get days off, work extra hours to get more money, and achieve goals to win rewards.
Companies that fail to offer benefits like health care and retirement plans make their team worried on a regular basis. Those that do not create programs for childcare or help the team handle such expenses have employees who constantly worry about their family.
By providing a plethora of benefits and perks for your employees, you give them more reason to join and remain in your company. Simply put, a good benefits scheme shows people that you care and are appreciative of the work people put into your company.
There are many perks and benefits of having an employee benefits scheme for your workforce today, expect these from all brands. If you want your company to grow and succeed, you need to craft a carefully thought-out benefit scheme that fits your budget, but also fits the needs of your team.