More entrepreneurs nowadays attract potential staff with a comprehensive benefits package that includes extra perks. Be it a wellness program, tuition reimbursement, or free meals, employers go beyond the statutory benefits, such as worker’s compensation insurance or paid sick leave. This way, business owners show they care for the well-being of their staff, as they’re aware that employees are key to their business’s success. But how and why can employee benefits help your company grow?
Your workforce is your organization’s number one asset, which, if motivated and appreciated, can contribute tremendously to your company's growth. Additional employee benefits can do exactly that - enhance engagement, improve motivation and performance, as well as promote staff retention and loyalty.
Keep reading to find out more about the invaluable role of employee benefits.
Key Takeaway
- Employee benefits are additional perks employees receive apart from their salary.
- These benefits can include health and medical insurance, free meals, sick leave, parental leave, and more.
- A company that offers a comprehensive employee benefits packages to its staff has higher chances of employee retention, driving successful business, and having a better reputation in the industry.
Advantages of Employee Benefits
Whether you’re a CEO or manage a large fleet of workers, you’re well aware that employees are the backbone of any organization, who can enable its growth and success.
They contribute to your company's vision and perform tasks that drive profitability. Thus, providing your workforce with comprehensive employee benefits is not only beneficial for the workers but also for your business.
From child care support and maternity leave to free food at work and mobility benefits, any additional employee perks will surely pay off. Your staff will feel appreciated and motivated to excel in their performance.
Employee Benefits Examples
Common employee benefits, you can consider providing your team with, are as follows:
| Benefit Type | Benefit Example |
|---|---|
| Health Benefits | Health, dental, vision, psychological support, family medical treatment |
| Financial Benefits | 401(K) plans, stock options, bonuses, bonuses |
| Development Benefits | Tuition reimbursement, conferences |
| Lifestyle Benefits | Mobility benefits, remote work allowance |
| Meal Perks | Free meals, drinks, and snacks at the office |
| Other Perks | Flexible schedules, gym memberships, extended parental leave, on-site childcare centers |
Why Are Benefits Strategically Important to Employers?
Employee benefits are strategically important to employers because they enhance staff loyalty to the organization and, thus, improve retention rates. According to a survey, 71% of employees consider that employee perks greatly influence their loyalty and performance. They would stay in their current job if they feel supported and valued.
In addition, when workers feel financially and medically secure and not worrying about, say, commuting costs or payment deductions when sick, they show their appreciation through improved productivity.
Last but not least, job perks are strategically important to employers because they enhance the company’s reputation and brand image. When you care for your staff, it speaks a lot about your sustainable work culture. In other words, companies with a broad set of perks enjoy a positive reputation in the industry.
Why Employee Benefits Drive Company Growth and How?
While good wages are important, a company that provides staff with additional employee benefits and perks is more likely to attract top talent and retain its current employees. In fact, according to an AICPA survey, 80% of employees prefer to work in organizations with better job benefits than companies that offer higher salaries.
Furthermore, perks like paid sick leave or parental leave, can help prevent burnout and excessive stress while allowing your employees to maintain a better work-life balance. This keeps your workforce loyal and pushes them to perform better, which results in your company’s growth.
Also, employee benefits encourage engagement and productivity, which can help you generate more profit.
Hence, investing in your employee benefits is not simply an ethical decision but rather a strategic one. It directly correlates to your company's success.
Importance of Employee Benefits in the Workplace
Let’s see why employee benefits are important and how they can boost your company's success.
Employee Retention
Companies with higher turnover rates do not leave a good impression of their work culture. Hence, a higher retention rate is essential to build a good reputation in the industry.
When a company introduces a robust package of benefits, it shows the organization's commitment to its employees. It ultimately fosters a sense of loyalty and greater job satisfaction, encouraging employees to stay long-term. This further reduces the cost associated with higher turnover and recruitment.
Attracting Top Talent
A great employee benefits package, offered to your workforce, can set your company apart in the competitive market, which helps attract proven professionals who can contribute to the company's growth and innovation.
Skill Development
Benefits, such as training reimbursement, help your team’s further professional development and encourage their continuous learning and upskilling. This sort of support will keep your employees updated with the trending ideas in the industry. It will aslo help nurture their talents and enable them to bring out their best to the table.
