Top Five Reasons Why Companies Offer Employee Benefits
The primary objective of offering workplace and job-related benefits is to look after employee health and wellbeing. To improve the workforce’s lives, companies offer a variety of workplace benefits.
An average benefit and compensation package includes:
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Medical insurance
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Dental insurance
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Vision insurance
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Sick leave
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Vacation time
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Parental leave
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Retirement plan
However, most businesses offer various other perks to compete with similar companies within the industry. From a cost point of view, benefits packages might seem like an unnecessary cost, but did you know that excellent employee benefits can indirectly help your business thrive? It means that employee benefits serve as an investment rather than an expense. To elaborate on this further, here are the top five reasons why companies offer employee benefits:
1. Minimize Employee Turnover
Finding new talent costs a lot more than retaining current employees. A report studying the state of workplace mental health in Australia concluded that one in five employees (21%) had taken time off work in the past 12 months due to stress, anxiety, depression, and other mental health factors. When companies fail to address these evils corroding the workplace, employees become more inclined to quitting their jobs, maximizing a company’s turnover ratio. It explains why the majority of the employee benefits Australia revolve around employee engagement and security.
When employees are offered a benefits package that ensures their stability and security, they are more likely to stay loyal to the organization. Your business can increase its employee retention rate by offering an above-average employee benefits package that targets essential components of a worker’s daily life. An ideal package can include benefits like paid leaves, flexible working arrangements, workplace entertainment, rewards and recognition programs, etc. All these benefits offer employees several reasons to stick around so a company can enjoy long-term contracts with worthy employees.
2. Attract Talent To The Company
A solid employee benefits package attracts the most efficient employees to your organization who can help your business succeed. If you want your company to do well in the industry, you need to be able to hire the cream of the crop. However, if your organization doesn’t offer a good benefits package, not many will be interested in working for the company. To win the “talent acquisition” war and secure the most qualified employees, companies often compete by offering exceptional benefits alongside handsome pay.
The best candidates tend to be inclined to work in a company that offers the best benefits program as these perks make them feel valued. According to Forbes, benefits and compensation top the list of factors that matter most to recruits. Therefore, to stand a chance in attracting great employees, your company has to afford in-demand and unique employee benefits that catch the attention of the ideal employee.
3. Boost Workforce Health
Employees work better in the workplace when they feel better. Your organization can add value to your company’s workplace experience by offering substantial health and entertainment benefits that positively influence the workforce’s emotional, mental, social, and physical wellbeing. Some good examples of these health and wellness benefits include health insurance, paid leaves and holidays, free food in the workplace cafeteria, etc. These benefits provide people with a sense of safety and ample productive breaks that protect their interests.
Businesses that don’t provide these benefits witness a gloomy workplace environment, fostering few chances for healthy and open communication between coworkers. This environment is regarded as a virus that spreads with contact in the corporate world, creating an unhealthy workplace pandemic. Therefore, your organization must depend on several health and wellness benefits to ensure that employees feel energetic and motivated.
4. Enhance Employee Productivity
Did you know that an employee’s productivity is directly related to their happiness? A Forbes report reads happy employees = hefty profits. The productivity levels are challenging to manage post-pandemic as several employees struggle with maintaining a work-life balance, safeguarding their health from the virus, taking preventive measures, and still communicating well. However, when a talented workforce is provided with ample benefits, they stop worrying about the stressors above and are likely to develop good workflow and processes.
Companies must carefully curate a benefit plan by analyzing their employees’ needs and preferences. Giving employees precisely what they want is the key to ensuring their workplace happiness. When done right, employees feel valued and excited to be a part of your company. A high sense of job satisfaction is also developed, resulting in overall engagement and productivity. Therefore, to increase workforce dedication and productivity, your company must address their needs by offering excellent benefits and compensation plans.
5. Increase Employee Loyalty
Loyal employees tend to do their best work and perform to the highest standards without the management monitoring their performance. These employees are genuinely invested in your company’s success, not just the pay. You can increase employee loyalty by giving them a chance to enjoy their work and express how much their services are valued.
Workplace benefits that focus on lifestyle choices and leisure activities create a feel-good atmosphere that inspires employee loyalty. It’s simple - when companies care for their employee’s personal and professional needs, they convey a message of commitment to their employees. Therefore, employees feel the need to return this sense of loyalty by bringing their best behavior and talent to work. Thus, an endless cycle of devotion is created, which benefits both the company and employees in the long run.
Conclusion
A competitive employee benefits package allows a company to experience all the above advantages. It explains why several organizations these days are vested in creating ideal packages, depending on their budget and workforce needs. These benefit packages may indeed cost a company a lot initially. However, soon the investment starts to pay off, and your company can enjoy the rewards of a healthy, productive, and loyal workforce. Remember to sow the right seeds to reap the best - it will all be worth it in the end.