Every business needs benefits to keep employees happy, comply with relevant regulations and outdo competitors when attracting new talent. Knowing this is one thing, but actually setting up a successful benefits structure is quite another. To that end, here are some tips on how to create firm foundations for employee benefits.
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Set aims according to your budget
Firstly, you need to make sure that your benefits are cost-effective and ultimately affordable for your organization.
This is all about striking a balance between a desire to outdo rivals in the same space, and avoiding a scenario in which you have committed yourself to a benefits package that is financially untenable.
As such, any aims you have for your employee benefits structure must be centered around a realistic budget. Also factor in the value of recruitment and employee retention as part of your calculations; if you can spend a little more on perks and in doing so increase loyalty, this might help you justify the expense.
Simplify access to benefits
Next, be sure that your benefits package is both attractive and easy for employees to take advantage of. If team members find it tough to access their employee benefits, then dissatisfaction will follow.
Empowering HR with the right tools to manage the allocation of benefits is important in this context. For example, when it comes to wrangling time off for which workers are eligible, then providing software will mean you can organize employee leave management without spreadsheets.
The simpler the process of claiming benefits, the more meaningful they will be to employees, and the greater the value they will represent to the business.
Consider employee expectations
Another significant aspect of any organization’s employee benefits structure will be the need to look at what employees will expect to see made available to them.
This will vary depending on the industry you occupy and the roles you are able to offer. However, in essence it is sensible to keep an ear to the ground and investigate what other businesses provide so that you are not left behind.
Perhaps the most prevalent trend at the moment is for employers to give team members more flexibility in terms of where and when they work. Allowing office hours to be adjusted to fit around their personal responsibilities, and also embracing remote working where possible, will ensure that the expectations of those in the modern job market are met and exceeded.
For startups, another expectation that is common is for stock options to be offered as an incentive for prospective employees, and as a reward for those who stick around rather than seeing if the grass is greener elsewhere. This is a fairly inexpensive benefit upfront, but one which also needs to be managed carefully to ensure that it does not have a negative impact on the organization in the future.
Provide regular reminders of what the benefits are worth
Lastly, feel free to keep employees in the loop with regards to exactly how much value they are receiving as a result of the benefits structure you have put in place.
Showing that you are investing in their health and happiness on top of their standard salary with a quarterly or annual report into the state of play should demonstrate that you care about keeping them onboard, and increase loyalty as a result.
Ultimately your employee benefits package should be about both short-term perks as well as long-term advantages, such as pension contributions. These are tools you can use to enhance morale and paint a positive picture of the company culture internally and externally.