If you’re building a start-up, chances are you are winging your company policies. Your to-do list is probably overflowing that you’ve decided to stop jotting down your tasks. You think there's still time to decide company policies and employee benefits. We get it, and it's okay since you’re trying to establish a solid foundation. At best, this will run for some time.
But, you'll soon realise that as you grow, you’ll need anchors in your team to lead you in the right direction. This is when your ad-hoc system is no longer workable.
The cornerstone of any company is a system that works best for their employees. Company policy might give you the basic skeletal framework. But, employee benefits are more sought after. So, if you plan on providing excellent employee benefits to your team, you’ve come to the right place.
In this post, we look at the different types of employee benefits. We discuss what it costs to offer them and tips for managing employee benefits.
What are employee benefits?
Employee benefits are perks given to employees apart from their salaries. These could be tangible or intangible. Health insurance, retirement benefits, vacation days and ESOPs are some common employee benefits.
Providing employee perks is an essential morale and retention strategy. Don’t believe us? Take a moment to think about companies with lucrative benefits. If your mind flashed a few names, it's a sign that people talk about employee benefits and work culture. It symbolises a people-first culture. Additionally, it shows how much you prioritise your employees’ well-being and work-life balance.
Types of employee benefits
There are many kinds of employee perks you can offer to your team. However, we’ve compiled a list of four common perks organisations across industries offer. These are as follows:
Group health insurance
Group health insurance is a great benefit to offer your teammates. It helps attract and retain top talent. Most importantly, comprehensive group health insurance promotes a culture of care. It enables employees to check in with themselves proactively. Moreover, it also reassures them in the event of a medical emergency.
Paid time off
We all have spells at work where we don’t feel our best. Or, we have days where we need more rest than usual. For all these problems, paid time off is a great solution. It encourages employees to take breaks from work without feeling guilty. As an employer, you reaffirm that rest is productive, too.
Evidently, healthy and well-rested employees are more focused and engaged. This bodes well for organisations as well. There are other organisational leave policies you can offer apart from PTO. These can be parental leave, wellness leave, bereavement leave, menstrual leave and more.
Clearer policies eliminate ambiguity and guide team members better.
Training and development
LinkedIn’s 2018 Workforce Learning Report revealed one key statistic. 93% of employees would stay longer at a company if it invested in their career development. Some companies do this is by investing in L&D programmes. Other organisations provide an annual learning budget. Undoubtedly, employees can use this budget for a program, conference, books or other valuable learning experiences.
Employee Stock Options
Employee Stock Options or ESOPs enable employees to own shares of their company. Employers divide a percentage of the firm's stocks with the employees. This comes at no cost to employees and is a great perk as it promotes a feeling of ownership. Employees feel like they belong as it gives them a stake in the organisation’s growth trajectory.
Cost of employee benefits
Providing employees with benefits is an integral part of healthy employee retention. In today's time, you can offer any number of benefits to your team. So, start with a complete research and find perks that align with your organisation’s values.
Costs can vary depending on the types of benefits you choose. However, employee benefits are usually affordable in the long run. You can also introduce cost-effective benefits if budget is a constraint. These are perks like remote work, free lunch, company-sponsored memberships and more.
It's essential to provide employees with information about their benefits. This helps them use the perks you've designed to their best advantage. In addition, you help them stay loyal and secure in their job.
Tips to manage employee benefits effectively
Your employees benefit the most from your perks. Ask them what benefits they value the most. Use their feedback to align their needs with organisational culture. This helps you understand how you can enable a healthy and positive work culture. It allows you to listen and make adjustments wherever needed.
Benefits > Costs
It’s important to track if costs match the benefits expectations. This helps you analyse if certain perks are not as effective as expected. Ultimately, it becomes a key data point that helps make changes wherever needed.
As the organisation grows, you will come up with new benefits that cater to your employees’ needs. But these perks remain ineffective if your employees are unaware of how to use them. For this reason, an employee handbook is convenient.
An employee handbook can become your team's bible for all things company policy and perks.
Employee benefits can save the day
Employee benefits are a critical part of any business. By understanding the costs and advantages of employee benefits, you can provide the best to your employees. The right benefits can take your team and company to new heights!