In short, employee benefits are the indirect and non-cash compensation paid to an employee. These benefits are given to employees over their salaries and wages and are sometimes referred to as “fringe benefits”.
Employees love benefits. They want appreciation and recognition for their hard work. Many employees apply for organizations depending on the perks and benefits offered by that company which means that the employee benefits provided by companies are key to attracting and retaining staff.
Job satisfaction is directly tied up with employee satisfaction. Paying no attention to employee satisfaction can ultimately lead to a decrease in commitment thereby causing a lack of motivation, efficiency, and finally productivity.
Why are employee benefits important and why does your company need to implement them as soon as possible?
Engagement surveys show that 50% of employees would leave their job for better employee benefits so, benefits are definitely important. Here we have listed down some points highlighting the importance of employee benefits:
1. Boosts Productivity
For employees to perform their best, they need to be completely focused. Most of the times they can’t focus because they are worried about things at home. These include paying medical bills, giving their children the best facilities and more.
20% of employees perform better when provided benefits.
Offering benefits to employees helps relieve their stress. When they know that things back at home are being taken care of, they sleep better and perform better.
2. Raises Loyalty
A manager who cares about his employees will surely build a more loyal employee base than others. When your employees’ personal and professional lives are being cared for, they will want to build their career in your company.
60% employees say benefits are very important for their loyalty.
Building a benefits package that advances both their personal and professional development is important. It makes employees more engaged and doesn’t make them leave.
3. Lowers Absenteeism
Some of the main causes of absenteeism are – health issues, low workplace morale, stress, childcare issues, disengagement. Absenteeism makes employees demotivated, pushes back deadlines and decreases their overall productivity.
43% of employees agree that having benefits helps them take lesser leaves.
Employees are less likely to take leaves for their health issues if your company can offer them medical insurance. Similarly for tuition classes, family issues, parenting problems and other issues faced by employees.
4. Improves Recruiting
Considering the benefits package of a company before applying for a job is a real practice done by employees. Even to the extent that 55% of employees would do a job that pays less but has amazing benefits packages.
57% employees say benefits are their top considerations while applying for a job.
Therefore, the benefits you provide can help you greatly to attract and retain skilled employees. Give them the benefits they need in order to get the best out of them.
5. Increases Retention
Employee retention refers to the ability of the employer to hold on to his employees. And one of the best and easiest way to retain your best employees is providing them the best benefits.
51% of employees are planning to leave their jobs.
In order to stay at a company, employees need to be happy. And providing them the right benefits will surely make them feel valued and want to remain at the company.
Takeaway
Regardless of the size, industry or country employees are a company’s most valuable asset. Providing your employees with the right kind of benefits and perks is important for attracting and holding on to your top talent. It also helps in making your company more diverse and inclusive. You can develop these benefits depending on the size of your company. Another way is by understanding the needs and interests of your employees. But no matter how you do it, it is of utmost importance that you have a comprehensive and dynamic employee benefits plan.