HR Department – Why Is It Important?
Today, it seems like nobody questions what HR means when they hear it. The abbreviation HR is characteristic […]
More and more companies are realizing that a happy employee is an efficient employee. How can you make the workplace not just associated with an unpleasant obligation? One of the most effective tools for influencing employee motivation is employee benefits. From an employer’s perspective, investing in employee benefits is a strategy that brings multi-dimensional advantages. In today’s competitive business world, attracting and retaining the best talent is crucial, and the right benefits can be a decisive factor. For employees, it’s a guarantee of well-being at work and the possibility of maintaining a work-life balance. If you are an employer, you will find ideas here to strengthen your company, satisfy your team, increase employee loyalty and engagement, and build a positive company image in the job market.
From this article, you will learn:
Employee benefits, also known as non-salary perks, are various advantages that an employer offers to their employees beyond the standard salary. Their goal is to increase the attractiveness of the workplace, improve employees’ quality of life, and motivate and retain talented individuals within the company. Benefits can take many forms—from classic health insurance to more modern solutions like subscriptions to meditation apps.
The first employee benefits aimed to retain employees and minimize absences due to illness. They appeared during the Industrial Revolution in the 19th century when employers noticed the correlation between workers’ health and happiness and their productivity. Consequently, some factories began offering basic healthcare and housing for their employees. Over the years, benefits expanded to include retirement insurance and paid vacations. What is standard for us today, without which we can’t imagine normal functioning, was once a luxury not available to everyone. The dynamic socio-economic development and increased demand for workers led companies to offer more attractive benefits packages. Employee benefits have become more widespread and diverse.
Modern employee benefits are personalized and tailored to the individual needs of employees. Compared to benefits from a few decades ago, they resemble more of an exclusive addition to the salary. Companies offer a wide range of options, from childcare support to professional development programs to mental well-being benefits. Employers understand that investing in employee well-being brings numerous advantages. The history of company benefits shows how much employees’ needs have changed and how companies are adapting their offers to changing conditions and expectations. This change can be observed in just the past five years. The biggest influence on the perception of employees’ needs was the 2020 pandemic. While remote work was a luxury for the few before COVID, it is now a fundamental solution.
Employee benefits can work wonders for satisfaction, motivation, and loyalty, but for them to make sense and bring the expected benefits to both employees and employers, you need to consider the following aspects:
Employee benefits should be tailored to their real needs and expectations. Regularly survey satisfaction to understand what is most important to them. For example, young parents will value support in childcare, while young employees entering the job market are likely more interested in professional development and education opportunities.
Offer choices. Diverse benefit packages that allow employees to choose from various options are more attractive. Flexibility in selecting benefits better matches individual needs, increasing their value and effectiveness. Additionally, it shows that the employer truly cares about employee well-being. Employees will appreciate this option.
Employees must be aware of available benefits and know how to use them. Clear communication and education about benefits are crucial. Regular reminders and easy access to information help employees fully utilize the available advantages. Ensure that information about benefit availability is visible and reaches the employee.
Benefits should support the organizational culture and company values. If the company emphasizes a healthy lifestyle, wellness programs and fitness app subscriptions will be welcomed. If professional development is a priority, offer opportunities to participate in training and courses.
Which additional benefits at work are the most popular today? Can a company car for private use, a company phone, and private medical care still attract an employee? Over the past few years, we have started to care more about health (both physical and mental), a sense of security, and financial comfort. These factors have significantly shaped the most popular employee benefits. Here is the top seven of the most popular benefits at work:
Traditional benefits are an attractive addition to the salary, but increasingly, modern solutions are deciding the choice of employer. Here are five unique benefit proposals that can impress potential and current employees in the IT industry: