Employee benefits – what are they and what are they not?

Employee benefits are simply a form of extra compensation offered in addition to the base salary. Some of the most well-known include sports cards (Multisport), language courses, additional training budgets or, for example, access to psycho-educational apps on the phone (such as, among others, Focusly as part of MultiLife). However, more and more forms of providing non-monetary gratification to employees are emerging, as this is an area which effectively analyses and responds to people’s current needs.

In addition to employer-paid benefits, there are also those that do not require a monetary contribution – for example, the ability to perform your duties remotely or flexible working hours. It is worth remembering that non-wage benefits cannot be a form of compensation for inadequate remuneration. Benefits also do not include the tools necessary for the job, which, depending on the position, include eg. a company phone or laptop with the Office suite.

Is it worth investing in non-wage benefits?

Definitely yes!

Non-wage benefits:

• are an effective form of motivating employees – implementing them allows not only to encourage potential candidates to take part in the company’s recruitment process, but also to motivate and retain current employees in the long term;
• are a way to show gratitude to your employees, as well as stimulate them to care for their health or mental and physical well-being;
• allow to reward all employees, regardless of their position and its importance;
• their affordability, huge variety and easy access make them a good option for any industry.

Companies that offer a wide range of benefits are generally seen as more committed to employee welfare. This is because it is very important for both potential candidates and current employees to feel secure, appreciated and cared for, which is what non-wage benefits make possible.

A survey conducted in 2022 by PeopleKeep, a platform that enables employers to implement benefit packages, showed that as many as 83 percent of respondents consider their availability as one of the most important factors they take into account when looking for a job.

Benefit packages and employee experience – is it worth offering benefits to employees?

Employee experience is otherwise known as employee’s experiences with a company, collected throughout the entire period of employment – from the recruitment stage to parting with the company. They can be both positive and negative, and are influenced by many factors.

How can benefits affect employee experience?

• Motivation and retention

An employee who feels that their work is appreciated by their employer is satisfied, motivated and above all – loyal. Nowadays, staff turnover is quite a problem, and a rich benefits package can help counteract it. By committing to the well-being and satisfaction of employees, we have the opportunity to make them feel valued and cared for, thus reducing the likelihood of them seeking a better-rewarded position somewhere else.

A survey by insurance company Aflac showed that nearly half of the 6,000 respondents plan to look for a new job if their current employer does not offer non-wage benefits or has a small range of them. In contrast, another survey, conducted by Willis Towers Watson, suggests that as many as 78 percent of respondents believe they are more likely to stay in their current position if they are satisfied with the benefits package.

• Productivity

Not only motivation, but also the well-being of employees translates into greater productivity; and as we all know – greater employee engagement is a profit for the employer. Many studies have shown that the quality of our work largely depends on how well rested we are and the state of our psyche, and one of the goals of a properly designed benefit system is to support employees in reducing stress and stimulate them to spend their leisure time in a truly restorative and joyful way (e.g. through an online yoga course).

By offering employees various types of non-wage benefits, we contribute to increasing their efficiency and commitment to their duties as well as reduce the number of those who perform assigned tasks at an unsatisfactory level.