Employees worldwide have described 2020 as the most difficult year of their careers. The coronavirus pandemic has increased financial stress from wage cutbacks, layoffs, job losses, emotional and bodily strain from pandemic symptoms, and the death of loved ones.
As governments gradually loosen these limitations and individuals return to the workforce, one thing is clear: employees place a higher value on workplace perks that address these issues. Workplace benefits have long been an important element of an employee's remuneration package; nevertheless, the epidemic has underlined their significance.
Employees increasingly view their job perks as an important component of their employment contract. In this article, we'll look at the key advantages and rewards businesses can provide their employees nowadays.
Employee Benefits vs. Compensation: The Core Difference
If you ask, what is the distinction between compensation and benefits? Simply put, compensation includes people's direct earnings or salary. Employees' benefits are covered through perks, which include things like health insurance and stock options, as well as social benefits like parental leave. Here’s a complete guide:
Employee Benefits
Employee benefits are a collection of employee-supplied perks businesses offer to their employees. They can be used to repay employees for their own time or property, or they can be used to give health insurance, life insurance, and other financial aid after retirement.
Employee benefits can take numerous forms, but they are often given as a package that includes medical and health care coverage. Employee benefit plans are classified into three types: health-only plans, short-term disability plans, and long-term disability plans.
Employee Compensation
Employee compensation is what they receive in exchange for their services to your company. The distinction between base pay and compensation is that a complete compensation package sometimes includes an employee's base pay and a variety of extra monetary and non-monetary perks.
Offering a competitive pay plan may assist you in attracting and retaining high-quality personnel, motivating current employees to be productive and successful, improving job satisfaction, and assisting your firm in remaining in compliance with federal, state, and local rules.
Beyond Paychecks: The Importance of Non-Monetary Benefits
Employee perks are an important component of the employee remuneration package and can be a determining factor for applicants with many job offers. They can also help boost employee productivity, engagement, and retention.
According to a recent Society for Human Resource Management poll, 90% of survey respondents consider healthcare an extremely or very significant employee benefit. Flexible work and leave time are very or extraordinarily essential to 83% of respondents.
Employee perks can also assist in boosting employee engagement and productivity. Finally, employee perks can aid in increasing employee retention. According to professionals, 60% of employees rated employee perks as essential when deciding whether to stay with their present job.
Invest in Employee Growth: Creating the Best Employee Benefit Plans
Competitive compensation and benefits have long been factors of attraction and retention. However, with employees increasingly expecting a more holistic job experience, you must look beyond traditional services to stand out in a highly competitive employment market.
We discussed with an expertbusiness advisor in USA how business owners can provide their employees with the best perks. Let's look at the top standard and non-traditional employee perks that matter to potential and current employees.
Insurance for Differently-Abled
If a worker gets disabled or cannot work, the employer pays the person's wage. A corporation can provide short-term or long-term disability insurance based on the employee's needs. Short-term insurance protects an employee for up to six months, but long-term insurance covers a worker's career.
Options for Remote Work
Remote or hybrid employees can save time and money on commuting, complete domestic responsibilities, and get exercise, all of which lessen their stress. Fully remote staff may be able to relocate to a different area of the nation to be closer to family, save money, and so on – all while remaining with your firm.
Options on Stock
Some firm grants the employee the right to purchase shares in the company at a specific price by a certain date. In general, this pricing is cheaper than the market. This gives employees a sense of ownership over something they are helping to develop. It helps them feel like they are a part of the company.
Life Advantages
Life insurance assures that if an employee dies, this insurance benefits the employee's family. This is usually for funeral expenses and continued living expenditures. AD&D Insurance benefit pays out money to the employee or their family in case of an accident-related death or dismemberment.
Tuition Reimbursement
These schemes assist employees in furthering their education or seeking professional development opportunities. Employers may reimburse employees for qualified educational expenditures such as tuition, textbooks, or certification courses in part or whole. This perk encourages lifelong learning and job growth.
Retirement Plans
Retirement benefits are monies set aside for workers to utilize as an income or pension after they retire. The retirement savings account is an appealing perk for any employee that allows workers to set away a percentage of their pay for long-term investments. Employers routinely make contributions to their employees' retirement plans.
Health Benefits
Health insurance coverage benefits your employees, but they are not the only ones. Healthy workers use fewer sick days and are more productive, which is excellent news. Consider providing extra health benefits like dental and vision insurance to set your organization distinct. Because every healthcare plan does not cover this sort of care, it might be the deciding factor for the candidate you want.
Paid Holidays
As the name indicates, they are benefits that pay an employee even while they are absent from work. This benefit is expanded with unlimited vacation. Many firms that offer this benefit have discovered that it is the most popular among their employees. Employees also take about the same amount of vacation days as before.
Four-Day Working
Another global trend is the four-day workweek. Some organizations do this by allowing their staff to decrease their workweek to 32 hours, while others require employees to work 10 hours daily for four days to maintain a 40-hour workweek. You implement a voluntary program in which workers work 10-hour days in return for a three-day weekend.
Parental Policies
The typical maternity leave is 12 weeks, but the family needs additional time with the newborn or recently adopted kid. Allow new parents to take as much time off as they like following the birth or adoption of their children, with no consequences, such as a lack of promotions or income rises, during this time.
Free Food and Beverages
Who doesn't enjoy getting free food, sweets, coffee, or beer? Google is well-known for its on-site facilities, such as cafés serving various cuisines, from healthy selections to sweets. You could, for example, purchase lunch or surprise your team with coffee and doughnuts twice a week. Alternatively, take the staff to lunch or supper once a month.
Mental Health Workshops
Showing your employees that you care about their mental health demonstrates that they are more than simply employees to you. Investing in mental health seminars provides your staff with the resources to care for their mental health both within and outside the workplace. These courses include where and how to obtain therapy, coping skills, and requesting time off.
Referral Bonuses
Show your staff that you trust their judgment by providing referral bonuses for personnel hired through internal referrals. Some firms pay referral bonuses when the person signs their offer letter, while others only pay them once the employee has been with the company for a set period.
Potlucks and Bonding Activities
Employee bonding is a critical component of every company's culture. It aids in the development of trust and camaraderie inside an organization. Organize potlucks, volunteer events, or business picnics to help workers get to know one another and form relationships to boost the office dynamic. It can also serve as a waiting area for new employees adapting to life in their new office.
Fitness and Wellness Initiatives
A healthy staff may make a significant impact on your company. Subsidized gym memberships and frequent access to massage treatment or acupuncture are some ideas for wellness initiatives. You may also include an on-site gym with treadmills and yoga mats, healthy food alternatives in the cafeteria, and incentives for calling in sick when unwell.
Strengthen Your Business Core
Small yet thoughtful and pleasant acts have enough weight to influence behavior. They make workers feel valued for their efforts and contribute to a positive work environment. Furthermore, certain non-traditional perks are relatively inexpensive to implement.
If you need more funds, tailor your offers to your workers' demands and overall business goals. To be sure, undertake a fast self-evaluation to find cost-effective benefits to help you stand out. Involve your staff in decision-making to guarantee that the advantages you intend to adopt are valued.
Get Professional Help for More Benefits
The lean business consulting method simplifies developing successful employee benefits and pay schemes. This strategy guarantees that resources are appropriately distributed per the company's strategic goals by focusing on vital aspects and avoiding waste.
The strategy discovers the most significant perks for employees and the firm through data-driven analysis, maximizing the balance between attraction, retention, and cost-effectiveness. Reach out to Lean Business Stability today to learn about the methodology and uncover the secrets to a happy workspace.