Have you ever questioned if employee benefits are worth the expense and extra administrative tasks associated with them? After all, good salaries are significant incentives, but so are good benefits. Employee benefits, also known as perks, are provided to employees in addition to their agreed salaries and commissions. A benefits package can vary depending on the business and the individual employees. They may include health insurance contributions, payable pensions fitness/wellness programmes, etc. Granting such benefits to your employees is important as it shows them you are invested in them and not just your business.
But benefits aren’t just beneficial for employees. They can improve your business too. The advantage of such an offering from your business range from increased loyalty, productivity and attendance. Find out below the effect of employee benefits, and how offering them to your employee’s can benefit your business too.
Enhanced Loyalty & Reduced Turnover
Offering employee benefits to your employees is more likely to create a sense of loyalty to you and your business. When employees are loyal to your company, they are more likely to work for you for an extended period. It is difficult for a business to move forward in their industry when employees are coming and going – no business wants a high turnover. If this happens, it can be hard to build a strong team with high levels of talent that your company needs. By investing in your workforce, it shows that you have their interests at heart and appreciate their job performance. Fortunately, beginning an employee benefits program or adding more value to your current one can convince employees to stay – especially for those who may be critical to your business.
In tandem to this, by providing benefits, you improve your ability to attract talent to your business. You might believe a large salary offering is what attracts employees. But benefits are equally as significant to candidates. For more on employee retention, see our blog 3 Ways to Improve Employee Retention.
Increased Productivity & Job Performance
A lack of benefits can affect your employees’ abilities to concentrate and be productive, though you might wonder how? As is often the case, employees might be anxious about things in their personal lives, which bleed into their professional lives. These can be things such as childcare, health, finances plus many more. If employees are worried about such things, they aren’t concentrating on work and their job performance can be affected. Concerned, worried employees often lack focus at work.
Offering benefits that will help employees alleviate their stress, such as flex-time or remote working, can be advantageous to your company. When employees can take care of issues outside of work, they can be more present at work. As a consequence, employees are ready to work harder, which leads to higher productivity and greater quality work. While offering an employee such benefits that may have an initial cost, the long-term advantages are apparent.
Improved Attendance & Healthier Employees
One of the major causes of missing work is health issues. So, employees are less likely to abstain from work for health reasons when they have health benefits provided for. Employees who are offered health benefits are less likely to dodge going to the doctor and are less likely to avoid a medical procedure if needed. Also by providing sick leave, employees who are ill and possibly contagious won’t infect other members of the team. The result should be an all over healthier workforce.
If you offer health and sick leave benefits, your team should be in moderately good health. Employees with fewer health problems experience less sick days, fewer visits to the doctor, and spend their time working in your company, bringing the best versions of themselves to work each day.
While extending employee benefits may cost a bit more, to begin with, the long-term advantages outweigh those costs and add to your overall business success by helping to create a reliable, loyal and healthy workforce. Putting your company in the position of maximising your productivity and profits, positioning your business at the top of your industry.