Employee Benefits Are Exploding globally! Does your company provide these?
Simran Jagtiani
Empowering companies to discover exceptional talent | Associated with UpGrad as Adjunct Faculty for Study Abroad programs | Independent director and ESG enthusiast for effective corporate governance
Every day I hear new stories that employees of different MNCs, startups, SMEs tell me about the varied benefits they are receiving from their Employers. In this age of technology and fierce competition, while employees are trying to stage themselves as performer/s to get better perks and hikes, employers on the other hand are warring against each other to get the best talent in town wooing young professionals with different extended benefits rarely heard of.
An analysis conducted by the Society of HR Management reported that companies providing a higher number of employee benefits find their company's profits and employee satisfaction levels surging upward compared to those who didn't. Infact Employers stand out among their competitors in the Recruitment process and get labeled as the Best Place to Work company for offering such incentives that naturally attract best talent around.
Let's look at a list of some of the best companies in this image - India's Best Companies to Work For 2022 - Wall of Fame.
Some additional names are CK Birla Group, HDFC Bank, Angel One, Bharti Foundation, BlueYonder, IIFL, Elastic Run, Quess, Vistaar Finance.
The above names have achieved this status under a rigourous assessment methodology after taking into account Employee experience ie. Trust Index(c) and Culture Audit(c) https://www.greatplacetowork.in/great/100-best-companies.php
Today if any prospective candidate is considering a job change, he would apply to only those companies that have positive feedback on glassdoor, ambition box, an engaging Linkedin page, and loads of positive google reviews by its customers. If any of them look dubious, doubtable, or ambiguous they would rather avoid such companies.
So, coming back to Employee benefits - Who is eligible to get these benefits - Permanent Employees only or all employees across levels?
Usually, every employer sets a benchmark to provide certain perks and benefits for performing and worthwhile contributors to the organization's growth. Benchmarks are set department-wise, level, or category-wise, and subject to business contribution.
Some of the employee benefits heard of were a package of employee benefits in larger employers that included health care; a retirement or profit-sharing plan, paid sick and vacation days, and perhaps even a defined benefit pension plan, including group life insurance, and some higher study assistance.
However nowadays the new age tech companies are providing for all of the above and a couple more like Full Financial Wellness program,Not without my Family benefits, Paid Time offs, Mental health benefits, Professional Development Benefits, Flexible work Arrangements like Work from Home / Work from Anywhere , Social Responsibility or Volunteering opportunities, Home Services, Care Gifts, Pet-Friendly benefits, Rewards and Discounts, Student Loans, Gym Memberships, and the list is never-ending.
In a recent American Survey conducted by Laurel Road, 72% of the Americans below the age of 40 years said they found financial planning a mental strain while 79% of the same group said that they would be happy to get educated on smart money management, student loan repayments, debt repayments, and understanding investment options.
Designing an Efficient Employee Benefit Plan -
The HR leaders mull hard to prepare an effective and efficient Employee benefit plan so as to create a loveable and employee-centric work environment for purposes of retention and attracting new talent from outside.
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Some of the Must-Haves that credible companies should consider are
Before an organization decides to provide these benefits it must identify the goals achieved and the budget. These benefits must be strategic and beneficial for both employers and employees which are non-disputable in a court of law. Some employers also add all benefits in one compensatory package as part of one comprehensive CTC keeping the current tax structures in mind.
The benefits provided should not be just on paper or murky to keep the employees retained but they must be such that actually give benefit on a real-time basis which makes the workplace a great one to be in.
An employer must address these strategic questions before devising a plan-
a) How Can we underutilize or eliminate unappreciated employee benefits?
b) Which changes to the current plan design help save money?
c) Evaluating the administrative expenses associated with the benefits
d) How much will the employee require to contribute to the cost?
e) Considering the cost-cutting features
A proper mechanism of Employee Communication about the benefits is a must so that it entails a proper understanding, trust, and affirms loyalty towards the organization. A review of the employee benefits plan regularly is a must to examine the benefit programs regularly and ensure that the employee benefit plan is achieving the organization’s goals and the needs of the employees. Employers may also consider external factors when assessing the success of their benefits package.
Finally, am leaving you with a link to the World's 50 Best Companies in 2022 ranked by Glassdoor which has compiled a list of the best companies to work for in 2022, tapping survey data from more than 100 million employee reviews- a worthwhile read and maybe an instigator for your future employment terms.