A guide to Employee Benefits
Retention rates are at a low, with 65% of employees thinking that they can find a better position elsewhere. A great way to improve retention rates is through offering great employee benefits.
Benefits, including fringe benefits and flexible benefits, provide an employee an extra reason to stay within a company. In a working world where there is a greater understanding of the importance of employee wellbeing and as more employees begin to work remotely, it is vital that employers are offering the right benefits to their colleagues.
Research has shown that 8 in 10 employees agreed that the right employee benefits were a very important factor when deciding on joining a new company, so Myles Wellbeing has researched all about employee benefits to provide a guide on everything you need to know.
What are fringe benefits?
Fringe benefits are the additional benefits offered to an employee which supplement their stated salary for the service they offer. Put simply, this means benefits which you get from working, in addition to your pay, that is not in the form of money. This can include free health insurance or a company car.
What are flexible benefits?
Flexible benefits are similar as they are benefits in addition to your pay, however, the employee has the choice to pick which benefits suit them best. These benefits can include extra holiday, life insurance and childcare to name a few.
Why are employee benefits important?
Research has shown that 88% of employees said their benefits aided their sense of wellbeing. With such a big push on employee wellbeing, offering benefits is a great way to ensure that your company is looking after the welfare of its workers, making them more likely to stay with your company.
At Myles Wellbeing, we got in touch with our CEO and Co-founder Toby Cannon to offer any advice from an employer point of view, with regards to employee benefits. He said: “Employee benefits are only valuable when these benefits are actually used. Look at which of your benefits are being used as well as what people are asking for to work out which to prioritise”.
Following on from Toby’s advice, Myles Wellbeing researched five employee benefits which workers value. Try and implement some of these benefits to see the wellbeing of your colleagues improve within your company.
1. Physical and mental wellbeing support
Research has shown that 91% of Gen Z think companies should have mental health benefits. These can include support systems which cater to workers who may need time off or extended deadlines if they are having a bad mental health day.
As long as your company is open and comfortable to speak about the importance of mental health, employees, and especially younger employees, may feel more compelled to remain in their current role.
Physical wellbeing benefits which encourage employees to be healthier are also essential. For example, Myles Wellbeing’s own app provides employees with the motivation to keep up their physical activity by rewarding its users. Having an improved level of physical wellbeing ultimately leads to improved mental wellbeing for employees because of all the benefits and good hormones released when you exercise. We’ve all heard the old adage “Healthy body, healthy mind”.
2. Flexible working
In a post pandemic era, flexible working, including working from home or four day working weeks, is becoming more popular. For example, 36% of working adults are now working from home at least once a week.
Flexible working allows employees to achieve a better work-life balance, as they can fit their work around their life commitments rather than letting their work take over their lives.
3. Healthcare benefits
We spoke to Marcus Axelson, Head of Sales at Myles Wellbeing, about which benefit is the most important to him as an employee. He put Health and Medical insurance at the top of his list, explaining: “With the current strain on the NHS, an employer who offers medical insurance as an employee benefit is very appealing”.
Marcus is not alone with research showing that Health insurance is the most commonly offered benefit at 58%.
4. Holidays and time off
Being flexible is a benefit that many employees value. Having schemes which allow employees to have increased holidays or additional days off encourages employees to achieve a better work-life balance.
Schemes where you can buy extra holiday from your company are also proving popular as many employees recognise that their contracted holiday arrangements aren’t enough.
5. Other benefits
Other benefits, including big things such as company cars to smaller things such as work parties, are all great bonuses which employees find appealing.
If you are a remote worker, benefits such as quarterly team events outside of the office are especially desirable to break up their usual routine and get them out of the house. Many employees and employers alike often report that events like these really help to improve overall camaraderie and team spirit, so it’s worth implementing such a benefit!