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Employee Benefits: Types, Examples and importance

Employee Benefits

Employee Benefits

Employee Benefits: Definition

Employee benefits are defined as the non-wage compensation provided to employees by an organization in addition to their normal salaries or wages.

These benefits may include, group insurance (health, dental, life etc.) retirement benefits, education loan, other loans (house loan, vehicle loan etc), sick leaves, vacation as well as flexible alternative arrangements.

In an organization, workforce is the most valuable asset and is important for an organization to understand their needs and help them be engaged and satisfied. Employee benefits when offered to the employees act as an attribute for better performance and support for your employees.

With rapid globalization and organizations looking at massive expansion not only in the countries where they are set up but also across the globe, is a key indicator for giving employees the flexibility to work at the hours most convenient to them.

For example consider an organization that is based out of the states and has its branches in Germany, Latin America, Asia, and Australia. The workforce engaged with this organization have different working hours according to the continent they are in. If the organization is providing flexible working hours, it will be suitable for the employees to effectively communicate with each other at the hours most appropriate for them.

This is just one example of employee benefits. Let us explore in this blog the other examples of employee benefits that will help you keep your staff engaged and happy.

Learn more: 30 Employee Satisfaction Survey Questions you Cannot Afford to Miss!

8 Examples of Employee Benefits for a Greater Employee Commitment

1. Cover the Medical Expenses and Insurance Cost

As goes an old saying, “health is wealth”. If you want your employees to be happy, keep them healthy and fit! To build the level of commitment from your employees it is essential that you provide them with benefits first. The first thing you need to do is pen down a medical coverage plan that covers their medical expenses and insurance. You can also provide them with:

A. Offer them with facilities to exercise

Your workforce will be enthusiastic to have space to work out and stay fit. This will not only save you time and money in the number of lost working days but will also facilitate a healthy environment which will result in less number of sick days marked. And it should be mentioned that turning a room in your office into a workout space is way cheaper than you can imagine. A healthy work environment not only keeps a person fit but also relieves them of stress and this is scientifically proven.

There are many organizations that incorporate this work culture into their routine, there are other organizations that offer to pay the cost of membership for their employees. Google is one such organization that promotes a healthy lifestyle.

B. Start with a health and fitness course

One of the best ways to promote individual health is by having your employees participate in health awareness sessions and exercise-related competencies. To reward their efforts announce the winner if you are conducting competitions and motivate others to participate in such get-togethers, to promote health and fitness amongst your employees.

2. Sponsor Events for your Employees

People often stress when they have a lot of work and deadlines to meet. To help your employees lower their stress levels, you should organize social meetings and promote the satisfaction of your employees in general. Many organizations have a “Friday” culture where there are different kinds of recreational activities included during the day. Going to team dinners, sponsoring karaoke nights, bowling, go-karting etc are some examples of recreation you can often include during your work week.

3. No Dress Code!

A study conducted by QuestionPro revealed that organizations that do not follow strict dress codes have happier employees. A whopping 94% employees said they were a lot happier with no dress code policy at work. There are many organizations who have adopted and practice a certain standard of casual dressing and if those standards are met by the employees it is a good adaptation for them as well as the organization.

4. Collect Examples of Benefits Through Employee Surveys

How common is it to see organizations conduct employee surveys? Very common right! But, how common is it to see the organization take action on the feedback that is provided by the employees? No very often right?

Not taking actions based on the result will not only decrease the response rates of the deployed surveys, but it will also create a negative impression of your surveys. You don’t need to bombard your employees with a 20 question survey. Ask them just one powerful survey question, the employee Net Promoter Score Question:

“Considering your overall experience with our organization, on a scale from 0-10, how likely are you to recommend this organization to your family and friends?”

A quarterly or a half-yearly survey will also help you in finding out trends with respect to the levels of commitment and satisfaction of your workforce. Collect and act on their responses and you will be surprised with the changes in the levels of engagement of your employees.

5. Involve your Employees in Organizational Decisions and Policies

Another good example of benefits for employees is to involve them in the policies and decision making within the organization. A weekly meeting is a good start to keeping your employees aligned with what is going on in the organization, what are the developments or changes the organization is aiming to achieve and what role employees are bound to play in it. Get feedback from your employees before implementing these changes and make them a part of the process.

6. Promote Effective Communication

Create a work culture that promotes effective communication. As Dale Carnegie says, “Communication is a dialogue, not a monologue.” Communicate with a reason with your employees and the reason should be to keep them updated with all that is happening in the organization. Promote the open door policy and give your workforce the voice they are looking for. Transparent communication often opens the door for a better belief system.

7. Motivate your Employees

Organizations stagnate, sales dip all-time low, there is a sudden rise in employee attrition and you experience financial losses. All these are signs of a disengaged and highly unmotivated workforce. To avoid such a sudden downfall make sure to keep your employees motivated and enthusiastic towards their work, don’t let employees lose interest in their work, make sure you know their needs and implement immediately any changes that might positively affect their performance.

8. Labor Autonomy

Share goals, strategies, and plans and make your employees own their tasks. Give them the freedom to think out of the box and create an environment that significantly reduces boredom in the workplace. Committed employees always work harder and keep things moving. Appreciate their levels of commitment.

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