Employee Benefits and Perks
Recruiting and retaining top-tier talent is a challenge in any organization. An employee with desirable, in-demand skills knows that they can land a job wherever they choose, so employers need to make themselves equally as desirable to hire the best of the best. A couple of ways employers make themselves stand out is through employee benefits and perks. Although they sound similar, each one serves a different purpose in the well-being of employees. Let’s look at what employee benefits and perks are, some examples of each, and why a competitive employer needs to have both.
What is an Employee Benefit?
An employee benefit is non-wage compensation that compensates an employee’s salary. Benefits help cover basic needs that could otherwise be quite costly without additional help from an employer. Employees generally expect employers to offer a comprehensive benefits package, so having one in place is essential when attracting the best employees to your company.
There are a few benefits that employees have come to expect from employers, including the following:
- Health insurance
- Dental insurance
- Life insurance
- Vision coverage
- Stock options for publically traded companies
- Retirement plans
Employee benefits cover the more basic needs of your employees, and they are generally seen as more stable offerings. Without compensation for these benefits from employers, they could prove quite costly for employees, especially if they are responsible for dependents.
What is an Employee Perk?
An employee perk is an extra offered by an employer that serves as a want rather than a need. Perks are typically those benefits that make work fun or more appealing but don’t necessarily address foundational needs such as health or life insurance. However, they can be instrumental in creating high employee morale and assisting with recruitment and retention efforts. Many employees have come to expect the traditional benefits offered by an employer, so perks are those that can set a company apart from its competition when recruiting wanted talent.
Employers have gotten very creative when making their list of employee perks. Below is a list of just a few examples that some employers have implemented in their places of business:
- Employee recognition
- Paid volunteer time
- Complimentary snacks and drinks in the office
- Company-sponsored gym memberships
- Standing desks
- Off-site team-building activities
- Unlimited PTO
- Company book clubs
- Casual dress code
- Remote or work-from-home options
- Paid paternity leave
- Required breaks throughout the day
- Onsite daycare
- Pet-friendly offices
These are just a few of the dozens of employee perks that you may consider implementing in your own office. The best part is that extras can be customizable based on your company’s structure and culture – so you can easily mix and match the perfect combination of perks for your employees and organization.
Why You Need Both
Employers know that to be competitive with other companies to recruit and retain the best talent, they must offer a desirable list of employee benefits and employee perks. Companies that invest in their employees often have better employee morale and less turnover than those that do not. In today’s job market, it is essential to send a message to employees that their well-being is vital to the company; otherwise, they will seek employment elsewhere. Offer an attractive list of benefits and perks, and you will attract the best and brightest employees.