Role Of Employee Benefits In Improving Productivity And Workforce Motivation
Improving workplace productivity is a constant worry that every employer has to deal with. It is essential to look for better ways to engage employees. But not all companies can afford the best employee engagement strategies to enhance productivity. Employee benefits are the ultimate tool in such cases. With service benefits and offerings, you can satisfy employees and, bring a positive change in their professional output.
Employee benefits – Understand the concept.
What is an employee benefit? Is it a part of the salary structure? NO.
Employee benefits are distinct from the concept of a monthly remuneration paid to each employee. These are perks and advantages that employees enjoy in return for their service to the company. It can be provided in different ways, and all the benefits aim at providing convenience to those working hard for the company. It does not necessarily need to be in terms of money or payment. These benefits are also called Fringe benefits that companies offer to increase job satisfaction for the employees and retain them. Read along to know about the different types of employee benefits that make a positive impact in the workspace and among the employees.
- Insurance policies for employees: Corporate insurances offered by the employer are among the most common employee benefits. In fact, it is also the most effective one that any employee looks forward to. It can be a group health insurance policy or a workman compensation policy. Here, employers pay the premium annually to offer the insurance benefits to the employees and their family members. The insurance policies are active as long as they serve the company and, employees do not have to bear the cost of buying or maintaining the policy. It helps employees to stay stress-free during medical or accidental emergencies as they can find financial support from the insurer.
- Corporate discount offers: Many companies offer corporate discounts like food coupons, shopping vouchers, and travel discounts. There is an added advantage that an employee enjoys in return for their dedicated service in the company. Employee-centric businesses and multinational corporates encourage such service benefits as it helps develop their brand. These offers serve a dual purpose of generating a positive awareness about the company and satisfying the employees with the surprise offers outside of their paychecks!
- Paid leaves and sick leaves: Leaves without a pay cut are crucial to maintaining a healthy workforce in the company. It is also a type of service benefit. Create a paid-leave structure that balances the requirements of the employees without compromising productivity at work. It reduces absenteeism as employees can plan their leaves without worrying. Also, it is a sign of appreciation for the hard-working people in the company. A paid leave to take rest helps employees get back to work with doubled energy. In fact, you can also offer them the advantage of annual earned leaves to ensure optimal service.
- Retirement benefits: Retirement benefits by companies help in retaining loyal employees. Every employee wants job security and satisfaction. Retirement planning can be worrying if the company does not offer any benefits like provident funds, pension schemes, etc. Offering retirement benefits also creates a positive brand image for the company and motivates employees to be loyal to the company and secure their future after-work advantages.
Does it influence the overall performance?
Does employee productivity get influenced by the service benefits offered by the company? Yes. It has a direct effect on employee engagement and performance. When an employee gets what they need for enjoying a lifestyle they always wanted, they work happily for your company. It is a sign of gratefulness towards the company. Witness the following advantages of employee benefits and offerings –
● Motivated workforce: Research conducted by the Bersin Group claims that employee productivity at companies with good service benefits and incentive programs is 14% more than the rest. There is a 43% improvement rate in productivity as well. **
Employees have something to look forward to alongside their paycheck in the case of service benefits. It acts as a motivator for them. They put effort into improving their performance and thus, impact productivity. You can find an increased working pace in the workforce with the best employee benefits. Any service benefit that helps in covering the requirements of the employees is a boosting agent for professional productivity.
Provide essential service benefits like group healthcare coverage for employees and their family members to share their financial worries. It will make the employees work devotedly to ensure job security as they would not want to miss out on such lucrative opportunities essential for quality living.
● High-retention rate: Employee retention is a major concern for small companies and has an effective solution with the service benefits. Employees working for several years in the company know how the business operates and the ways to overcome the challenges. So, every company wants to hold experienced professionals in the company. When you offer employee benefits, the employees grow loyal to the company and does not want to switch job. Also, they work harder to upscale their professional position in the company. It brings long-term success to the employee and the employer. With better employee retention rate increase the productivity of the company in the long run.
● Improved engagement: Employees need to feel valued in a company and appreciated for their service. Only incentives may not be sufficient. You must provide them with something more to push them a step further in working better for the company. It prevents professional saturation and encourages them to learn and grow. Improve the existing quality of work by taking a wise step of offering service benefits so that employees feel valued at the organization. They will also focus on honing their skillset and learn better ways to contribute to the company’s growth. Performance and appreciation are interdependent; thus, you have to recognize the best ways to appreciate an employee’s service and reward them accordingly.
Focus on making a positive workspace
Above all, ensure to build a workspace that preaches service satisfaction. Besides offering employee benefits, establish a bond with them by communicating better. Understand what your employees require and offer them what fits your budgets and vision. It will help in channelizing this energy to stay motivated and bring their best version to work each day! Take small steps but effective ones in meeting the requirements of your employees. Witness the improved production rate in return for employee benefits offerings.