Compensation enriched with proper employee benefits can bring many benefits for employees as well as for the company itself, whether it is from a strategic, human or economic perspective.
Strategic point of view
Due to the low unemployment rates and the lack of qualified workforce, companies often need to increase their ability to compete so that they not only attract, but also keep employees.
As real wages usually aren´t disclosed, many companies try to emphasize their employee benefits, in particular, to distinguish them from the competition.
Economic point of view
It is better not to overlook what positive impact the benefits have from an economic perspective. Some benefits, such as professional courses, beverages in the workplace,company mobile phones, etc., offer companies and employees opportunities for tax optimalisation.
Businesses also have an option of buying services and products at a lower market price, if they buy larger quantities of a certain product or service. However, employees can use the services and products as if they were purchased at full market value. In addition, benefits are usually not a subject to inflation, as for example financial rewards are.
Companies can indirectly influence the productivity and loyalty of their employees by providing benefits that help to promote their health, development and social security.
These areas are crucial for the healthy functioning and mental health of an individual. Companies, which really care about their employees and feel responsible for their future, invest in those benefits, which have a positive impact on these areas.
Further below is a list of benefits, which are divided according to the impact that the benefits have on health, social security and employee development.
The health benefits serve mainly to ensure the care of the physical state of employees as well as their mental hygiene and balance.
- Areas for relaxation in the workplace
- Contribution to a private health care system
- Contribution to therapeutic and relaxation activities
- Contribution to sports and cultural activities
- Psychological counseling
- Refreshments at the workplace
- Massage at the workplace
- Physical exercises at the workplace
- Nursery for the children of employees
- Work from home – Home office
- Flexible working hours
- Paid vacation beyond the legal framework
- Paid days for a short-term illnesses beyond the law
- So called “sabbatical” – A career break for employees
Social security benefits
The main feature of these benefits is that they are more connected to the private life of employees and provide social security for their personal needs.
- Discounts on goods and services produced or provided by the organization
- Purchase of company assets at discount prices
- Corporate gifts
- Housing allowance
- Parking space at work
- Allowance for commuting to work
- Private pension plan
- One off retirement payment
- Food allowance beyond the law
- Loans for employees
- Life event bonus (Wedding, Baby Birth, Birthday)
- Return from parental leave bonus
- Contribution to employees´ children school needs
- Contribution to buy a wig for cancer patients
- Blood donation bonus
These benefits are designed to develop employees’ potential and to promote their self-realization, which is more closely linked to their working lives.
- Language education
- Soft skills courses
- Vocational training
- Leadership and management courses
- Employee recommendation bonus
- Bonuses and rewards based on company profit
- 13th and 14th salary
- Regular bonuses based on individual performance
- Reward for employee’s service anniversary in company
- Business laptop
- Business mobile phone
- Company car
- Corporate events and parties, teambuilding
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Author of the article: Ivan Kuzma, Founder of HRprofil.eu