Are employee discounts trivial niceties that companies get when they’re doing well? Or are they core factors that make a company more desirable to work for and ensure employees remain happier, more engaged and more productive. I firmly believe in the latter and here are 4 reasons why benefits are not trivial luxuries.
1) Benefits tend to have significantly greater impact than the cash equivalent
Employee benefits costs less than 1% of an employee’s salary and can provide more value to the employee than an equivalent pay increase. In other words, benefits are a great cost-effective way to increase employee morale and loyalty.
2) Everyone loves surprises
Research has indicated that unpredictable events evoke more intense emotions than predictable events. For example, if your company has an annual dinner and dance, it’s not very exciting for employees. However, if there has been a lull for a few years and then suddenly a dinner and dance is announced, attendance rates are likely to be much higher. Very often benefits tend to have this surprise effect and this can raise the overall morale and mood of the office.
3) Benefits reflect care and concern for the employees much more than monetary compensation.
As stated by Richard Branson, Founder of The Virgin Group, “Take Care Of Your Employees And They’ll Take Care Of Your Business”. According to Gallup, disengaged employees cost American businesses up to $550 billion in lost productivity annually. Corporate benefits are one of the easiest ways to show care and concern. It’s nicer to receive a gift for Christmas or your birthday instead of cash and the same principle applies. Employees appreciate the thought of getting discounts that matter and can be used in their daily lives by their HR teams.
4) Inter-organization partnerships can be formed from such benefits.
For example, an IT firm might be looking for a hotel chain to provide a discount for their employees to enjoy staycations. The employees might love that hotel group and eventually feedback that to the procurement division. This could see the hotel group come onboard the approved vendor list for the IT firm and eventually offer an even better rates for business and pleasure stays.
In summary, employee engagement is an issue that many companies face today. Managers find it difficult to unlock the potential of their subordinates and keep them at the same organization. Benefits provide a solution that should be a core of every company’s arsenal in order to maintain a happy, motivated and productive workforce.