Many businesses agree that employees are their most valuable asset. Unfortunately, not many of them realize that compensations or salaries are not enough to retain employees. Another strategy is required to keep employees satisfied, connected, productive, and retained.
Employee perks are one way to show appreciation to employees and retain them. Willis Tower Watson discovers that 78% of employees are more likely to stay in companies that offer employee benefit programs. Moreover, Employee Benefit Trends Study also finds that 69% of employees will be more loyal if companies offer more diverse perks.
Compensations or salaries are not enough to retain employees.
Let us look into employee perks and their benefits for employees!
Employee perks are non-wage offers that companies give to employees beyond the standard compensation agreement. Employee perks can be divided into some categories:
Purchasable perksPurchasable perks are perks that can be used in place of fees for products and services such as employee meals, books, fitness programs, and many more.
Program perksProgram perks are perks that can be enjoyed as part of employees’ work routine, such as remote work options, casual day, and many more.
Environmental perksEnvironmental perks are perks that can be enjoyed within the office area such as nap room, gym room, and other facilities.
Employee perks or employee benefits?
Many companies still think employee perks and employee benefits are the same thing while they are in fact different. Employee benefits are medical or healthcare benefits, dental benefits, optometry benefits, and insurance. Many companies do apply standard compensation along with these employee benefits without implementing employee perks.
What are the benefits of implementing employee perks?
Benefits of employee perks
Perks increase productivity and satisfactionEmployees long for a more productive, happier, and more balanced career. Employee perks boost their enthusiasm in working. When they are satisfied, they will be 20% more productive, which is highly beneficial to businesses.
Perks help attract and retain valuable talentEvery business wants valuable talent on their team. Attractive perks help businesses be more desirable in the eyes of excellent employees. Those already on your team will also be retained longer with satisfactory perks.
Perks increase employee engagementOne requirement you can include in your perks is participation or engagement. If you want your employees to be more proactive and contributing, perks can be the way to go! Perks build a more active culture where employees are excited to voice their thoughts and lighten up your business environment.
Perks help retention without huge costMany businesses think they need to spend much to retain employees, such as by giving raises. In fact, salary isn’t always employees’ priority. You can retain them with perks too. The convenience and helpfulness from perks help increase their quality of life and make them want to stay.
When employees are satisfied, they will be 20% more productive, which is highly beneficial to businesses.
Determining the right employee perks
Perk programs don’t get set up overnight. Before you start, consider these things.
Consider your goalWhat is your main goal in setting up an employee perks program? Is it to give more convenience and flexibility to employees? Do you want to help them expand their skills, or achieve work-life balance? Each goal calls for different types of perks, so set a clear goal before you move further.
Set a budgetEmployee perks do not have to take up huge costs. Even with a limited budget, you can still set up an efficient perks program. Don’t forget that employee retention is also much easier and less costly than churn and acquiring new ones!
Assign activities for employeesDepending on the goal of your program, you can assign activities employees should do to enjoy the benefits. You can give perks to employees after they have worked for 1 year. You can give different perks when they participate in brainstorming sessions, sharing their employee testimonials, and so on. Have a wide range of activities to keep the program interesting and engaging.
Employee perks and employee benefit ideas to satisfy employees
There are many perks you can choose for your employees. Every business has their own way of choosing the most suitable one. If you are still unsure, here are some ideas to look into.
Health and wellnessGive employee perks that boost the health and wellness of employees! You can give benefits such as gym memberships, naptime bonuses, or even fitness and yoga classes and seasonal office championships.
FamilyShow employees how much you appreciate their family time. Family-related perks are in fact attractive to senior and younger employees alike! Perks related to family can be paternity leave, maternity leave, flexible working hours or remote working from time to time. You can also give personalized hampers for new parents, or family recreation gift cards.
Employee developmentAnother beneficial employee perk is employee development opportunities. Support your employees to join mentoring programs, trainings, webinars, conferences and many more! Let your employees broaden their skills outside of their regular working hours.
As work culture keeps changing, employees are no longer only looking for compensation. They seek employee perks that enrich their quality of life and help attain work-life balance and career development. These perks may be health and wellness-related, family-related, or support them in their career development. To determine the proper employee perks, align them with your business goals and budgets, and figure out certain milestones or targets your employees need to achieve in order to gain them.
Have you given the best employee perks and employee benefits to retain them? TADA can help you create a suitable employee perks program that is convenient, diverse, and scalable to support your business! Don’t hesitate to contact us and inquire further as we’re here to help!