How employee perks can help your company win?
Gone are the days when only hefty salary packages attracted potential talent to your company. Today, the concept of employee compensation has changed as employees prefer perks to be an essential part of the job.
According to a Zenefits survey, 68% of respondents felt that employee perks are vital as insurance coverage and other benefits. Another report by AICPA revealed that 80% of employees preferred a job with additional benefits rather than one with higher pay and no benefits.
One thing is clear: employee perks are essential for the modern-day workplace. Eventually, they can help your company grow. Here’s how:
- Increased morale
Perks and benefits help in boosting employee morale and enhancing workplace culture. As the organization rewards and recognizes its employees’ efforts, their job satisfaction is more pronounced. This motivates employees and keeps them happy, which directly impacts workplace morale and culture.
- Increased productivity
A happy employee is a happy worker. The job satisfaction that employee perks bring makes employees more productive. They make better efforts to achieve their goals and targets. Perks that ensure employees are mentally, physically, and financially happy in their jobs bolster productivity.
- Lower attrition
Why would employees leave their jobs if their employers offered them additional perks with their salaries? Satisfied employees are less likely to switch employers. This reduces the attrition cost of your organization and also fosters employee loyalty.
According to LinkedIn’s Global Talent Trends 2020 Report, companies rated high on employee compensation and benefits showed 56% lower attrition rates than others.
- Better profitability
Ultimately, numbers drive organizations. As such, knowing the effect of employee perks on your company’s profitability is an important consideration. Thanks to better productivity and lower attrition, the profitability of your company is directly impacted — positively.
Along with proper communication, perks drive employee engagement. This, in turn, boosts profitability: companies with engaged teams reportedly show 21% more profitability.
Thus, a little investment in employee perks can boost your company’s profitability manifold as enhanced productivity and engagement and reduced costs, together, boost revenue figures.
Employee perks also help attract top talent, especially Gen Z that looks beyond the conventional pay package offered by the employers.
With increased social consciousness, Gen Z also looks at diversity and inclusion in the workplace as a plus-point. Examining your current company culture, actively hiring people from diverse backgrounds, and ensuring their comfort builds an inclusive, culturally sound workplace.
This means looking beyond skills and experience and recruiting how well the candidate can fit into and enrich your workplace culture. It conveys your commitment to encouraging diverse, lesser-heard points of view proactively. Here, the guaranteed cultural contribution becomes a valuable perk for Gen Z.
All these points demonstrate why organizations should invest in employee benefits and programs. Some widespread benefits that work as perks are:
- Health insurance (including dental and vision)
- Life insurance
- Paid leaves
- Sick leaves
- Maternity and paternity leaves
- Retirement contribution programs, like EPF
- Performance-based incentives
- Profit-sharing
- Flexible working hours and time-off provisions
- Recreational activities
- Contribution for a student or tuition loan
- Skill development programs
The bottom line:
In today’s competitive environment, it is challenging for organizations to recruit and retain talented employees with high and nuanced expectations. Considerate employee perks can help organizations get an edge over their competitors in attracting talent. After all, employees are directly responsible for an organization’s success story. To boost your company’s profitability, start by investing in your employees.
The results would not disappoint you!
