8 Types of Employee Benefits
Compensation packages that create value for companies and employees
Employee benefits are non-salary forms of compensation that form an integral part of an employee's compensation package. Implemented properly, employee benefits can create incredible value for both companies and their employees.
Companies without employee benefits are not competitive. Recruitment is more difficult because the best candidates find better offers elsewhere. Employees feel unappreciated and, as a result, are increasingly unmotivated and unproductive. Turnover increases, slowing progress and creating mounting replacement and training costs.
Employees genuinely value their benefits - which increases the value of their compensation package, reduces stress, improves wellness and helps them plan for the future.
4 "Essential" Employee Benefits
Discounts - Employee discount programs are a simple and effective way to increase your employees' purchasing power without increasing their salaries. Employees get unlimited access to free and deeply discounted items at hundreds of shops, restaurants and activities. And it's not all fun and games. The best employee discount programs feature education and wellness programs. The value to employees can be incredible: MMK 50,000 to 200,000 per month.
Insurance - Employee insurance policies give your employees' and their families peace of mind, knowing that they'll be protected and cared for in case an accident or emergency occurs. Insurance can include medical insurance (general, dental and optical), disability insurance and life insurance. Premiums can range from MMK 3,000 to 300,000 per month - so do your research and find an insurance policy that meets your employees' needs without a lot of expensive extras.
Salary Advance - Salary advance allows employees' to get paid a percentage of their earned salary before pay day. It allows employees to reduce stress, avoid late fees and stay out of debt. And salary advance has benefits for your company too - employees with financial worries are less productive, have poor relationships with their colleagues and are more likely to leave your company.
Savings & Retirement Plans - Savings and retirement places help your employees' save for an educational course, new car or home, dream holiday and comfortable retirement in their old age. But saving isn't natural for most people - which is why it's important to create systems and incentives that help your employees. Direct deposits and dedicated savings accounts are proven tools to increase savings. And a partial employer matching contribution creates a strong incentive.
4 "Bonus" Employee Benefits
Eduction & Technology Stipends - Education and technology stipends are regular payments that help employees cover the cost approved purchases - usually which are mutually beneficial to the company and the employee. Employees improve their knowledge and skills with education programs, and purchase the latest technology to use for work purposes. The stipend can be paid in cash monthly or put into a company-controlled savings account, from which the employee can only make withdrawals to be reimbursed for approved expenses.
Flexible Work Plans - Flexible work plans allow employees to work during the hours and in the locations of their choosing. Leading companies have long recognised that "butts in seats" is not an indicator of productivity. And employees appreciate the respect and confidence that flexible work plans signal. After all, an employee who is not chastised for arriving 15 minutes late is more likely to stay an additional 30 minutes to finish a task. And an employee who is permitted to work from home or a cafe may find the change of scene gives them fresh inspiration.
Profit Sharing - Profit sharing allows your employees to share in the success of your company, thus aligning incentives and increasing employee commitment. Programs range from performance bonuses to ESOPs (employee stock option plans). Performance bonuses are most effective in motivating employees to achieve short term goals - like a quarterly sales target. ESOPs drive long term commitment, allowing employees to become investors and part-owners of the company.
Snacks - Your company already provides coffee and tea, so take it a step further - and provide snacks too. Employee don't perform well when either sleepy or hungry. A regular flow of healthy snacks will provide your employees with the fuel they need throughout the day, increasing employees' moods and performance. Just be sure to stick to fresh fruits and veggies, whole grain breads and similarly healthy items - candy and chips can lead to energy crashes and unhealthy habits.
Drop us a comment below. Let us know which of the employee benefits listed above is most popular with your employees. Or share a favourite employee benefit that's not (yet) on our list.
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