Employees are the life-blood of any business. Companies are therefore raising the bar by putting an increased focus towards employee benefits. This tactic can help to keep staff happy, productive and morale high. It can also create an environment where employees will want to work, reducing staff turnover and in today’s competitive job market, it can help to attract top new talent.
There’s more to retaining good employees than paying a competitive salary. Providing a few fringe benefits can go a long way towards attracting and retaining high calibre people.
Here are some of the employee benefits – both monetary and non-monetary, that you may choose to offer as part of performance management.
Why offer fringe benefits?
“Fringe benefits” typically refer to non-salary perks available to your employees. These sorts of employee benefits can help to make your staff feel valued, which can boost productivity and employee engagement, and make your company more attractive to jobseekers.
Some employee benefits fall outside the scope of fringe benefits. Yet they can still have immense value for your staff, and so are worth considering as a means of attracting and rewarding employees.
Taxable fringe benefits
Common types of fringe benefits include:
- Medical and dental benefits
- Education allowances
- Housing benefits
- Retirement benefits
Fringe benefits can be a complex area, and it is worth seeking professional accounting advice to understand whether providing non-monetary benefits could impact your company’s tax obligations.
Using employee benefits to increase tenure
Attracting and retaining quality employees doesn’t have to involve offering fringe benefits. Sometimes it helps to think outside the box, and understand what each staff member really wants – what they value, what makes them feel valued, and what can set you apart from other employers.
Many of today’s professionals have a strong desire to achieve work-life balance coupled with a preference for career growth and professional development. This being the case, it can be worth focusing your employee benefits in these areas.
Providing opportunities to work remotely or other flexible work arrangements can help your team regain a balance between work and personal time. Allowing employees to work from home one or two days a week can also demonstrate a sense of trust in your staff. Other non-cash benefits that can support work-life balance include birthday leave or generous parental or study leave provisions.
Demonstrate support for career progression
Beyond this, high quality job candidates are often looking for ways in which your company can support their career. This makes it important to provide career development plans for each employee including a clear program of training and development that allow staff members to reach their full potential.
When it comes to benefits, there is no one-size-fits-all strategy. Every employee has different needs and wants. Investing time speaking with your people about what they really want in the way of employee benefits can help you fine-tune the non-monetary benefits that appeal to your employees while fitting within the company’s budget. A little creative thinking can go a long way to making your organisation stand out from others in your industry.