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Employee Recognition

Attractive Company Perks and Benefits to Retain Top Talent

employee benefits

Imagine you have two job offers on the table. One offers a high salary, and the other offers a slightly lower salary but comes with an array of attractive company benefits and perks like flexible work hours, comprehensive health coverage, and paid parental leave. Which one would you choose? Chances are, you’d consider the second offer more attractive, right?

That’s because company perks and benefits aren’t just frills. They play a crucial role in attracting and retaining top talent. As competition for skilled workers intensifies, perks and benefits have become a strategic tool to win the war for talent. In this article, we’ll explore what these perks and benefits are, why they matter, and how you can leverage them to retain your best people.

What are Company Perks? 

Company perks are extra incentives provided by employers to enhance the overall work experience for employees. These can include flexible work hours, remote work options, gym memberships, free snacks, and social events. Perks are not typically required by law and are designed to make the workplace more enjoyable and attractive.

What are Company Benefits?

Company benefits are non-wage compensations that supplement employees’ salaries and are often mandated by law. Examples include health insurance, retirement plans, paid time off, and parental leave. Benefits are substantial offerings aimed at supporting employees’ overall well-being and financial security.

The Current State of Perks/Benefit Programs

Today’s job market is more competitive than ever, and companies are going above and beyond to offer attractive company perks and benefits to entice top talent. According to a recent survey, 57% of job seekers consider benefits and perks among their top considerations before accepting a job offer. Furthermore, a study by MetLife revealed that 73% of employees are more likely to be loyal to a company that offers a robust benefits package.

Large corporations like Google, Apple, and Microsoft are well-known for their generous perks and benefits. However, it’s not just the tech giants; companies across various industries are recognizing the importance of offering competitive packages. From comprehensive health insurance to flexible work arrangements, businesses are investing heavily in benefits and perks to meet the growing demands of the modern workforce.

The Difference Between Employee Benefits and Employee Perks

Before we delve deeper, let’s clarify the difference between benefits and perks.

Employee Benefits are non-wage compensation that supplements salaries. Examples include health insurance, pension plans, paid time off, employee discounts, and childcare assistance. Benefits are typically substantial and often required by law.

Employee Perks or perquisites, on the other hand, are extras that can set a company apart. They’re not mandated by law and vary from company to company. Examples of employer perks for employees include free snacks at work, gym memberships, work-from-home options, professional development courses, employee recognition programs, and team outings.

10 Company Perks and 10 Employee Benefits to Invest In

When it comes to company perks and benefits, consider investing in the following to help you engage and retain your employees:

Company Perks:

  1. Flexible and Remote Work Options: Allowing employees to work from home or adjust their work hours can significantly improve work-life balance and job satisfaction.
  2. Employee Recognition Programs: Recognizing and rewarding employees for their hard work can boost morale and motivation. Software like Bucketlist Rewards offers an easy-to-use and engaging platform that enables managers and employees to recognize each other. With Bucketlist, you can effortlessly celebrate each employee’s special milestones with automated recognition and rewards and light up your culture with a customized suite of rewards and awards that celebrate your values and inspire results. Click here to learn more about what Bucketlist can do for you. 
  1. Wellness Perks: Gym memberships, yoga classes, mental health days, and subsidized fitness equipment for home offices can promote overall well-being.
  2. Food and Beverages: Offering free snacks, weekly catered lunches, or food delivery vouchers for remote workers can enhance the workplace experience.
  3. Pet-Friendly Workplace: Allowing employees to bring their pets to work can reduce stress and increase job satisfaction.
  4. Social Events: Regular team outings, company retreats, or holiday parties can help build a strong sense of community.
  5. On-Site Services: On-site services such as dry cleaning, car washes, or even massage therapy can save employees time and improve their work-life balance.
  6. Volunteer Opportunities: Encouraging and facilitating volunteer work can enhance company culture and employee engagement. In fact, 71% of employees say it is imperative or very important to work where culture is supportive of giving and volunteering.
  7. Travel Benefits: Offering travel incentives or subsidies for public transportation can be a valuable perk for employees. 
  8. Learning and Development Stipends: Providing funds for employees to pursue further education or certifications can boost their professional growth.

