Employee benefits refer to the kinds of advantages and facilities that employers provide to the staff merely beyond their monthly pay. Such benefits generally include group health insurance, dental/life insurance, retirement benefits, loans for housing, vehicle, and education apart from sick leaves, vacations, flexible working hours, etc. While talking on this subject, in a press conference Charles Spinelli says that – for the growth of any establishment, their workforce is just a priceless resource.
Therefore, they need to make their pool of employees satisfied and motivated with the necessary benefits, a healthy and safe work environment, and facilities that let them perform optimally for the benefit of the company. According to him, in this intensely competitive era, having productive employees is a must-have to get a completive advantage.
Why is Providing Employee Benefits Important?
Offering competitive benefits and perks to employees can benefit a company in the following ways:
Drags and Retains Talent
Providing competitive advantages helps employers to drag and retain top talents in different sectors. In the global marketplace today, this is vital since qualified talents have a plethora of options to skip.
Boosts Employee Morale
Employees are more potential to be gratified and devoted at work as they feel cared for and valued by the management. Offering perks such as retirement benefits, paid time off, and health insurance will boost their loyalty and morale which translates into productivity.
Fulfils Legal Requirements
Federal law has mandated the provision of several employee benefits, such as workers’ compensation, family and medical leave act (FMLA) protections, unemployment insurance, etc. Violation of these mandatory employee benefits or failing to provide the same will lead to legal consequences while destroying the business’s reputation. Under such circumstances, it would be more than challenging for employees to fetch and retain talents
Happy, energized, and loyal employees mean a productive work environment, better coordination, and greater collaboration that increase the productivity of the company.
Types of Benefits for Employees
According to Charles Spinelli, depending on the volume of business, and size of the company, the area of specialization, and its budget, some very common types of benefits for employees can be provided include
- Health insurance: Among the most vital benefits that an employee can provide is group insurance. Since medical expenses are ever-rising, covering their employees and their dependents with health insurance involving medical, vision, and dental insurance can be very helpful for them.
- Life insurance: The benefit offers mental peace among employees considering the financial security of their family in the event of an employee’s death.
- Retirement plans: There is a wide range of retirement plans, such as IRA, 401(k), and pension plans. Employers can consider any one of them to provide added benefits to their employees and help them make their retirement life financially secure.
- Flexible working system: Many medium to corporate companies these days offer flexible working arrangements which is a great way to keep a work-life balance. This includes flexible working schedules, a combination of work from the office and work from home, early leave twice a month, remote working advantage for quality candidates living in distant places ( maybe beyond the state or even country)
- Paid time off: PTO may involve sick live, or vacation that enables employees to get paid even after taking time off from the workplace. A great benefit for employees is to take a break.
- Disability insurance: Disability insurance helps replace income in the event an employee becomes incapable to work due to illness or injury.
- Wellness programs: The benefit may come in the form of on-site fitness classes, health coaching, gym memberships, etc. The program not only encourages healthy habits but helps manage stress, stay energized, and also lessen their costs.
Apart from this, companies can provide childcare benefits, car loans, home loans or education loans, etc. and thereby maximize their ROI toward providing these benefits.