• Aise

Employee Benefit Packages & What They Mean

Updated: Jun 11, 2020

Today, the importance of employee benefits and its impact on a successful operation has never been greater.

Retaining employees and increasing their satisfaction and productivity is imperative for accomplishing business goals. In fact, employees who are very satisfied with benefits are almost 4x more likely to be very satisfied with their jobs (MetLife).

Before diving into deeper waters, let’s talk about the types of benefits companies are currently providing, along with other available job perks, all part of a company’s employee benefit definition.

Types of Employee Benefit & Perks

Commonly offered benefit programs include health insurance, vision/dental insurance, life insurance, paid vacation, retirement benefits such as a 401 k plan, and so on. In no specific order, we’re going to outline the top 10 employee benefits and perks that are beginning to gain a larger employer following.

  1. Financial Wellness Programs: As we’ve mentioned before, this program aims at reducing employee stress by providing useful insight into how to best manage income, set aside savings, and rid themselves of debt. Studies by Prudential have shown that roughly 30% of employees are distracted at work due to financial troubles. All the more reason for companies to integrate a financial element to their wellness programs.

  2. Paid Family Leave: Intended to help new parents, guardians, or caregivers. Each year, more U.S. companies understand the added financial and mental stress and gradually lean toward this program. A PRRI study observed that about 31% of all Americans found child care a serious financial issue.

  3. Flexible Work Schedule: Many Several employees decide on a job with this sole benefit in mind. Work-life balance is an important deciding factor, as 86% of employees value "flexible scheduling" and rate it "highly valuable" or "valuable," 50% of organizations offer flexible scheduling programs. (Deloitte, 2018)

  4. Free Food/Snacks: Surprisingly, something as simple as having a pizza day or providing free snacks in the workplace has a positive impact on satisfaction. A study by Peapod sampled 1,000 full-time workers and found that 57% were “very” or “extremely happy” with their employment. However, that proportion soared to 67% where free food was offered. A happy and fed worker is a more engaged worker!

  5. Fitness/Active Incentives: It’s a little known fact that exercise is the key to mental and physical well-being. By offering fitness incentives, such as company exercise classes or discounted gym memberships, both employers and employees stand to benefit. Employers have healthier, more vigilant workers resulting in lower healthcare costs, and employees feel better mentally and physically, allowing for more productive work.

  6. Tuition Repayment: As student debt rises at an exponential rate, more graduates are seeking assistance for their student loans from employers. According to a 2018 SHRM discovery, only 4% of U.S. companies offer some form of repayment program for student loans.

  7. Working Remotely: Employees love having the option of accomplishing work from home. Not only does it offer a more versatile working environment, but it also saves employees money and can result in decreased stress and increased satisfaction. A study by Owl Labs observed 1,200 participants aged 22-65 and found interesting results. Not only were employees happier, but 91% claimed to have a better work-life balance, 78% had less stress, and 78% attributed higher satisfaction due to a lack of commuting.

  8. Shortened Work Week: While this perk may not be available to all businesses, employees are likely to be happier when working a shorter week. Their dedication towards deadlines and their engagement is also likely to be greater. For instance, let’s look at Microsoft Japan’s four-day workweek success. In removing 1 day and increasing daily hours, Microsoft Japan reported a 40% increase in productivity and several decreases in areas such as electricity expenses (23%) and less printed paper in August (60%).

  9. Company Provided Technology: Without the right equipment, employees face unnecessary obstacles that hinder them from achieving company goals. In 2018 SHRM found that 56% of companies provided employees cell/smartphones for business and personal use. Having the ability to successfully accomplish work is only as feasible as the means through which employees can complete the work.

  10. Professional Development and Personal Growth: Employees generally want to administer ongoing growth and development of themselves throughout their careers. And, according to Kaplan, professional development is the key as employers can expect increased employee retention, heightened confidence and credibility, improved efficiency, and more.

Why Offer Employee Benefits?

As mentioned, there are several advantages to offering employee benefits. By creating a diverse set of benefit programs, companies can relax more with recruiting, as they become flooded with job seekers.

In recent years, more companies have been moving to expand and modify their benefits. The reasoning behind their actions? The SHRM has seen that retention (72%) and recruiting (58%) were the top reasons for increasing benefits.

Building off this point, Clutch notes that even small businesses should consider offering a variety of benefits as it will draw talented minds and will greatly help retention rates. In choosing to give your employees benefit opportunities, you strengthen employee loyalty and trust. Not only that, but it shows the company’s transparency toward the well-being and health of its employees.

There is a strong correlation that exists between employee benefits and productivity that cannot be ignored. And to create productivity, employees should feel satisfied, happy, and have a strong sense of morale. Healthcare Trends Institute found that 68% of employers say improving employee morale and satisfaction is an important consideration in employee benefits and 67% of employers indicate improved employee health.

While the effects of implementing employee benefits programs may not be immediately noticeable, the long-term impact on employee loyalty, health, satisfaction, and overall productivity is certainly well worth the investment.

What Employers Have Noticed

In their quest to create exceptional benefit programs, employers have come to realize their investment and the ROI on employee benefits.

The following statistics dive deeper into the fruitful results of implementing employee benefits packages:

  • A 2018 SHRM study discovered that companies that use benefits strategically experience better overall company performance, above-average effectiveness in recruitment, and higher retention than companies who don't; company performance: 58% vs. 34%, effectiveness in recruitment: 19% vs. 8%, and effectiveness in retention: 28% vs. 11%.

  • In their discussion of employee benefits and perks, Incentive Magazine claims that “by using personalized perks that are simple and cost-effective, businesses will reap a higher return on investment (ROI) in the areas of employee engagement, morale, recruitment, and retention.”

  • Additionally, Incentive Magazine concluded that companies who nurture a connection with their employees through employee benefits and perks, and build it into their corporate culture, are 44% more likely to have above-average profits than those who neglect to incorporate such policies.

  • A Harvard Business Review study found that on average, employers who invested in comprehensive health and wellness initiatives saw a nearly 3-to-1 return in money saved.

An Investment in Employees is a Worthy Investment

It’s clear to see that providing meaningful benefits for your employees has its merit. And, if these types of benefit programs aren’t offered where you work, it’s best to be vocal about wanting them.

Take initiative by directly speaking with HR, joining relevant committees, or reviewing the employee benefits packages made available through the company intranet, health benefits portal.

Both employers and employees receive value from these programs in different ways. Without healthy, level-minded employees, work may be rushed, late, or lacking the kind of quality companies deem acceptable.

Seeing the types of benefits offered, and how a company’s culture strives to take care of its team further increases employee trust and respect with the employer. This only creates a deeper relationship founded on commitment and strong work ethics.