Employee benefits are not only profitable for employees but also for the employer. So, as an employer, if you are seeking the best way to offer compensations to the employee, but many thoughts come across your mind, such as:
- What are employee benefits?
- What are the types of employee benefits?
- Why are employee benefits important?
- What are the best employee benefits?
Then, don't skip this blog 20 Different Types of Employee Benefits and know A to Z about employee benefits quickly.
What are Employee Benefits?
People often ask- the meaning of employee benefits, employee benefits definition or what are the employee benefits?
Employee benefits are also known as perks or fringe benefits. This is the extra pay given to the employees over the monthly salaries and wages. Some examples of employee benefits are health insurance, stock options and medical insurance; these are some basic benefits offered to employees.
Some of the employee benefits are country-specific. For instance, life insurance is one of the key components of employee benefits.
Why Employee Benefits are Important?
The core of every company and every business are its employees. Without their hard work, dedication, and ideas, organizations would hardly stay afloat, especially in the COVID-19 era. Their performance and motivation keep the business going and ensure goals accomplishment.
Yet, many leaders and CEOs aren't aware of how important employee satisfaction is for their objectives and corporate priorities. If a hire is unmotivated and unhappy, that will affect their productivity and engagement. Further, that results in average results, loss of revenues, and turnover.
Employee retention and happiness significance double during the tumultuous times that require maximum effort and reaching full potential. Those times are the ones we are going through now as we navigate through the aftermaths and restrictions of an on-going pandemic.
With remote work and uncertainties, employees might feel emotional distress and isolation. If they haven't been happy at their workplace before the coronavirus hit, their dissatisfaction may double now.
But there is a safe method to boost retention and help your employees feel cared for, validated, and satisfied. Employee benefits are the perks every company provides to their staff that makes their work and life seamless.
Hence, it's not surprising that 69 per cent of employees say that "having a wider array of benefits would increase loyalty to their employer." Thus, Glassdoor's Employment Confidence study shows that for 60 per cent of job seekers, benefits are an essential factor when deciding whether to accept a job offer.
What are the Major Types of Employee Benefits?
Employee benefits provided under its type. There are majorly four types of employee benefits offered by the companies, and that given below:
But, presently, the list of employee benefits is continuously expanding. In the below content, we have added different examples to provide extra benefits to the employees.
20 Different Types of Employee Benefits List for 2021
Different generation's employees demand different types of benefits. Or we can say that different people want different things.
Thus, employers need to focus on a variety of benefits for employees in order to supply correct appreciation to each employee. Hence, we brought a huge list of employee benefits to simplify your work and eliminate the confusion of providing accurate benefits.
Employee Benefit #1. Rewards and discounts
Employees, especially millennials and Generation Z, love perks that give a sense of a particular lifestyle. Indeed, 80 per cent of workers prefer those kinds of benefits over a pay raise. During the pandemic, it is even more significant to have perks that allow employees digital access via online catalogues.
Employee Benefit #2. Affordable healthcare
Health matters, and today, human well-being is a hot topic, which is why you should offer a generous health insurance plan and reduced prescription drug costs for your employees. This benefit becomes one of the crucial employee benefits after the outbreak of COVID-19.
Employee Benefit #3. Student loan repayment plan
Another benefit that we added to the list of employee benefits list is the student loan. Student loans are one of the worst pains of every young adult trying to build an independent life. If you decide to set up a student loan repayment program, you will make a big difference in the worker's life and help them have a clean slate.
Employee Benefit #4. Care gifts
Everyone loves personalized presents that show genuine care and recognition that goes beyond standard perks. In an era of remote work and social distancing, such gifts will encourage a sense of connection and belonging. Therefore, consider care gifts made of healthy snacks, natural cosmetics, and environment-friendly products.
Employee Benefit #5. In-house professional growth and development
Most people dream of starting from low positions and later climbing the ladders due to their exceptional skills and hard work. Offer training programs that can make that dream a reality and nurture in-house employee development that can also save you from hiring costs and additional onboarding training.
Employee Benefit #6. Free (E)books
Since the early days of the pandemic, many people have found comfort in reading and escaping from an uncertain reality to a fantasy realm. Whether your employees are avid readers or you want to entice their reading skills and knowledge, collaborate with bookstores to allow free book delivery and e-books downloads.
Employee Benefit #7. Appreciation programs
Employees need to feel that their work is cherished and recognized more than ever. The virtual setting can make them feel disconnected and unimportant. Offer a virtual appreciation program to express gratitude and value your team members.
Employee Benefit #8. Team gatherings
Employee benefits can be achieved by gathering all. Although complying with the social distancing measures is preventing us from close human contact and interactions, you can still ensure that employees get together by organizing online team buildings, coffee time, and entertaining ice-breakers.
Employee Benefit #9. Equipment support
No matter the job description, remote work may require amenities that not every employee has. Show your understanding and care by providing all your staff with the necessary free equipment and delivery. Thus, consider reimbursing their connectivity charges to alleviate their finances.
Employee Benefit #10. Learning opportunities
Having to spend most of the time at home where their private and work life collides can be tiring and depressing for the employees. Introduce joy and novelty into their lives by providing them with free online courses and workshops on a topic of their choice.
Employee Benefit #11. Wellness benefits
As stated earlier, well-being and wellness are this year's top priorities, and your employee benefits shouldn't overlook that fact. Ensure that your workers can lead healthy lifestyles by creating an online hire wellness platform that assigns various health challenges and tasks to the users to boost their physical activity. Thus, you can gift them with yoga and massage coupons once the situation allows.
Employee Benefit #12. Gym membership
Although going to the gym might not go well with the current restrictive measures, consider early New Year gifts that will ensure your employees have a free gym membership in new year.
Employee Benefit #13. Childcare and family members benefits
No matter how much they love their work, family and kids are probably on top of the list of your staff. Show that you care too and extend the perks to their family members by allowing additional free days for spending time with them or paying for online classes for the kids.
Employee Benefit #14. Entertainment subscriptions
No, it is not silly to gift your employees with free access to Netflix or Amazon. It is not enough to only cover the health and learning perks; make sure that your staff can have fun too through a monthly subscription to entertainment platforms.
Employee Benefit #15. Home services
Work-life balance is endangered as remote work interferes with private time. Make it easier for them by providing them with free services, such as grocery delivery, cleaning, or laundry.
Employee Benefit #16. Paid sick days
Employees often fear getting sick because they might lose work, or their boss might perceive them as weak or avoidant. That fear is especially present with a widespread virus. Hence, implement paid sick days that also covers mental distress.
Employee Benefit #17. Retirement plan
Many employees, especially the young ones, fear the future due to uncertain pensions and finances. By introducing precise and transparent retirement plans, you will help them have peace of mind and plan their future with more ease.
Employee Benefit #18. Flexible schedules
Telework can be confusing as it is hard to draw a clear line between playtime and work time. Hires might feel guilty if they are not working all the time. Consider allowing employees to choose their schedules and tailor them to their personal lives, which can boost productivity.
Employee Benefit #19. Tuition help plan
Many hard-working young professionals work and study at the same time. Applaud their ambition and goals by introducing tuition reimbursement.
Employee Benefit #20. Pet insurance
Furry friends are not only pets anymore; in modern society, they are family members. But they can be quite expensive. Support the animal lovers in your team by offering pet insurance and gifts.
Final Thought about Employee Benefits
And these are the 20 Different Types of Employee Benefits Examples that every HR practitioner should know. Extra benefits for employees over the salaries will attract the top talent and emphases them to stay with the company for a long time.
Choose the best employee benefits for your employees that will encourage them to be productive and fruitful.