Employee benefits? Health insurance. Time off. Bonuses and extra holidays, and more. So what else is there to know? Go deeper and you’ll realise there are currently some interesting strategic changes afoot in this important area of employee remuneration as a result of the pandemic and other global factors. Here’s everything you need to know…
We all know about employee benefits, don’t we? Basically, they are any kind of tangible or intangible compensation given to employees apart from their base salary. In fact, any kind of non-wage gain attached to an employee’s position can be classified as an employee benefit, be it mandatory or voluntarily given by an employer.
Employees of course love them, and they are recognised as strong motivators to change jobs. For example, a 2022 Randstad Employer Brand survey shows that 61% of the global workforce considers salaries and benefits the top reason for choosing an employer.
Correspondingly, employers realise that to attract and retain the talent they need they must ensure an attractive benefits package for workers.
Types of Employee Benefits
Traditionally, the major types of employee benefits have been grouped around key categories such as:
- Insurance; for example health insurance, life insurance, disability insurance etc
- Retirement plans, superannuation etc
- Additional compensation; bonuses, equipment, share options, vehicles, food etc
- Time off – four day week, extra holidays
But there has been some change in emphasis within these categories in recent years as a result of the pandemic. For example, flexible hours and work from home options now feature prominently in many company’s benefits profile, as does an emphasis on mental and physical health.
This global trend towards work/life balance and health & wellness is also being mirrored and magnified in Asia. According to Human Resources Director (HRD), the top benefits in Asia are now leaning towards:
- Employees’ well-being (four dimensions of well-being: physical, emotional, financial, and social)
- A flexible approach to benefits, where each generation receives different yet meaningful benefits.
Strategise your Employee Benefits as part of your corporate brand
It’s interesting that this global re-ordering and realignment of benefits – the direct result of the pandemic – has made many employers realise that the benefits packages they offer are about much more than just dollars and ‘sense’ – they are also an integral part of your corporate brand.
Today, it’s important to show that your organisation values its employees above all else, and benefits programs that prioritise their physical, mental and emotional well-being both enrich your culture and help build you brand.
It says a lot about the type of company you are. Especially to prospective employees. And the ‘right’ benefits package can help you in so many ways, in addition to enriching and enhancing the company culture.For example,
A reduction in staff turnover rates – Employee perks can minimize turnover rates since high levels of job satisfaction encourage many employees to look for work elsewhere. An appealing benefits package provides workers with a compelling reason to remain with your firm once they are employed.
A magnet for top talent – An attractive and well-structured employee benefits package gives you a competitive advantage when hiring. With it, you are more likely to recruit higher quality, motivated, and devoted employees. Advertising a good benefits package stimulates interest in your organization, attracting a wide variety of individuals. Excellent perks reflect a healthy corporate culture and may be the decisive factor for a top applicant who has received numerous job offers.
A booster for employee morale – A benefits package may considerably increase employee morale since employees will feel valued. As a result, employee loyalty, productivity, and general contentment with you as their employer grow. It’s important to remember that happy employees will speak your praises outside of work, making it simpler to attract the top prospects employees.
So have you strategized your employee benefits package? Is it helping to build your Employer Brand and your profile, in addition to simply keeping employees happy?
A 2-Step process towards a great employee benefits plan
When creating and implementing a new employee benefits plan for your organization, there are several important factors to consider. First you need to understand the type of workforce you have, what kind of benefits they want, and how this would help them engage better with their job and also build your Employer Brand. Here are some simple steps to follow:
Step 1: Assess your current benefits and also how frequently employees use them. Then look at how this utilization contributes to overall performance – for your employees and your business.
Step 2: Survey employees to put together a new plan, ensuring that the benefits align with all your long-term goals.
When you view your employee benefits programs from a brand building perspective you see beyond simple bribery and position it as a strategic business anchor-point. What seems expensive at first glance might actually save you money in the long run and could turn out to be one of the best moves you’ll make.
Like to know more about global best practice for employee benefits packages and programs? CXC Global has been advising businesses in this field for 30 years now. We are recruitment, workforce management, tax, advisory and administrative services specialists with offices and operations in over 50 countries. Why not contact us today to find out more?