The Importance of Benefits & Perks
As the talent market becomes more and more competitive, companies are increasing their focus on employee benefits as a tool to attract and retain top talent.
Today, rewarding your people is more than just about improving their financial gain. People wanted to be rewarded in ways that benefit their wellbeing and lifestyle. Doing so will help keep them motivated, loyal and productive.
The highest scoring attribute in 2018
In 2018, using the Employer Brand Index, we analyzed the external employer brand perception of some of the biggest companies in the world; ranging from the FMCG industry to the tech space, and the pharmaceutical industry to the aerospace industry.
We looked at the conversations candidates, employees and alumni were having online about some of the biggest companies in the world and found that, on average, Benefits & Perks was the best scoring attribute (2.36) our of 15 other other attributes.
Some of the most common subthemes we found in our Employer Brand Index reports were:
- Unlimited vacation policies
- Free food, snacks & lunches
- Tuition reimbursement
- Gym memberships
- Product discounts
- Medical, dental & healthcare
These were the benefits and perks that employees found most important to them.
But why is it important for your company?
According to the US Chamber of Commerce Foundation, more than 50% of millennials agree that a quality benefits package influences their choice of employer and over 60% say that benefits are an important reason in staying with an employer.
But benefits aren’t just made to satisfy your employees. They can and will improve your business in a number of ways:
Minimize turnover rate
For many employers, employee attrition is key. Keeping your best employees is vital to sustaining your success. According to FlexJobs, almost 80% of surveyed employees new benefits to a pay raise. Therefore if you offer competitive perks that they can’t find at other employers, it’s unlikely that they’ll turn their backs on your company.
Better job performance
Improving your benefits package and investing in the offering will show your people that you are investing in them. Improving your benefits will keep employees loyal, and as a result of this loyalty, they will work harder.
The better your employees perform, the better the company performs.
Improve talent attraction
According to EBRI, 78% of people said that the employee benefits package is very or extremely important in their decision to accept or reject a job.
It’s tough out there and a good salary may not be enough for your employees. People want to be rewarded with things that improve their wellbeing and lifestyle. Offering these things might just land you the star employee you have been waiting for.
“Benefits & perks are too expensive”
Sure, as a small business owner, providing proper health and dental care to your employees might just be too expensive. But there are many low-cost employee benefits business owners can consider such as:
- Free food & snacks
- Commuter benefits to help people pay for their transportation
- Fitness stipends or gym memberships
- Flexitime or work-from-home days
- Sabbaticals every now and then to help them rest
- Unlimited vacation time
More than these, you might consider casual dress days and bring your dog-to-work-days. There’s plenty of options you can consider that don’t cost a fortune.
All in all, I’m not saying don’t pay your employees well. Pay them well, but don’t forget to reward them too. Sometimes the little things can go a long way!