There are many types of financial offerings that a company offers to its employees, to retain them, and at times, to attract the best talent from the industry. The offerings work as tools to maintain the loyalty of the employee towards the company, especially if it is a relatively new company and aiming to establish itself in the competitive market.
Who decides the financial offerings and benefits?
The top management of the company, along with the officers of the Human Resources (HR) department, decide on the range and varieties of financial offerings and benefits for the employees.
The effect of providing financial offerings/benefits to employees
There is an observable and measurable positive impact of providing a range of financial offerings/benefits to employees. The main constituents of the impact are as following:
- An increase in the individual efficiency of the worker
- An increase in the productivity of the team
- A growth in the reputation of the company in the market
- More effectiveness in attracting better talent from the industry
- Establishing the loyalty of the employees
- Creating scope to build and integrated innovations in the business framework
- Accelerating the growth of the company in the long run
What are these financial offerings/benefits?
These offerings or benefits are basically cash/non-cash compensations paid to the employees of the company. Usually, the details of the benefits are clearly mentioned in the job advertisements. The official website of the company also has relevant information about the range and types of financial offerings/benefits for the employees.
The typical objectives of the financial offerings/benefits
From the perspective of an employee, there are some typical objectives of these offerings or benefits, such as:
- Offsetting the living expenses
- Improving the level of job satisfaction
- Helping the employee to maintain/improve health
- Preventing burnout
- Significantly improving the standard of life
- Preventing absences
Benefit 1: Company Equity
When you offer some kind of official financial stake to your employee, he feels special and becomes convinced of his talent being recognized by the company. There are several start-ups, especially the tech companies, which have been offering company equity to employees as financial benefits. In the long run, when the company grows, the equity brings in considerable financial incentives.
Benefit 2: Paid Leave
As the term suggests, it simply means payment for a day-off. It is a very good way to prevent burn out of your employee. Vacation time and sick leaves are included under the segment of paid leave. Giving paid leave to your employee is an effective way to take care of his mental health. It helps in enriching the work-life balance of the employee. The employee re-energizes himself and comes back to work.
Benefit 3: Performance-based incentives
One of the common offerings is performance-based incentives. The incentives play a good role in offsetting the living expenses. The HR measures the performance of the employee, each month. The management can take note of the details and accordingly reward the employee for his contribution. Such schemes of paying incentives help the employee to remain genuinely motivated and put more effort for the company.
Benefit 4: Tax benefits
There are some companies that indirectly provide financial benefit to their employees, by consulting them in matters of filing taxes. The employee seeks advice in dealing with income tax. Accounts experts of the company provide optimal solutions that come in handy for the concerned employee. Saving taxes means there is more amount of disposable income at hand.
Benefit 5: Skill development provisions
A company can’t grow if it does not evolve. The sure-shot way of evolving and becoming more competitive in the market is helping and training the employees to develop new skills, and enriching the overall expertise of its workforce. There are star-ups and small businesses that invest in training and development programmes. Mainly, the HR department takes care of designing and implementing the training modules for the employees. The strategy adds immense value in the career growth of the employees.
Benefit 6: Discount coupons and subsidised benefits
One of the crucial kinds of benefits is discount coupons. Such coupons reduce the prices of certain lifestyle services and items. Also, the company, at times, provide subsidised benefits to its employees. For example, an employee can use a company coupon to reduce the membership fee of a gym. He can also enjoy a subsidised lunch or dinner at a plush restaurant using the facility provided by his company.
Benefit 7: Good Retirement Plans
A young or mid-level employee gets attracted to a company when it offers a nice retirement plan. A well-designed retirement plan offered by a company is considered to be one of the most effective strategies to attract good talent from the industry, ensuring a stable growth for the company in the future. Usually, such plans are mentioned in the career page of the company’s website and/or in the details of the job advertisement.
Benefit 8: Wellness options
There are many kinds of wellness options offered by a caring company that takes care of the little interests and small luxuries of the employees. For example, unlimited supply of coffee, provisions of a rest room in the office, pick up and drop facilities, etc. These offerings make the employees impressed about the company.
Benefit 9: Quarterly or Yearly Bonus
The quarterly and/or yearly bonus is something like an incentive, but it is paid to the deserving employees in the form of a bigger lump sum amount. A bonus truly helps the employee to remain motivated.
Benefit 10: Health Insurance
Providing health insurance to employees is one of the best ways to implement the most efficient HR strategies to grow a company. The company can either go for insurance for separate individuals or buy a group health insurance The legal document issued to the policyholder that outlines the conditions and terms of the insurance; also called the ‘policy.
It is intelligent to consult a top-rated insurance broker on this matter, such as PlanCover, which has experience in the Indian insurance market. It offers a host of choices to explore. The HR or accounts department responsible to buy the The legal document issued to the policyholder that outlines the conditions and terms of the insurance; also called the ‘policy can flexibly explore the available options.