Offering benefits to your employees is an effective way to set your business apart from competitors and it plays a major role in employee recruitment and retention.
Benefits give employees a sense of worth, increasing their loyalty to your company and inspiring them to stay long-term. Furthermore, these programs help reduce absenteeism and boost productivity levels.
Benefits for Employees
Employee benefits offer employees a sense of value and their satisfaction with the company can have an enormous impact on their job performance. Furthermore, providing these incentives encourages team members to be more productive, which in turn saves you money from recruiting and training expenses.
Nearly one third of employees say work benefits are the primary reason they choose to remain at their current jobs. And that’s important if you want to retain them and make your business more competitive.
Employee benefits typically consist of medical insurance (required by larger companies), dental and vision coverage, life insurance, retirement planning and severance pay. Some may be required by law while others can be chosen at your discretion.
Benefits for Employers
Offering employees benefits that are both competitive and meaningful can have a major impact on their wellbeing and productivity. Employees who feel their companies are invested in them and their long-term career success tend to stay with the company longer, feeling motivated to perform at their best.
Employers can offer their employees more than just traditional benefits like medical insurance. By providing gym memberships and free meals at work, employers can promote a healthier lifestyle that in turn leads to increased productivity at work.
Some employee benefits are mandatory by law, while others are optional. Which benefits an employer opts to provide depends on their industry and business situation.
Benefits for Recruiting
Recruiting is a crucial element of any business. A well-run recruitment process can bring in top candidates for open positions, helping reduce employee turnover rates.
Additionally, offering benefits and perks is an effective way to demonstrate to candidates how important they will be to your company’s success. Employers who demonstrate this enthusiasm often attract top talent.
Benefits that job seekers value include paid time off, retirement plans and dental insurance. Some companies even provide gym memberships as well as health-related perks like massages or yoga classes.
A competitive employee benefits package is one of the key determinants in whether a candidate accepts or declines an employment offer. Unfortunately, many employers underestimate how essential these packages can be to their recruiting success.
Therefore, it’s essential that your recruiters agree on how benefits should be presented and explained. Doing so ensures candidates you hire have a compelling reason to select your company over other potential employers in the pipeline.
Benefits for Retaining Employees
Maintaining employee engagement and happiness is an integral component of building and running a successful business. The costs associated with turnover – such as recruiting, hiring and training someone new – can be enormous.
High turnover not only reduces employee productivity, but it can create gaps in the workforce. It may even result in diminished client relationships as clients experience fewer people working at the same company.
Employers who retain employees often experience significant benefits, such as improved corporate performance and greater employee satisfaction. It may even result in higher revenue.
Offering competitive benefits packages can attract top talent and keep them happy. Furthermore, providing a variety of other employee perks will enhance the employment experience and foster greater loyalty among your workers.
