What are corporate benefits? What benefits and perks can you offer your employees? Corporate benefits include all fringe benefits granted by the employer.
There are some types of benefits that are mandated by federal or state law, such as minimum wage, overtime, vacation, unemployment and workers’ compensation.
There are other types of benefits that companies do not have to offer, but which they can grant their employees voluntarily. There are also some benefits and perks that you can negotiate as part of your compensation package once you’ve received an offer for a new job.
What do corporate benefits mean?
Corporate benefits are non-salary-related remuneration that can vary from company to company. They are provided by organizations in addition to salary to create a competitive package for the potential employee.
Corporate benefits are also referred to as follows: Employee benefits, benefits, employee offers, benefit programs, employee benefits
Why are corporate benefits important?
It is important to offer your employees so-called benefits because it shows them that you are investing not only in their general health, but also in their future. A solid benefits package can help attract and retain talent. Benefits can help you set your company apart from the competition.
Employee benefits can improve your company’s bottom line by motivating your employees to participate in wellness programs, for example. Healthier employees mean lower healthcare costs for your company. Employees with fewer health risks experience fewer sick days, fewer visits to the doctor and spend more time working for your company, giving their best every day.
What benefits can you offer your employees?
1. flexible working hours
This is an ingenious benefit, because it costs you as an employer nothing, but it really appeals to employees. If it suits your business, offering flexible working hours will increase employee productivity as they work when they are most productive. It improves the balance between work and private life and promotes well-being, which is very popular today.
2. working from home
Being able to work from home even just a few days a week is a great way to increase productivity and wellbeing in your workplace. This appeals to employees because they don’t have to commute, which saves them time and prevents unnecessary stress. This also means you have a wider choice of key talent; if an employee is able to work remotely, you can employ them from further afield, meaning you have a wider choice of candidates.
3. a fully equipped kitchen at the workplace
This benefit is so easy to maintain, with little cost to you as an employer, it can have huge benefits for your workforce and your business, as a recent study showed that 73% of office workers said that a well-equipped kitchen would make them happier at work, with 57% stating that it could lead to increased productivity’. This benefit offers employees a communal area where they can meet, take breaks and recharge their batteries. It is worth considering offering healthy and vegan options to reflect current health trends.
Wellbeing is a very big topic in the media and in the news at the moment and it’s something you should consider in your benefits, especially as they can be provided to your employees easily and free of charge. Here are some examples that you can offer:
- Regular breaks
- Team building
- Wellness days
- Flexible vacation
Fitness, like wellbeing, is a big topic at the moment and an area where you can offer free and low-cost popular services. Some ideas for your company are:
- Encourage people to walk or cycle to work.
- Offer monthly fitness sessions or activities.
- Offer showers at the workplace.
- Discounted membership at the local gym.
6. discounts from local stores
It is not only beneficial for your employees, but also for local businesses if you take a little time to visit local businesses and ask what discount they can offer your employees. This will encourage your employees to shop locally and support businesses while benefiting from reduced costs.
7. no dress code
This promotes comfort, creativity and individuality. A uniform or dress code can be expensive for employees if they have to fund it, or expensive for you if you provide it. If it’s not essential for your employees to wear a uniform to work, consider offering a no dress code policy so your employees can feel comfortable and work productively.
8 Flexible benefits
These are benefits that employees can choose according to their own interests. They offer a wide range of services from which you can choose. You won’t waste money on benefits that don’t suit your employees.
6 Advantages of corporate benefits
- Good benefits packages help to attract and retain good employees.
The most popular benefits are good company health insurance coverage that includes vision and dental, as well as a comprehensive vacation policy or flexible sick time. If you can offer benefits that have value, you are more likely to attract and retain valuable employees.
- Tax deductions may be possible.
Employers who offer supplementary benefits can deduct the contributions to their plans from tax. This includes all insurance options, pension contributions and other costs associated with the benefits.
- With a good benefits package, you can save money on salaries.
Many employees are prepared to accept a lower salary for a better benefits package. Considering that salaries are the highest expense in most companies, this can be very helpful in a tight budget year.
- Good social benefits can reduce employee absenteeism.
This applies in particular if a comprehensive company health insurance plan is in place. Wellness initiatives that help employers save money and allow employees to expand their insurance options or earn premiums also help reduce the number of sick days.
- A comprehensive benefits package can reduce staff turnover.
One of the biggest hidden costs that every company has is the cost of training a new employee. High turnover rates can result in costs of tens of thousands of euros per new employee, which can be avoided by investing in a good employee benefits package.
- They create opportunities for word-of-mouth advertising.
If an employee gets 6 weeks of vacation every year, they will tell their family and friends about this great company benefit. This enthusiasm creates a natural brand ambassador for the company, helping it to recruit more good employees without the cost of advertising a vacancy over a long period of time.
6 Disadvantages of corporate benefits
- They cost money.
Average employee benefits today are almost equal to the amount paid out as a salary. This is a cost that needs to be managed effectively, especially as many employees do not consider benefits as part of their income package.
- Certain employers may have few options available to them.
Small companies in particular are limited in the type of social benefits they can offer. This is because better benefits, especially pension or retirement plans, usually come with higher administrative costs that a small business may not be able to afford.
- The costs of social benefits are not static.
This applies in particular to employers who offer comprehensive company health insurance benefits. The cost of health insurance has been rising steadily and rapidly, which means that either benefits are being cut or more costs are being incurred to maintain the current benefits package.
- There may be problems with compliance with the law.
Certain benefits must be made available to employees in a certain way. To ensure that a company complies with these regulations, legal fees must be paid to check that everything is legal. This is another cost that many employees don’t even realize exists to provide them with the benefits they need.
- Errors in employee benefits can lead to legal disputes.
If a company makes a mistake in providing a promised benefit to an employee, there is a good chance that the employee will file a lawsuit. Such an error can also lead to official fines and, in addition to the costs for the service that must nevertheless be provided, additional legal fees are incurred.
- Even great benefit packages can be perceived as “not enough”.
There will always be employees who feel overworked and underpaid, no matter how good the benefits package is.
Books on corporate benefits*
Employer branding in SMEs. Benefits in connection with legal measures against the shortage of skilled workers
*Since these are affiliate links, I have to mark this section as advertising.