What are Employee Benefits?

Employee benefits can be a powerful tool. Employees love to work for companies that provide benefits, and having good benefits can help an organization show its value. These are three key benefits of employee benefits.

Employees have many options of places to work. Since the Great Resignation, more and more employees are highly selective with where they choose to work. They have options, so they choose the companies that provide them with the experience they need and the benefits they want.

Benefits are key when it comes to recruitment. Employees consider a good benefits package to be one of the most important things they look for when choosing a job. Employees are more likely to choose an organization that offers good benefits than one with the same pay and only the federally required benefits. Essentially, employees want benefits and choose companies that offer them.

Recruiting is also crucial for a company. It takes valuable time and money to train a replacement for an employee who leaves a company, which is why so many companies put an emphasis on retention rate. Employee benefits are a fantastic way to help boost retention and keep employees at a company. That’s because benefits help them feel supported and help their wellbeing, so they have a better experience with the company. Having employee benefits is now essential for recruiting and retaining employees in this current work environment.

Employees want to work for companies that have great values. Most organizations try to have a focus on values that improve the world. Employee benefits are a way to help organizations show their values and let employees live the values. For example, if a company values and wishes to promote charity, paid time off (PTO) and similar benefits can help employees live that value because they’re able to take a day off work (without losing pay) to give back to the community.

Employees want to work for an employer that cares about them and their wellbeing. This aligns with both retention and values: employees will stay when their employers care, and employers with people-oriented values want to support employee wellbeing. 

Including employee benefits can help organizations show employees that they care about them, and that can boost employee morale and improve the workplace environment. Employees will feel happier and healthier at work, and the company benefits because the employees are able to do their best work. Ultimately, most companies find that employee benefits are worth the cost. 

Retirement is a common goal for many Americans. It’s common for companies to help support their employees’ retirement. Retirement benefits can come as a 401k with employer and matched contributions. Other savings accounts are options, and investment plans are also a benefit plan some companies choose.

Time away from work is important to reduce burnout. Because of that, many countries mandate time off. While the US does not mandate it, offering time off benefits can help give companies a competitive edge when it comes to hiring and recruiting. Time off could include sick leave, paid vacation time, bereavement or compassionate time, and parental leave. Including those types of benefits can show employees that the company cares about their wellbeing and their success. 

It is also worth considering other types of time off. Some companies provide time off for employees to receive training or to improve their skills—sometimes to even take a sabbatical. These benefits are also a type of time off, and they can provide companies with a competitive advantage compared to companies that don’t offer those types of benefits. 

There are other benefits (sometimes also called perks) that do not fit into the other categories but can still provide employees with great support and help the company improve hiring:

• Tuition reimbursement
  Many employees are students or interested in taking courses and receiving certifications. Tuition reimbursement allows them to take these courses, and their employer will reimburse them later for some or all the cost of the tuition.

• Corporate discount
  If a company offers goods or services, it can be a benefit to offer employees discounts on those. Some companies might test products or services by offering them at steeply discounted rates for employees to try and enjoy. Some companies—like retail stores—might offer a discount percentage on their goods for employees.

• Performance bonus
  Employees love to be appreciated. Performance bonuses are additional financial rewards when an employee performs exceptionally well. It helps employees feel appreciated and motivates them to perform at their best.

• Office perks
  Nap rooms, a library, a ping pong table, free food, an on-site gym, and more are all office perks. These benefits help make the office a more satisfying and comfortable place to work and help employees feel appreciated.

• Stock options
  Employers can help offer employees lower priced stocks to help them invest in the company and share in the success of their company. Stocks also help employees feel more invested in their company and that they are rewarded for their hard work.

• Wellness programs
  Wellness programs are all about improving employee health, which helps employees feel like their organization cares about them as a person. Healthier employees also perform better. Wellness programs can include step initiatives, health screenings, smoking cessation programs, access to nutritionists, competitions, and more.

• Training
  Employees want to work somewhere where they have the opportunity to continue learning and growing. Providing employees with training programs helps them to sharpen their skills and benefit both themselves and the company.

Millennials are digital natives, and they want technology at work to be easy for them to use and up-to-date. Having advanced and high-end technology helps them feel like they can work better.

Millennials value work-life balance more than previous generations. They are less interested in monetary bonuses and more interested in bonuses that involve more time off work. Paying for a weekend getaway is a more appealing option than a check for Millennial employees.

The millennial generation wants to give back. Helping employees be involved with charity and other forms of corporate social responsibility is appealing to many modern employees.

Millennials more than ever love flexibility with the workday. Millennials do not find 9–5 to be the only way to be productive. Many millennial employees will choose a job with a flexible schedule over a job with higher pay. Offering flexibility is reliable to attract Millennials.

Remote work in some form is what millennials want—even if it’s just one day a week. Millennials love flexible work hours and having a flexible workspace where they do not have to be physically present in an office to perform their duties.

Millennials want to keep learning and growing. Providing ways for them to develop personally is a great way to attract them to your company. For example, book clubs, photography clubs, and other similar clubs are a way for employees to bond over similar interests and to continue to learn and develop themselves.

Offering employee benefits keeps employees wanting to stay at the company. The employees feel that the company cares about their wellbeing, and they want to help support the company as well.

Absenteeism is when employees miss work, and it can cost companies money. Benefits help lower absenteeism because employees have better avenues for taking time off and because they’re generally healthier and more supported.

Employees want to work for a company that offers good benefits, so recruiters can find the best employees.

Employees that have benefits typically want to stay at that company. Ultimately, that saves the company money and time, keeping their best talent in-house.