12/10/2020

What Are The Best Benefits For Employees?

With margins under pressure, employee benefits may not be the first order of business in many boardrooms. However for every business which says ‘our biggest asset is our people’, now is not the time to be alienating your staff. Employee benefits are those benefits in addition to financial compensation.

In a Harvard Business Review article, the second most ‘highly influential’ factor on the choice of a position was the ability to work from home. This was a few years ago. Recently we have seen enforced work from home protocols. However, if staff are able to work efficiently, perhaps this should be allowed to continue after the pandemic has passed? This would not cost the company anything and would benefit the employee. Other factors which were highly prized were flexible hours and more holiday time. These three benefits were classed as being important or fairly important by 80% or more of respondents.

Most Influential Employee Benefit

Employee Benefits

The most ‘highly influential’ factor in a person’s choice of job was the healthcare benefits. Not just basic medical cover but dental and vision cover for glasses etc. Whilst the first idea does not cost the company money, adding these benefits to an existing medical insurance policy would have an impact. Why do these benefits stand out? It is because these are the benefits which staff see themselves as most likely to use. The downside to this is that the insurance companies know this and so charge the company based on this knowledge.

Recruitment or Retention

When the pandemic is over, I predict there will be a very high demand for good quality employees in many sectors. These employees may be working for you right now, in which case the objective is retention. Or they may be working for a competitor, in which case the objective is recruitment.

I am not suggesting that employee benefits are the only thing a person considers. However, the culture of the business is often shown in many different aspects. The quality and breadth of employee benefits is one of those aspects. It shows employees and prospective employees whether the company backs up the claim that ‘our people are our most important asset’ by providing them with the benefits they are looking for.

What Are The Best Employee Benefits?

After financial compensation, the security of a good quality health care plan is the most important aspect a prospective employee considers. This reflects the type of culture within the firm. At one end of the spectrum nurturing and interested in developing the skills of their employees and at the other doing the bare minimum to comply with regulatory requirements. Which type of business would you want to work for?

If you have any questions, book a call with me by clicking this link, or complete our contact me form; or call 050 594 5217 for a free, no-obligation review of the options.

ABOUT STUART

Stuart Porter - Expat Financial Advisor UAE
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