One of the often-overlooked considerations when establishing total rewards is taking the time to consider why you offer them in the first place. While this is somewhat straightforward, it is helpful to evaluate which components are most important to your organization and keep these thoughts in mind to guide your decisions and ensure you offer the right perks for your employees.
Attract and retain high-quality employees
Onboarding and training new employees is expensive and time-consuming, often resulting in decreased productivity. Offering attractive benefits creates a level of stickiness that minimizes costly turnaround.
Both applicants and existing employees expect organizations to offer good benefits. In a market where qualified candidates can afford to be discriminating about where they choose to work, offering competitive rewards helps maintain your current workforce and facilitates attracting more desirable applicants.
Get creative with the perks you offer. Tailor them to the types of employees you wish to attract and retain. You may even gain an advantage over employers who offer larger salaries with unique or more robust benefit offerings than your competitors.
Demonstrate respect for employees and promote work-life balance
Offering quality benefits and retirement savings reinforces that you value your employees beyond their skills and contribution to the company. Benefits that promote well-being, good health, career development, and financial stability go a long way toward fostering loyalty, keeping employees engaged, and promoting your organization as an employer of choice.
Offer educational opportunities throughout the year that highlight your benefits to reinforce your interest in employee well-being. Highlight free wellness perks or health club benefits, set up seasonal competitions that take advantage of health plan incentives or services, or bring in financial advisors to assist with retirement planning. The dividends in retention, loyalty, and job satisfaction are well worth the effort.
Healthier productive workforce
Health benefits with affordable deductibles, co-pays, robust services, and wellness programs provide health resources that employees are more likely to use. This facilitates a healthier workforce with fewer unscheduled absences, reducing overall stress on the entire team. Planned absences can typically be accommodated with minimal impact on the workplace, while unplanned absences significantly disrupt productivity by creating additional stress for coworkers, upending schedules, and decreasing employee morale.
Balance healthcare premiums and the cost for employees to use the services with your workforce wages. It is of little value to go to all the expense and effort to offer benefits that your workforce cannot afford to use.
Employee job satisfaction
While many factors outside of total rewards contribute to job satisfaction, well-paid employees that are offered robust benefits and total rewards packages that suit them tend to have greater fulfillment and contentment in their role.
Are you limited on the healthcare plans you can offer? Consider other perks tailored to your demographic, like health club memberships, flexible schedules, company or community discounts, etc. These lifestyle benefits can be constant reminders of your value and, therefore, highly visible drivers of loyalty and job satisfaction.
Employers with well-regarded reputations gain an advantage over competitors because people want to work for them. Several factors influence your organization’s clout; however, a creative and competitive total rewards program goes a long way toward increasing the appeal of your organization. This appeal increases esteem, strength in the market, and pull when posting open positions.
Consider how you want to be regarded in the market and offer perks beyond your healthcare plan that align with that perception.
Tax advantages to employer and employees
Let’s not forget that there are financial advantages to some perks and benefits both for the employer and the employee. Many perks can be written off by employers and can be provided without requiring tax deductions for the employee. Retirement plan deductions, HSAs, and FLEX accounts enable employees to use pretax dollars, reducing their taxable income and providing a greater return on investment for their allocations. Workplace coffee, meal, and snack bars provide tax-free benefits to employees and promote job satisfaction. These tax advantages offer a win/win for everyone and are often very affordable additions to your total rewards program.