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What Are Some Of The Most-desired Workplace Benefits?

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Employee benefits are important for attracting and retaining employees. Offering competitive benefits may seem like a delicate task between keeping employees satisfied and managing expenses. For small-sized businesses, offering benefits can be a challenge.

However, despite the costs the benefits offered by employees are vital. According to Aflac, 49 percent of employees will search for another job within 12 months after starting if they aren’t satisfied with your benefits.

In addition, as people leave jobs in record numbers thanks to the Great Resignation, providing competitive benefits is more important than ever before.

In this economic downturn providing benefits is crucial to attract and retain talent, especially for small companies. It is important to keep in mind that an investment to your workforce is an investment in your company, with substantial returns on employee retention productivity, morale, and productivity.

Starting with perks, to the importance of providing health benefits to employees, let’s look at the reasons why providing employee benefits is essential for small businesses.

Five advantages of offering employee benefits

Let’s examine the five primary benefits of offering employee benefits.

1. Find and keep key employees

In the current workforce, employees appreciate and expect employers to provide good benefits. The results of Glassdoor’s Employment Confidence Survey show that 4 out of 5 employees would prefer to have added or enhanced benefits rather than a pay rise.

This can give small employers an opportunity to compete against larger organizations that have the money to pay more. Even if you can’t afford to pay a large pay check, offering a competitive benefits package can bring top candidates to apply and can help retain those who are long-term.

2. A healthy workforce is a productive workforce

Employee benefits can provide your workforce with the tools to be productive and healthy that can create an ideal win-win for your company and employees. Wellness options can include health benefits and other health benefits, like gym memberships or mental health services.

In particular, giving access to high-quality healthcare and employee wellness programs–and contributing to the cost–removes a financial hurdle for families and employees. On the other hand providing health and wellness services can help reduce the number of absenteeism and sick days. This will be a significant return on your investment in your employees.

3. Morale and culture

As a small organization, it’s common to have intimate working relationships with employees. In terms of morale and culture employees experience this feeling of gratitude. Knowing that their employer cares about their health and well-being creates employee loyalty and retention.

In a poll conducted by the Science of Care, 60 percent of employees who said they were being cared for by their employers also indicated they planned to stay in their workplaces for three or more consecutive years in comparison to 7 percent of workers who felt they were not cared for at work.

Furthermore, providing employee benefits like remote work can further boost employee morale. As per an Owl Labs survey, 22 percent more employees said they’re happy with their remote job than employees who don’t work remotely.

4. Tax advantages

A lot of employee benefits are tax-deductible for both your organization and your employees, and not only the ones you’d typically think of, such as contributions to healthcare or retirement plans.

A variety of other employee benefits are tax-free, such as:

Healthcare reimbursement
Life insurance
Tuition reimbursement
Child care reimbursement
Cafeteria plans
Employee discounts
Personal use of a company-owned vehicle
Cell phones that are provided by companies
Lunches are provided by the workplace

5. A solid foundation for growth

A final advantage of employee benefits is that they establish your company’s foundation to expand and grow. When you add many more people, having a a distinct and attractive employee benefits plan can help you attract, recruit, and keep the best employees.

According to studies done by LinkedIn, organizations rated highly on benefits and compensation by their employees had 56% less attrition than organizations that were not rated highly.

What are the most important benefits to employees?

Making the right choice of benefits for your employees is crucial to the effectiveness of your benefits package. If you’re deciding on which benefits you can offer your employees, conducting a survey of benefits for employees is an excellent place to begin. Ask your employees what they’d like to see included in the benefits package. When you need employee benefits solutions, get in touch with our team.

However, there are some benefits that employees want more than others. According to an Gallup poll, well-being is the top workplace want among young employees. This includes wellness and health benefits and flexible work hours.

The most desired workplace benefits are:

Healthcare benefits
Wellness programs
Remote job possibilities
Flexible work hours
Unlimited paid time off as well as sick leave
Parental leave
Retirement benefits
Career development
Tuition reimbursement
Disability insurance

Let’s take a look at ways you can give a few of these top benefits as we go through the section below.

How do you provide employee health benefits while on a tight budget

As per the Society for Human Resource Management, 90% of employers consider healthcare to be the most important benefit offered to employees. While the value of healthcare benefits for employees is not overstated but it’s a struggle for many small businesses to find a plan that is affordable.

The prices of traditional group health insurance policies are usually too costly for small companies, and rising healthcare costs have led to group health policies becoming more difficult for companies to manage.

Healthcare reimbursement plans (HRAs) are an excellent alternative to health benefits for both large and small companies alike. With an HRA that you offer to your workers a per-month allowance for health expenses. Employees submit their eligible expenses for reimbursement , and receive reimbursement tax-free.

You can decide the allowance amount you offer your employees on a monthly basis. The best part is that with an HRA all allowances left unused at the time of the benefit year’s end stay with you. This way, you’re only paying for the health benefits that your employees actually need.

There are three kinds of HRAs for small companies. They include:

A qualified small employer HRA (QSEHRA) A type of HRA created by the Affordable Care Act (ACA) which is specifically designed for employers with fewer than 50 full-time equivalent employees (FTEs). The annual allowances are limited through the IRS.
The HRA with individual coverage (ICHRA) A HRA for businesses of all sizes. Employers are able to customize employee classes, and offer any allowance amount without any limitations. The employees must be covered by individual health insurance that is in line with the minimum coverage requirements (MEC).
A group coverage HRA (GCHRA) – Also called an HRA that is integrated, it is specifically designed to be used alongside an insurance plan for group health, such as a high-deductible health plans (HDHP).

In addition, a health stipend could be a cost-effective way to help employees with healthcare costs. Health stipends are similar to an HRA in that you can establish monthly allowances to employees for reimbursement. However, unlike an HRA these stipends for health are taxable.

Like an HRA health stipends could be used to pay health insurance premiums as well as out-of-pocket expenses. With less regulations in place than HRAs or health insurance plans, health stipends allow your employees greater control over their health.

How to offer employee perk stipends for small companies

Employee perk stipends, also called fringe benefits are a different way of providing employees with competitive benefits for small-sized businesses.

Stipends allow you to provide employees with monthly allowances for a variety of expenses, including wellness and remote work. Like the health stipend, you can have your employees can submit a request for reimbursement for the expenses that you allow.

You can reimburse employees for gym memberships, fitness classes such as fitness trackers or meditation apps, and more by offering an employee wellness compensation. These flexible employee perks help improve your employees’ overall health, leading to more productivity.

Rememberthat wellness is by far the most desired perk for young employees. Offering a wellness stipend allows the company to compete against bigger companies that might not offer flexible benefits for wellness.

If your employees work remotely, you can also offer them a remote-based stipend. When employees are in an office location, they have access to workplace-provided equipment, internet, and other amenities. When they work at home they’re using their broadband connection, internet, and space to work. Employees are able to use monthly payments to cover home office expenses, like phone and internet bills.

Offering a remote-based working stipend guarantees all employees adequately equipped to work at home. It can be an enticing offer to prospective employees.

Conclusion

Offering benefits to employees is crucial even for small business. In the wake of Great Resignation inspiring millions of employees to quit their jobs in search of more opportunities, benefits are an excellent way to draw and retain employees.