Almost everybody wants to have a secure job rather than a higher-paying job. Usually, it is of personal preference yet people are inclined to security and benefits. What do you think of employee benefits? What will you choose: more employee benefits or high pay? This can be a crucial question that stands while applying for a job. Sometimes the interviewer also asks, if you will go for a job in a small company with a high income or an average income job in a huge corporation? Let’s know about the Importance of Employee Benefits.
It is a fact that employee benefits directly relate to the people who choose a job. At least 79% of working people would like to have new or additional benefits from a job rather than a pay increase. The logic is simple; employee benefits are an ongoing mode of payment for the workers. By which they feel appreciated which leads to productivity and loyalty of the employees. If two jobs are offering equal pay, but one provides some employee benefits. Then, it is more likely you will choose the one with benefits, right? It will be an additional gain you earn so, why not?
Some people even say employee benefits are more important than salary. If you look at the positive aspects of the employee benefits, they are profitable to both employees and employers. This can play a huge role in recruiting and hence, increasing the number and quality of recruits. Let’s see how employee benefits are important and what one should expect from them.
WHAT DO YOU MEAN BY EMPLOYEE BENEFITS?
Employee benefits are the different types of compensation an employee gets above the regular pay. These benefits can be of many forms such as medical insurance, social security, etc. Sometimes the benefits are required to be provided under federal and state laws.
The few benefits to name are; Unemployment insurance, profit sharing, retirement benefits, vacation, social security, life, and health insurance.
Many firms either provide some or all employee benefits for free. Or at a low price which, then is paid from your salary in regular intervals. In recent years, we found that companies are becoming competitive, and thus to attract employees, the companies deliver a wide range of benefits. The first thing to be highlighted when you go for a job these days is flexible work hours, telecommuting options, and student loan repayment assistance.
Before going into the importance and focal points on employee benefits. Let’s get to know the types of employee benefits that are often provided in a corporation.
THE TYPES OF EMPLOYEE BENEFITS
When we group the different employee benefits. The people want to have benefits in four basic categories.
Work benefits –
The work benefits often include the flexibility of working hours, off days, food and beverages at the workplace, skill development, and employee clubs.
Under flexible work hours, it provides the employee to decide their schedule to work. It ensures a sense of not regulating one’s life and the location as well. This encourages the idea of talented people to work in an organized manner. And complete it within a deadline or a time frame such that this isn’t a pressure rather it is a measure of engagement and fun. Also, the beneficiary to holidays, day-offs for civil duties as voting, etc, or parental leave is something the employees value the most.
The benefit to provide skill development under certain job profiles is beneficial to both parties, as the rapid growth of technology, companies, and the market. It demands us to be prepared with new tools and a skillset. Thus, companies offer skill enhancement programs often for new or young employees.
Food and beverages are the essential needs of the day. And while working most of the time, people aren’t aware of how time passes. If you are doing a 9 to 5 job, with the workload you often miss meals. Therefore, the offices providing meal vouchers, or free lunches and coffee are very much appreciated by the employees. It is as the company takes care of them. This also helps to advance healthy eating habits, and promote good health of the employees.
Health benefits –
You must have heard that health is wealth, right? This is true in all aspects. Thus, companies who reflect this idea are likely to get more employment. People will work for you when they see, the company is satisfied with the work. And to provide healthcare, medical leaves, wellness programs generate to offer the same. Some companies even give gym membership including physical, mental, and financial wellness.
Financial benefits –
On top of financial security are pension plans. And other benefits include insurance, personal financial aids.
According to research, pension plans are an important aspect of a job. Because it secures your wages for at least a few years after retirement. Yet, they aren’t on the list of most appreciated benefits which we’ll discuss further.
Insurance and financial benefits are key to thinking of the future. As people want benefits around loans and savings. And to mention the commission & bonus for employees whom they work for is a plus.
Lifestyle benefits –
For anyone, it is crucial to have a work-life balance. So, companies providing the benefit of mobility and small amenities of daily life attract the employees more.
No doubt, the lifestyle benefits are becoming popular over time including legal services, childcare, etc. And the mobility benefits cover the expense of transport, even if you do work from home you need to come to the office from time to time.
These four benefits focus on a broad category including other benefits also. It is not possible to discuss all the employee benefits out there, so this provides an idea of it. And with new companies, new ideas, new employee benefits are coming as well.