Employee Benefits:

  1. Health Insurance: Comprehensive health coverage, including dental, vision, and mental health services, is essential.
  2. Retirement Contributions: Offering competitive 401(k) matches or other retirement plans demonstrates investment in employees’ long-term financial health.
  3. Paid Time Off (PTO): Generous vacation, sick leave, and personal days encourage work-life balance.
  4. Parental Leave: Policies for maternity, paternity, adoption leave, and fertility assistance can be game-changers for employees.
  5. Child Care Assistance: Subsidizing childcare costs or providing on-site childcare services can relieve a significant burden for working parents.
  6. Professional Development Opportunities: Tuition reimbursement, training workshops, and in-house mentorship programs show commitment to employee growth.
  7. Wellness Programs: Beyond health insurance, wellness initiatives such as health coaching, mindfulness apps, and gym memberships can improve overall well-being.
  8. Life Insurance: Offering life insurance policies can provide peace of mind for employees and their families.
  9. Disability Insurance: Providing short-term and long-term disability insurance can support employees through unexpected health issues.
  10. Employee Assistance Programs (EAPs): EAPs offering counseling and support services can address personal and professional challenges employees might face.

company perks and benefits like childcare, time off, healthcare and more

How Perks and Benefits Impact Retention

Investing in company perks and benefits for employees is not just about being a “nice” company—it’s a strategic business move. Besides helping attract and retain top talent, a comprehensive benefits and perks package can:

1. Retain More Employees:

Company perks and benefits play a significant role in an employee’s decision to stay with a company. They feel valued and recognized, which enhances their loyalty. According to a Gallup study, a high employee turnover rate can cost businesses thousands, if not millions, of dollars every year. Thus, retaining a top performer is often cheaper than recruiting and training a new one. Furthermore, 60% of employees have said employee benefits were extremely or very important when considering whether to stay with their current employer

2. Strengthen Employer Brand and Attract Top Talent:

Offering competitive company benefits and perks can boost your reputation as an employer. This can make your company more attractive to top talent, helping you stand out in the competitive job market. Job perks and benefits are no longer an added bonus but a must-have. Companies offering attractive benefits stand a better chance of attracting the best talent to their ranks.

3. Increase Employee Productivity:

Happy, well-cared-for employees tend to be more productive. For instance, employees who make use of wellness benefits might enjoy better health, leading to fewer sick days and better performance at work. When employees feel their company cares for their well-being and rewards them, they tend to almost 80% work harder, producing higher quality work. A well-designed benefits program can boost morale and motivation, leading to increased productivity.

4. Improve Company Culture:

The right mix of company perks and benefits can create a positive, supportive, and inclusive company culture. These offerings often facilitate team bonding and improve work-life balance, which fosters a happier, more productive workplace.

    How different generations value company perks and benefits

    Understanding generational differences in the workplace can help tailor your perks and benefits package. Here’s a brief look at what different generations typically value:

    Baby Boomers (Born 1946-1964):

    As they approach retirement, this generation values perks like retirement planning assistance and healthcare benefits. They also appreciate recognition for loyalty and long service.

    Generation X (Born 1965-1980):

    Often juggling family and career, Gen Xers value work-life balance. Flexible working hours, remote work options, and generous family leave policies resonate with them.

    Millennials (Born 1981-1996):

    Millennials typically value experiences, purpose, and personal growth. They appreciate perks like continuous learning opportunities, travel benefits, and wellness initiatives. They might also appreciate benefits that support their values, like company-sponsored volunteer opportunities or sustainability initiatives.

    Generation Z (Born 1997 and later):

    This generation grew up in the digital age. The youngest generation in the workforce, Gen Z values technology, diversity, and social responsibility. Perks like up-to-date tech tools, diversity programs, and corporate social responsibility initiatives appeal to them.

