4 Things to understand about your Employee Benefits
Employee benefits include every extra coin that a worker earns beyond the normal salary. Some of the most common benefits include paid leave, medical allowance, travel allowance, risk allowance and insurance allowance among others. In fact, some employees focus more on these benefits than what they get as regular salary. Majority of the benefits are not compulsory. However, employers prefer to give them because they guarantee a win-win situation for them and their employees. The problem is that some employers think that giving such allowances amounts to wastage of money. This article will shed more light on the benefits of employee benefits.
1. Improves your Company’s Appeal
Research shows that most seasoned employees prefer to work for companies that offer the most attractive incentives. In fact, such companies receive thousands of applications in a year from college and university graduates. This is because every employee wants to work in a company that appreciates the efforts he makes. Such companies are therefore able to attract the best talent that’s available in the market. In the long run, a company that gives its employees the incentives that they deserve becomes more competitive than its rivals, which in return results in increased market share. On the other hand, companies that are reluctant in offering employee benefits are usually ignored by experienced professionals simply because they don’t offer an opportunity for career advancement. As a matter of fact, such companies only attract the professionals that are still learning the ropes.
2. Boosts Employee Productivity
This one goes without saying. Employees tend to be less productive when they are constantly thinking about their welfare. For instance, when an employee has a sick spouse or child and the company doesn’t help in paying for the medical expenses, the employee will obviously have sleepless nights while trying to look for money that’s needed for offsetting huge medical bills. But when the employer is involved on matters such a matter, the employee will be able to concentrate on what he was hired to do without being stressed by the looming problem. As a matter of fact, some of the most successful businesses have a dedicated Benefit Administration Company that’s contracted specifically for dealing with employee incentives.
3. Improves Employee Morale and Prevents Mass Exit
When the interests of employees are well handled, the workers feel motivated to work harder. Such employees don’t need to be followed around to perform their duties. This is because the benefits they get make them feel like they own a fraction of the company or in other words, share holders. They therefore do their best to satisfy the needs of their employer. In fact, such employees align their goals with those of the company because they understand that their success is pegged on the performance of the company they work for. Besides that, the employees are not tempted to look for a job in another company. This helps in long term talent retention. The advantage of retaining employees for the long haul is that they are the ones who groom those who will replace them after they retire. On the other hand, any company that keeps on hiring new employees due to job dissatisfaction can hardly experience consistent growth.
4. Promotes Honesty
According to research that was carried out recently, employees who don’t receive allowances are more likely to steal from the company than those that get the extra perks. Those who are on the losing end usually feel sidelined by their employer because they don’t get a portion of the lion’s share. Such employees will therefore use dishonest ways to get money. They are the culprits who usually misuse company resources and engage in blue collar offenses.
Most culprits argue that they engage in such malpractices because they are not certain about their future. They actually feel like they will not have something to show for all the years they worked for their employer. Those who get the appropriate incentives on the other hand feel obliged to protect the resources of the company from misuse. Such satisfied employees are usually the ones that communicate with their both when something is not right.