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Motivating your employees is key to making sure they remain productive in the workplace. The performance of any business or company is only as good as the dedication of the employees. However, employees are not naturally dedicated. They have to be motivated to show their dedication to the success of the company.
One motivating factor for employees is the basic pay they receive from their jobs. While the basic paycheck alone is not enough, employees need benefits to keep them on their toes. Basically, employee benefits refer to the various types of non-wage compensation plans employees receive in return for their services.
Types of Employee Benefits
There are many types of employee benefits. However, they can be classified into four major categories, namely:
- Medical benefits
- Life insurance benefits
- Disability benefits
- Retirement benefits
As an employer, these are the types of employee benefits in Tampa Bay that you must consider to be part of the compensation package for your employees. Offering employees good benefits not only motivates them but also helps you acquire top talent in the market.
In competitive labor markets where there is a scarcity of employees, benefits are the determining factor as to who gets what talent for their firm. Firms capable of providing attractive employee benefits attract the most skilled and talented employees in the market. Employee benefits help to show employees that you not only care about their health but also that you are willing to invest in their future.
Reasons why Employee Benefits are Important
Increase the Loyalty of Employees to the Firm
Offering benefits to your employees is one way of making sure that they remain loyal to you. According to a survey done in 2018, over 60% of employees stated that one of the things that motivate them to continue working for a particular firm is the employee benefits package. That said, it is important to make sure that employees are provided with the most attractive benefits a firm can afford.
Moreover, it is also vital that employers give employees the option of choosing from a variety of benefits. This helps employees to customize their benefits package to their needs. When employees can choose the benefits that match their lifestyles, it becomes more convenient for them, and they are more likely to remain loyal to their employer.
Another way that benefits can be used to stimulate employee loyalty is by attaching them to firm ownership. Some employers may give ownership rights of the firm to employees as benefits. This way, employees have a sense of belonging to the firm, and they will do anything to make sure that the firm succeeds. The loyalty of employees is key to the success of any business because they can make or break a company.
They Stimulate Focus and Productivity
Failure to provide employees with the necessary benefits may affect their focus at work. For example, when employees constantly worry about medical bills, child care expenses as well as finances, it is hard for them to remain focused and productive at work. For that reason, employee benefits such as medical insurance ensure that employees are at peace and do not have to worry about issues in their personal lives.
In fact, a survey found out that over 50% of employees lose sleep worrying about medical bills and other financial issues. A sleep-deprived employee cannot focus at work. It is, therefore, important that you offer your employees benefits that help in relieving their stress. Helping employees take care of issues outside work will make sure that they are more present, focused, and productive during working hours.
Lowers Absenteeism Rate
Employees who have great benefits are less likely to be absent at work. Some of the reasons why employees miss work includes; health issues, financial errands, and family commitments. An employee with a good medical cover is less likely to miss a doctor’s appointments meaning that their health will always be in check. A healthy employee is rarely absent at work.
Giving your employees great benefits may also play an important role in reducing the number of financial errands that they need to run. Employees have to come up with side hassles to help them raise more money when they do not get enough benefits. In return, this makes them miss work more often. Benefits like flexible work plans can also reduce the number of work employees miss because of family commitments.
Improved Recruitment and Hiring
The ability of a firm to attract talented employees depends not only on the paycheck but also on the benefits it offers. In fact, employees may accept a job with lower pay but higher benefits instead of a job with a fat paycheck and no benefits. Benefits are equally important to financial pay. That said, employers must come up with compensation plans that balance the paycheck and the benefits as well.
Employees need to know that their future is well taken care of before accepting a job offer. In most cases, employees want promotion because of the better benefits offered rather than the salary increase. Not only do employee benefits help a firm in acquiring a great pool of talent, but they also help in their maintenance as well as reducing the turnover rate.
Employee benefits in the labor market can never be overrated. They determine the quality of employees that a firm attracts and how long they remain loyal and productive. Because a successful company needs a great workforce, it is important to keep employees happy and motivated. Offering them a wide range of benefits that can be customized to suit their personal lifestyles is a great way of ensuring the productivity and overall success of a firm.