When you employ people, you automatically think about the job they will be doing for the company and how much they will be paid. But, do you also consider what additional benefits you could offer alongside their salary?
A lot of companies now offer a range of additional employee benefits and there are many reasons why they should;
- It can increase your employer value proposition, your appeal. Why would someone want to come and work for you instead of a competitor? Benefits can give you the edge to attract the talent you need in your organisation
- Better morale – demonstrating that you care about your employees will increase their loyalty and generally keep people happier
- Increased productivity – good quality benefits give your employees more reason to be happy and loyal to your company and therefore work hard for you and deliver their best performance and highest quality work
- It can reduce your turnover rates. Investing in your employees shows that you care about them and value their contribution. In turn, this can help you build a team of happy and loyal workers who are less likely to be looking for a move elsewhere
- It could mean healthier employees. Some of the benefits that are available may encourage a healthier workforce, for example health and dental plans, sick leave, gym memberships. Healthier employees should then result in lower absence rates and increased productivity
Of course, there is a cost to offering employee benefits and companies do need to think hard about their strategy for this and review what the longer-term benefits could be in order to offset the initial investment. For example, if the above listed benefits occur as a result of you investing in some employee benefits, you could be looking at a reduction in your recruitment costs, sickness costs, time in managing poor performance and many more, so businesses really do need to consider the full picture.
Surprisingly, these days a lot of employees actually place more value on their benefits and flexible working options than they would a salary increase so it is definitely something to consider.
At 1850, we strongly believe that people should be a priority in a business because at the end of the day, you wouldn’t be able to operate without them. If you would like to discuss some options for reviewing your people strategy and maybe introducing some employee benefits, please contact us