    Understanding these generational preferences can guide your perks and benefits strategy, ensuring it appeals to a diverse workforce.

    multi-generational company perks and benefits

    Tips for Making Perks and Benefits Impactful

    Just having great company perks and benefits isn’t enough. It’s crucial to have a strategy that aligns with your organization’s mission, culture, and budget. Here are a few tips for crafting a successful strategy:

    Know Your Employees:

    Every workforce is unique. Survey your employees regularly to understand what company perks and benefits they value the most. Personalization is key here—the more targeted your offerings, the more impact they will have especially given 50% of workers would be prepared to accept a reduction in pay for more tailored perks. 

    Communicate Clearly:

    Given that 91% of employees feel as though their bosses don’t communicate effectively it’s important to ensure that employees fully understand the perks and benefits you offer. Clear and regular communication is crucial. Use newsletters, company intranet, or benefits portals to get the word out.

    Review and Evolve:

    The job market and employees’ needs change over time. Regularly review your strategy to ensure it stays competitive and relevant. Don’t be afraid to remove perks that aren’t working and add new ones based on employee feedback.

    Celebrate Milestones:

    Recognizing employees’ work anniversaries, birthdays, or significant achievements creates a positive work environment. This can be as simple as a company-wide email or as elaborate as a party or personalized gift.  

    Align with Company Culture:

    Your perks and benefits should reflect your company’s culture and values. For instance, if you pride yourself on being a family-friendly workplace, having generous parental leave policies reinforces that message.

    Budgeting:

    A defined strategy can help manage costs and ensure that your perks and benefits are sustainable in the long run.

    Legal Compliance:

    Ensure your offerings comply with all relevant laws and regulations. This is particularly important for benefits like health insurance or retirement plans.

    Competitive Advantage:

    Regularly reviewing your strategy helps you stay competitive as the job market and employee expectations evolve.

      How to Measure the Effectiveness of Your Perks and Benefits Program

      To ensure your perks and benefits are making the desired impact, it’s important to measure their effectiveness. Here’s how:

      1. Employee Surveys:

      Regularly survey your employees to gauge their satisfaction with current perks and benefits and gather suggestions for improvements.

      2. Utilization Rates:

      Monitor how often employees are using the perks and benefits offered. Low utilization rates may indicate that certain offerings are not valuable or relevant to your workforce.

      3. Retention Rates:

      Analyze employee retention rates before and after implementing new perks and benefits. An improvement in retention rates can indicate the effectiveness of your offerings.

      4. Employee Feedback:

      Encourage open communication and feedback. Use suggestion boxes, town hall meetings, or one-on-one sessions to gather insights.

      5. Performance Metrics:

      Assess changes in productivity, absenteeism, and overall job performance after implementing new perks and benefits.

      6. Industry Benchmarking:

      Compare your perks and benefits program with those of other companies in your industry to ensure competitiveness.

        measuring the effectiveness of company perks and benefits

        FAQs:

        1. What are the most common company perks?

        • Common company perks include flexible work hours, remote work options, wellness programs, free snacks or meals, and professional development opportunities.

        2. How do perks and benefits differ?

        • Benefits are non-wage compensations like health insurance and retirement plans, often required by law. Perks are extra incentives like gym memberships and flexible work schedules that enhance employee satisfaction.

        3. Why are perks and benefits important for employee retention?

        • Perks and benefits show employees they are valued, leading to increased job satisfaction, loyalty, and reduced turnover rates.

        4. How can I determine which perks and benefits to offer?

        • Survey your employees to understand their preferences, benchmark against industry standards, and align offerings with your company culture and values.

        5. How do I measure the effectiveness of my perks and benefits program?

        • Use employee surveys, monitor utilization rates, analyze retention rates, gather feedback, assess performance metrics, and benchmark against industry standards to measure effectiveness.

        Conclusion: Company Perks and Benefits

        In today’s competitive job market, offering attractive company perks and benefits isn’t just a nice-to-have—it’s a must. By understanding what your employees value and tailoring your offerings to meet those needs, you can create a work environment that attracts and retains top talent. Remember, the key to a successful perks and benefits strategy is regular review and evolution to stay aligned with the changing needs of your workforce.

        Investing in your employees’ well-being and satisfaction pays off in the long run, creating a thriving, productive, and loyal workforce. So, take a closer look at your current perks and benefits program. Are you offering what your employees truly value? If not, it might be time for a change.

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