The last few years in the world have shown us that things have changed. In a post-pandemic reality, the worker’s relationship with work has undergone significant changes. What used to matter before is no longer weighted the same today, let alone represent the future.

This shift has made employee benefits more important than ever, bringing to the forefront some that may have been of lesser importance in the past. Thus, physical and mental health, time off, work flexibility, and career development have begun to rank higher when choosing a job.

Are companies prepared for this change and are they acting as expected? Read on to find out why this shift has occurred, what employees are seeking, why it matters, and how to ensure its success.

What Are Employee Benefits?

While salary plays a significant role in job selection, it is not the sole factor employees consider when choosing a company or position. This is where employee benefits come into play, going beyond monetary compensation and making a noticeable impact.

Certain benefits hold greater importance for employees as they aim to enhance their quality of life, foster career growth, or fulfill specific needs.

These benefits, as we mentioned earlier, serve as supplementary rewards alongside the salary. Moreover, they significantly contribute to overall well-being and act as a compelling tool for attracting and retaining talent within companies, as we will explore further ahead.

The Benefits for a Company of Having Motivated Employees

Having satisfied and motivated employees creates an atmosphere of overall well-being, which contributes to several aspects of the organization:

• Increased productivity: Being happy and content in the workplace enhances productivity. A study on happiness and work conducted by the Mexican consulting firm Crecimiento Sustentable, with a sample size of 1,500 respondents in Mexico, revealed that happiness and job satisfaction provide up to 33% more energy and dynamism, resulting in higher efficiency and productivity within organizations.
• Greater commitment and recognition towards the company: The benefits an employee receives directly impact their perception of the company and their commitment to it. This leads to their increased physical, psychological, and emotional involvement with the organization.
• Talent retention and attraction: Valuable employees are not easily let go, and companies also seek to attract new talent to contribute to their growth. Social benefits precisely aim to make employees want to stay with the organization, while also attracting new talent to become part of it

Work-Life Balance: The Importance of Social Benefits for Employees

One notable aspect of employee benefits is their aim to improve quality of life.

For instance, if a worker has flexible working hours, benefits for their family (or loved ones), and receives support from the company for their training and career development, they will feel understood, experience less stress, and be better able to achieve a balance between their work and personal life. This is a key focus for current employees, and companies must align themselves accordingly.

The Most Important Employee Benefits

There are several employee benefits that are highly appreciated by workers. Here are some of them:

• Year-end bonuses and incentives: Year-end bonuses provide employees with a financial incentive that they appreciate, as it helps alleviate expenses during certain times of the year, such as Christmas, New Year, or vacations. Bonuses, often tied to performance results, are also highly valued. According to a Sodexo study on quality of life index, the most important benefit is the bonus for achieving objectives, with a 67% approval rating.
• Health insurance and benefits: Health is becoming an increasingly important aspect of employee well-being. Therefore, offering supplementary health insurance to cover medical expenses and associated benefits is highly valued by employees.
• Flexible schedules: The ability to balance personal and work life has become a priority for many current employees, and organizations have had to respond to this demand in order to attract new employees and retain existing ones. Flexible schedules can be offered within the workplace, hybrid work arrangements, or even remote work options, for example.
• Benefits for family and/or loved ones: Benefits that extend to family members, such as discounts on vacations, leisure activities, events, etc. Special pricing arrangements, educational support for family members, language learning opportunities for children, family health insurance coverage, maternity and paternity leave, paid bereavement leave, legal services, and other support services can be examples of these benefits.
• Restaurant vouchers/cards: This benefit is highly valued as it allows employees to access a wide range of restaurants to choose from. Some vouchers/cards can even be used for food delivery services, which is ideal for those working remotely.
• Training and development incentives: This aims to support employees in their professional growth and demonstrate the company’s commitment to their career advancement. By offering subsidized external courses and training, for example, employees’ career prospects improve, leading to increased commitment to a company that supports their professional development. This, in turn, has a positive impact on their productivity.
• Transportation benefits: While the importance of this benefit has decreased with the growing adoption of remote work during the pandemic, it remains useful for those under a hybrid work model or who commute to their workplace daily.
• Mental health support: This includes specific coverage for mental health and emotional well-being, which has become even more crucial during and after the pandemic. For example, providing online psychological support for workers in need, coupled with other benefits like flexible schedules, can greatly contribute to their mental well-being.
• Childcare: This benefit involves providing employees with assistance in partially or fully paying for childcare or preschool for their young children.

How to offer an employee benefits plan to improve productivity and retain them

Implementing an employee benefits plan to enhance productivity and retain employees requires careful planning. Here are some key steps to consider:

1. Set objectives: The plan should align with the specific goals you want to achieve. For example, if the aim is to attract talent, the focus might be on competitive benefits, while if the goal is to mitigate employee stress, wellness programs could be prioritized.
2. Define the budget: It’s essential to establish a budget for social benefits to understand the resources available and set realistic expectations for the scope of the plan.
3. Identify employee needs: Understanding your employees’ needs is crucial in designing an effective benefits plan. In today’s workforce, there can be up to four different generations working together, each with diverse needs. Senior employees may value financial well-being benefits, while younger employees may prioritize services like meals or future-oriented benefits such as training and development.
4. Design the benefits plan: With the previous steps completed, you can now design the benefits plan. You can either handle it internally or enlist the services of specialized companies to assist in its implementation.
5. Develop a communication plan: It’s essential to effectively communicate the benefits plan to employees. If employees are unaware of the offerings or don’t understand their value, the plan may not have the desired impact. Internal communication plays a crucial role in ensuring the success of the benefits plan and maximizing its impact.

By following these steps, you can create and implement an employee benefits plan that enhances productivity, meets employee needs, and fosters employee retention.

Tips

It is important to have a benefits plan designed for employees, considering their well-being and happiness as a whole, and because this has a direct impact on the company, on its productivity, on talent retention, on attracting new talent, and has many other advantages associated with it. 

If you want to implement it in your company, you can contact our consultants who will help you to better manage a benefits plan that will bring advantages and good dividends to your organization.