The Importance of Employee Benefits: Modern Employer's Guide
What Are Employee Benefits?
Pretty self-explanatory, right? Any benefits given to your employees by the employers are employee benefits!
In other words, giving benefits to employees, keeping in mind the overall wellbeing of your employees, and to ensure employee satisfaction, going above and beyond financial employee compensation, is considered employee benefits.
The importance of health benefits to employees is not just one; they improve employee engagement, and productivity, and promote the growth of your company. They also set you apart from your competitors in the market, and attract and help retain talented recruits.
Click here to find out why employees should participate in wellness programs.
The Importance Of Employee Benefits And Services
Do you think that employee benefits are only helpful to employees? You would be glad to hear that giving your employees perks and benefits is beneficial not only for them but for you and your company, too!
Employees who are covered financially and medically, tend to be more secure, engaged, and committed to their work. Thus, the importance of employee benefits is bifold!
Let us look into the importance of compensation and benefits to employees.
1. Job Satisfaction:
Perks and benefits add that extra x-factor that increases your employees’ job satisfaction and improves employee health, and keep them more engaged.
2. Company Culture:
The kinds of benefits your employees receive say a lot about your company, and the environment and culture it celebrates.
Offering benefits establishes a culture of welfare and wellbeing, which can tell the employees of your company that you care about them and are ready to invest in their futures, thus creating a workplace culture of consideration and thoughtful concern.
3. Improved Teamwork:
In cases of benefits such as wellness programs, which include team activities like group meditation, yoga, or Zumba, an increased improvement in team spirit can be seen amongst your employees, which helps in the holistic functioning of your company.
4. Work-Life Balance:
Employee benefits help your employees to maintain a proper work-life balance.
When you offer them leaves - sick leaves, parental leaves, and more - it allows your employees to not have to attend work while sick, or right after they have a child, and focus on themselves and their families, and then return to work with a greater concentration. This keeps employees happy, more productive, and focused.
Want to know more about why health and wellness is important for employees? Click here to find out!
What Is The Importance Of Benefits On Employee Retention?
Employee retention literally means to retain the pre-existing employees of your company. Offering employee benefits is a great employee retention strategy for your employees, you motivate them to choose your worksite over others, and stay in your company, helping your company stand out from the rest of the competition.
1. Reduced employee turnover:
A high employee turnover is harmful to the trajectory of growth and does not reflect a healthy work culture. Thus, offering employee benefits to increase employee engagement can reduce the employee turnover rate, ensuring that fewer and fewer employees leave your company.
2. Experienced employees:
Employee retention can help employees - who have stayed in your company for quite some time - to continue working there.
3. Better teamwork:
Working with a steady team over a long period of time is essential since it contributes to the betterment of your company, and promotes team spirit among your team members.
With higher employee retention, your company can encourage more quality employees to stay in your company and take charge of its growth further on.
4. Saves cost and time:
Retaining old employees and reducing employee turnover can cut the cost of hiring and onboarding, which can be quite a hasslesome and pretty expensive, not to mention time-consuming.
Employee retention saves a lot of time and money, as well as effort, on the part of HR in the process of hiring, shortlisting, and onboarding.
Check out how Livio's HR Saves 99% of Time on Employee Benefits With Loop!
5. Boosts morale:
No one likes to work under the constant fear of getting fired! Employee retention gives the employees of your company the mental peace and security of retaining their jobs, thus increasing their engagement and productivity.
What Employee Benefits Do Employees Want Most?
Are you confused about which benefits to choose, from a pool of hundreds of benefits offered to employees? It is very easy to get overwhelmed among hundreds of options, so here are the top few employee benefits favorites!
1. Comprehensive Health Insurance:
Financial security for future medical expenses is one of the biggest benefits you can offer to your employees.
With comprehensive health insurance, the medical expenses of your employees such as pre and post-hospitalization, medical consultations, in-patient care, hospital stays, and more are covered.
This is especially relevant now since, in post-pandemic India, group health insurance is mandatory for all employers.
2. Wellness programs:
Wellness programs can include a plethora of things: from the on-site gym to mental health consults. Wellness programs boost team spirit, encourage healthy habits, contribute to the complete and holistic well-being of your employees, and result in increased productivity.
Programs like Yoga, Zumba, and Pilates not only help keep your body fit and healthy but also keep your mind energetic and stress-free.
- Paid Leaves:
Your employees might need to take leaves on different accounts, whenever they find themselves unable to show up to work. One very advantageous employee benefit, thus, is paid leaves.
Paid leaves can cover sick leaves, period leaves, maternity-paternity leaves, mental health support leaves, and more. This will prevent an unfit employee from showing up to work and infecting others; healthy employees are also seen to be more productive and engaged.
- Employee discounts:
Offering a discount on the products or services your company provides, for your employees, is a great way to acknowledge and appreciate their efforts. You can also offer gym membership to your employees unless you have an on-site gym.
- Training programs:
There is no better way to make work a learning opportunity than by introducing training programs for your employees. Training programs are a win-win situation for both the employer and the employee; your employees can develop newer skills and keep themselves updated, and you and your company can enjoy the welfare of those newfound skills.
Top 5 Advantages Of Offering Employee Benefits
Offering employee benefits come with a number of advantages for both you and your employees. Here are 5 advantages of offering these benefits and perks to your employees.
1. Cutting down on healthcare expenses:
Investing in wellness programs now, as part of employee benefits, can ultimately help your company to cut down on time, paperwork, and money on long-term healthcare expenses.
Wellness programs play an important role in preventing long-term or chronic diseases, especially in the cases of lifestyle diseases such as diabetes, obesity, etc, and thus help save a lot of money on healthcare expenses in the long run.
2. Medical and financial security:
Your employees can perform significantly better if they are not weighed down by the stress and tension about their future healthcare expenses.
By offering them extensive healthcare coverage, you are showing your employees that you are willing to invest in their well-being and futures.
3. Increased engagement and productivity:
An employee is said to be more engaged and involved in their work if they feel that their well-being is taken care of.
They feel a greater sense of commitment toward work, which boosts their productivity, and ultimately benefits the company.
4. Standing out from the competition:
In this highly competitive market, it is important to set your company apart from the competition.
Most work-seekers nowadays look for more than just their salary package; in other words, benefits play an important role in the employee’s decision to choose a particular company over another.
5. Employee Retention:
Employees have a higher motivation to stay back in your company if they are offered employee benefits and perks.
With better benefits, you can offer higher levels of job satisfaction to your employees, and thus make them stay longer in your company, helping you to retain better, more talented employees in your company.
With Loop, You Can Now Offer Amazing Benefits To Your Employees!
The long-term advantages of providing employee benefits greatly outweigh the initial cost it requires. Benefits help your employees maintain a healthy work-life balance, allowing them to reach their expected level of job satisfaction.
Download this guide to explore the latest trends in giving your employees the benefits they deserve.
As an employer, offering benefits to your employees shows that you are willing to invest in the future of your employees, which lets your employees be more committed to their work, more engaged, and more productive.
It's just as crucial to cater to wellbeing in the form of health benefits as it is to cater to group health insurance.
Here at Loop, we are dedicated to assisting employers and employees in creating a healthy work environment. We help you and your company in taking small steps toward a brighter future, by encouraging your employees to improve their job outcomes and by assisting employers in lowering healthcare expenditures - it's a win-win situation!
Along with our comprehensive health insurance, you get added benefits like 24X7 claims support, a dedicated in-house medical team, an HR dashboard, and engaging wellness activities.