Friday, 01.02.2019

Benefits - what is worth knowing about them?

        In today's human resources management, an important role is played by the non-financial benefits system, tailored to the diverse needs of employees, who differ not only in age, but also experience and motivation to work. The ability to approprietly motivate a team and respond to the needs of an individual is today a necessity which not only improves the employee's well-being, but also affects the efficiency of the business as a whole. Let's take a closer look then at the issue of bonus benefits which are one of the basic motivating tools. What do employers offer? What do employees expect? What pros and cons will this bring for both sides?

        When analyzing trends, we can clearly notice an increase in budgets for non-wage benefits. Studies have confirmed this. Already today, the average amount spent annually on fringe benefits per employee amounts to PLN 984. On average, enterprises already offer around 5 types of such benefits.

How to attract a new employee? 

        There are many ways in which companies can reward their employees and thus enhance desired behaviors. The first place where the employer should mention benefits is the job advertisement. That way, he shows how he treats his employees, how he cares about the atmosphere in the company and what distinguishes him from the competition. Nowadays, it is obvious that potential employees are looking not only at the scope of duties and the proposed earnings. Hence, another field by which employers can attract new talents are non-pay benefits. Private medical care, additional insurance or multisport cards alongside flexible working hours and remote work opportunities are already a standard on the labor market. Most employees, especially those in senior positions, treat these supplements as just as obvious as the money paid to them every month. Deliveries of fresh fruit to offices and even free lunches are also becoming popular. What can help score  points  among employees is the originality of the bonus services offered.

        Employers outdo each other in ways to attract the best of the best. Starting from the possibility of coming to the office with a dog, through services associated with the „less stress” trend, such as massage or acupressure, ending with one of the most recent ideas - the availability of a personal assistant also called a concierge. The challenge is to meet the needs of individual employees because everyone needs additional incentives, motivators that stimulate activity. However, attracting dream new employees is one thing and caring for employees who have been working for us for some time quite another.

A way to appreciate an employee who already works in the company

        All kinds of rewards for commitment and seniority are just as important as the benefits offered at the start. The most common are Christmas bonuses. Gift cards and tickets to the cinema or theater are equally popular. Taking into account the diversity occurring in organizations, universal solutions that leave the choice on the employee's side work best. Larger companies can afford to offer company phones and cars, pay for courses or workshops, and even subsidies for studies or certifications. Such additions are an elegant way of appreciation and building a direct relationship between the employer and the employee.

        For employees benefits are an additional profit and, of course, a pleasant gift. Considering the value of non-wage benefits converted into cash, choosing a job with lower pay, but with more bonuses, may be a more viable option than choosing a position that promises higher basic earnings respectively. With this awareness, potential employees are more willing to take advantage of the benefits offered to them and more often inquire about them. However, it is advisable that together with a generous offer, there is precise information on what the particular bonus is associated with. An employee who is unaware of how the facilities offered to him work may become dissatisfied over time. Especially if there is some inaccuracy about whether the company offers full financing for some solutions or only partial co-financing. To avoid any misunderstandings,  considering non-wage benefits for your employees you should be very careful and accurate.

Why is it worth it?

         Using fringe benefits, the employer has the opportunity to make life easier for employees, save their time, take care of their health and well-being. This increases satisfaction among staff and results in their loyalty. By noticing and rewarding the dedication of employees, we motivate them to continue their activities and reduce their chances of professional burnout. Obviously, each coin has two sides, so the bonuses have their downsides for employers, too, and they are primarily additional costs. The services offered to employees generate subsequent expenses.

        Unfortunately, the State also imposes additional charges on many benefits. Employers are forced to pay bonus income taxes and social security (ZUS). However, we should take a global look at  fringe benefits and see them as an investment in the future of the company. A satisfied employee is an efficient employee and an efficient employee is the key to employer satisfaction and the overall success of all parties involved.