Today it’s a well-known fact that the most valuable resource an organization has is its human resources. Charles Ranlett Flint, the founder of IBM, said: you can get capitals and erect buildings, but it takes people to build a business. Companies cant exist without its employees. Managers used many words to describe how valuable people are to their organization.
Words like talent, intellectual assets, human resource, human capital all imply that people play a vital role in business success. Every successful company has been able to come up with the best way to keep their most critical resource, happy, motivated, and productive. Therefore, Employee benefits cant be overrated.
In today’s hiring market, generous employee benefits are essential for attracting and retaining top talent. According to Glassdoors 2015 employment confidence survey, about 60% of people report that employee benefits and perks are a significant factor in considering whether to accept a job offer or not.
Top Companies Reports on Employee Benefits Plan
Several pieces of research have been carried out on the relationship between employee benefits plan and productivity. The results are overwhelmingly positive. For instance, employee benefits at Google are famous for throwing tons of perks at its employees.
The tech giants company benefit currently has a 4.6 out of 5-star rating on Glassdoor with current and former Googlers especially praising the free food and 401k plan. Other employee benefits at google include; the company’s parental leave policy, lunches made by professional chefs, biweekly chair massages, yoga classes, and haircuts.
This rating goes with the fact that Google pulls out all the stops when it comes to attracting talents. No need to tell anyone just how big Google is today with the company considered as one of the Big Four technology companies alongside Amazon, Apple, and Facebook. This quality proves the fact that there is a direct relationship between employees benefits and productivity.
Several years ago, companies saw ping pong tables, snack pantry, and company swag as what millennial employees valued the most. We tend to view all these types of perks as fun, but in the real sense, they won’t get a worker to stay around for the long haul. Employees benefits must be strategized to retain them while keeping them happy and productive.
- So what are employees expectations when they accept a job at an organization?
- What does business do if they can’t afford Google-sized benefits?
- Which one gives the highest return on investment
Let us know your views in the comments below. Let’s have a discussion on this.
What are the Employee Benefits Plan and Perks That Matters?
There can be an immense number of demands from employee end to get workforce management culture at ease but it is the responsibility of the management team to decide the important employee benefits plan and perks that matter the most. Let us find out what employee benefits plan matters the most for any organization.
- Health Insurance
- Flexible Work Schedule
- Generous/Unlimited Vacation
- Free Food
- 401(k) Plans
- A sense of Belonging
Let us know what are these employee benefits list in detail and understand how it is transforming the HR culture in some of the best companies in the world.
In this age, health insurance costs are shooting up massively. As such, there is an ever-rising demand for an attractive health care plan from companies, and the ability to meet this demand is as essential as the demand itself. It is usually the most expensive employees’ benefit (by a wide margin), but its the most desirable benefit an organization can offer its employees. It is because humans want to be alive and in good health above everything else.
Paying for insurance out of pocket is expensive, and paying doctors bill without insurance is even worse. So it makes sense why applicants make career decisions based mainly on insurance benefits.
2. Flexible Work Schedule
These employees benefit by far the most ubiquitous, accessible, and highly recommended advantage among business owners and management teams. This full acceptance is primarily due to the much-discussed work-life balance. Companies with over-the-top perks will usually admit they are intended to keep employees at the office as many hours as possible. These extended hours often lead to burnout, or employees leaving to join companies with even better perks. Companies should make sure that employees project management is done smartly.
Companies have come to realize that making a flexible-working schedule as an employee benefit is one of the most significant benefits for staffs. Giving employees the option to adapt their hours and work locations, they appreciate the flexibility and in turn, produce even better results.
It enables employees to be productive no matter where they are in the world.
3. Generous or Unlimited Vacation
This benefit is a close second to flexible work schedules. Many employers are not generous with giving both vacation days and personal leave. In some cases, verbally or culturally discouraging the use of even those days that are permissible by company policy. According to experts, this is a severe mistake. Not only does this create a strict liability in the form of unused paid time off. It tends to result in employees experiencing burnout and, frequently leaving the company for more favorable employment.
Giving employees plenty of opportunities to pursue their passions and unwind from work can go a long way towards improving performance when they are at work. This break ensures that they don’t become frustrated with the lack of ability to take more than one vacation a year or take a few long weekends.
The key is to make sure that the employees know, the reason they are given time off, it is so they can come back refreshed, to be more productive. The organizations, giving holidays and helping their employees enjoy and follow their passion, must maintain a healthy employee portal to keep records of breaks and target for better business goal achievement along with vacations.
4. Free Food As An Employee Benefits Plan
Free food is an excellent way for companies to say thank you to their employees for their hard work. Studies show that it is often the small things that matter, and in this case, we can’t overlook free food as an employee benefit. Periodic treating of employees to a meal goes a long way to tell them that their hard work is appreciated.
Another great way to increase workers’ participation is through reward payments. Reward payments in the form of prizes, bonuses, awards, and other incentives. Turning work into competitions or games can motivate employees to do their best.
This employee benefit doesn’t have to be elaborate, in any case. Even real rewards for hard work can do the trick. Business owners who utilize incentives will often see that extra push once there are valuable items and experiences on the line. For instance, some companies offer extended weekends if workers complete specific projects ahead of schedule. This simple gesture is often enough encouragement for workers to get their acts together and step up their game.
6. 401(k) Plans
It is essential that companies have a 401(k) plan in place for their employees. In recent times, employees awareness towards their financial future, and evaluating their business plan is increasing. They make comparisons between companies competing for talent and choose those who tend to make a positive impact on their futures. We can link the reasons individual companies retain the best candidates, and others don’t to these employees’ benefit.
7. A Sense Of Belonging
As humans, connection and Belonging are our things. A workplace that value its workforce can provide a compelling sense of Belonging. This workplace will fare much better than one with outrageous perks that do not keep an eye on building a connective workforce. Such a workforce must be mentored under leaders who understand the roles of the manager. Several high profile companies who overlook this employee benefit, have confirmed that they struggle with retention, even with the fact that they offer amazing perks.
The Impact of Benefit and Perks on Employees Engagement and Retention
It’s becoming harder and harder for employers to ignore. The healthier the job markets, the easier it is for employees to jump ship when they find something much better. Attracting and keeping employees takes offering them a position at a company that sees their work as a valuable contribution. They can do this by providing them excellent employee benefits.
Employees’ engagement and retention are essential, and for this, benefits, and perks form a considerable chunk of the process. For companies to attract top talent and retain them, competitive benefits packages are essential. Employees rely on a variety of benefits from employers, so making they are offering competitive and desired benefits will help in attracting talent. You can find engagement survey tools and employee engagement guide to learn more.
Is There A Downside to Employee Benefits and Perks?
Despite the growing evidence, some organizations are still skeptical of employee benefits. The high price of some benefits may intimidate cost-conscious professional. Some even believe in not trusting their workforce with freedom and responsibility of benefits like flexible work schedules. Some don’t think they need or deserve such luxuries. It may even be a simple lack of thinking outside the box on the part of the employer. Whatever the reason, each employer may be overlooking the essential fact that without their employees, they have no business.
No company has ever suffered from trying to be more empathetic to their employees. The costs and effort are worth it when considering the enormous advantages of employees benefits on the company.