Brand Reputation
As mentioned above, the employee benefits, your company offers to staff, can be turned into your competitive advantage. A happy workforce is more engaged and performs better, helping your business grow. Thus, taking good care of your team can give you an edge over your competitors.
How Employee Benefits Influence Motivation and Productivity
There is a clear correlation between your team’s motivation and productivity and the employee benefits you provide them with. If your workers feel financially secure in unexpected life situations or when they retire, have training opportunities at work, and enjoy team dining or wellness events, they will feel far more motivated and productive in their job performance.
How Do Employee Benefits Impact Employee Motivation?
A great employee benefits package is a sure motivational incentive for your team. They feel valued and cared for, which motivates them to excel in every job task they need to complete. This naturally impacts your company’s growth, as well, and facilitates the progress and development of the business and employees alike.
How Employee Benefits Affect Employee Productivity
Better job perks are equal to increased productivity, that’s for sure. Companies that offer comprehensive employee benefits ensure that their staff is less stressed about financial instability in unforeseeable circumstances, such as illness, bereavement, or childbirth. This, of course, contributes to their enhanced job performance upon returning back to work.
Also, additional perks, like free team lunches or wellness programs, enhance teamwork, which inevitably lifts morale, promotes better productivity, and thus,contributes to the positive development of your business.
Related: 9 Benefits of Providing Free Lunch to Employees
Employee Free Meal Benefits: The Key to a Happy Workforce
Providing free food at work is an essential employee perk that workers appreciate. More and more employers consider engaging their employees with subsidized or free team lunches in the workplace. It shows that they care for the well-being of their staff.
Whether company owners outsource their food services and partner with local restaurants or a meal delivery company, or they incorporate cozy on-site eating spaces for employees to socialize over a communal meal, offering food at work is key.
What Are the Benefits of Having Free Food in the Office?
There are a number of advantages of including free meals in your employee benefits package for both your staff and your business.
Let’s see what they are:
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Wellness and nutrition: Consider offering a variety meal options to meet your team’s dietary needs, whether vegetarian, vegan, or gluten-free. A well-fed workforce is happier, healthier, and more productive.
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Engagement: Your team will feel far more engaged and motivate. Discussing work-related stuff over a free office lunch can often generate new creative ideas.
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Team spirit: Free food at work strengthens teamwork, promotes better work culture, and motivates staff to perform better for the rest of the day.
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Appreciation: Your employees will feel valued and appreciated if they can enjoy a free meal at work every day.
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Time-efficiency: Your staff doesn’t have to run to the nearest cafe during lunch break, which can be more time-effective for business.
Related: 5 New Corporate Dining Trends to Embrace: How Cafeteria-style Lunch Is Evolving
Why Employee Benefits Can Help Your Company Grow
Q: What benefits do employees value most?
A: The list of most valued employment benefits is pretty long. According to Remote, a global HR company, flexible work hours, company-sponsored retirement plans, and family health insurance are among the top benefits valued by employees.
Q: What benefits can employers offer to improve employee retention?
A: Benefits like comprehensive health insurance, paid leaves, mental health support, and wellness programs are a few of the benefits that help with employee retention. However, they might vary from organization to organization and the type of industry.
Q: How does employee engagement benefit a company?
A: Happy and engaged employees can help the organic growth of a company. It’s not surprising to see that happy employees are 12% more productive, which ultimately means improved company growth.
Q: How can employees help a business?
A: It is 100% true that employees can make or break a business, so its success significantly depends on the level of their investment in the work they do. As Sir Richard Branson famously quoted: “Your employees are your greatest asset.”.
Q: What are fringe benefits for employees?
A: Some of the most common examples of fringe benefits for employees include health insurance, retirement plan, family & medical leave, and workers' compensation.
Conclusion
It's true that offering an extensive employee benefits package to your staff incurs additional expenses. But the long-term benefit you reap counterbalances the cost of providing these perks.
Key perks, such as health insurance, free meals, commuter benefits, etc., attract top-tier talent, improve retention, and keep employees motivated, which inevitably helps you grow a profitable business!
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