Now, let’s see the most appreciated benefits by the people. Because in a single job there can be people of different generations. We need to know which category of employee benefit tops the list. And what is the benefit you must have as an employee? Also, why offer employee benefits? What do companies gain from employee benefits?
IMPORTANT BENEFITS TO THE EMPLOYEES
As mentioned above, the four main categories of employee benefits. Now, are these the one’s employees of all generations seeking? Or are there some specific benefits an employee should look for?
Every benefit has its perks, it’s a matter of preference. But we’ll try to portray which benefit one should look for. So here they are –
- Health insurance and wellness programs: One of the most important components in an employee benefit is health insurance. It covers all the expenses of doctors, hospital rooms, and medication fees. And some may cover the medical treatment of family members as well. These policies can be comprehensive to overall health, dental, and vision insurance. According to the company, they provide the policy on what grounds. The purpose of the policy is to reduce the extra expense involved in medical procedures as these can cost a fortune.
- Paid time off and vacation time: It isn’t mandatory to provide a set of holidays to the employee. But when this is provided people always look forward to it. Because being in a regular full-time job can be exhausting and employees need to rejuvenate. So, if there is paid time off such as Christmas, Thanksgiving, and new year’s. And other religious holidays where one can opt for a day off, this is much appreciated. There can be a certain number of days one can take leave in a single year. And thus, this can be counted as the benefits one should look for.
These two are the benefits most employees seek in a job profile. Other than the mentioned benefits. There are two benefits we will discuss further, which have the focus of a particular generation. Hence, we can’t include the benefits on the top tier. But it holds an important place.
- Life insurance and retirement plans: Nowadays many companies don’t provide life insurance and retirement plans. Because half of the employees are the young generation. And as young people aren’t yet focusing on retirement for at least 40+ years. These benefits are not good for them. On the contrary, old people who are close to 50 are readily happy to get the retirement and life insurance benefits from the company. These include life insurance that is, the protection of family if anything happens to the employee. So, the benefits are paid all at once to a spouse or children. And retirement plans, which consist of funds set aside which are given to the employee after retirement as pension or income after the end of their career.
- Skill development policies: The development of skills is a need for the company as well as for new employees. So, to provide programs of skill development attracts the young people more. And they prefer jobs which help them build new skills.
WHY DO EMPLOYERS PROVIDE EMPLOYEE BENEFITS?
- Improves morale and loyalty – A good workplace morale is essential for productivity and teamwork. Also, unhappy employee results in delayed work compromised quality of work, etc. So, offering benefits packages to boost morale helps in many ways. When employees feel valued and rewarded for their hard work in bonuses or other perks, their loyalty to the company increases.
- Attracting talented employees – Today jobs are not only about a certain amount of pay. With the demanding world, the people also demand a safe and satisfying workspace to invest their time in. Employee benefits are the way of letting people know if they work for you their hard work will be valued. The benefits packages hold a deciding factor for not all but the freshers to begin their career where they feel satisfied.
- Helps to build trust – To provide a workspace where there is engagement and fun around the corner with work is to win one’s heart. With professional relationships also, it is an essential prospect to have trust between employer and employees. Workers are more susceptible to innovation, adaptability, and taking risks if they trust their employer. Hence, taking a step towards success.
- Increased productivity and focus – It is crucial to have your head in the game when you’re involved in work. Providing the benefits, they shape almost the main aspects in one’s personal life, for which they won’t worry about other things while at work.
CONCLUSION
The employee benefits are there to encourage, appreciate and value the hard work people do for their employers. It can be more or less, whatever the employee wants to settle with. The key aspect to note is the benefits are not only for the employee but also benefit the employer. Hence, look into the employee benefits before getting a job. It may be the best spot for you but not the employee benefits you get.
FAQs
- Aren’t employee benefits expensive for employers?
Yes, they might be hard to handle if you are a small business start-up. And it may not be possible to provide employee benefits for a long period. But then, you may count on a different approach to provide appreciation to your employees.
For large corporations, employee benefits are not expensive. Rather you can say, an investment.
- How to find out about employee benefits solutions?
Many companies send out employee benefits news with current benefit changes in plans or solutions. Some companies may have an internal employee benefits information system where you can submit your queries or get advice about the employee benefits. If you are new to employee benefits, you can go to the international foundation of employee benefit plans to get information about the details of benefits plans.
- What determines pay and benefits?
Both pay and benefits are determined by your performance. Yet, there are some benefits which re for all employees. However, the benefits are the compensation above salary. This can be both framed depending upon how you perform and how the company expects you to perform.
