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People are the most valuable resource any company has. There is no denying this. This is why it is necessary to ensure that they are happy and engaged. Did you know that 78% of the employees responded yes when they were asked if they were likely to stay on in a company if offered a better benefits program?
As a person from your company’s HR team, you would be interested in knowing what the latest benefits are you can offer your employees. This article discusses some of the employee benefits that you can offer your employees. But before we go ahead to the list, let us understand what employee benefits are.
What are employee benefits?
Any benefits that employees receive, either tangible or intangible, additional to the salary provided to them, are called employee benefits. These employee benefits can also be either mandatory, in the sense that they will be provided to all employees in a category, or voluntary, in the sense that employees can opt for such benefits if they wish too. Example of a mandatory employee benefit in India is a leave on a public holiday and that of a voluntary benefit is a health plan or a meal card, you can opt or not for.
5 Types of Employee Benefits that HR Should Know
Let us now look at the different types of employee benefits that HR should know. Here are the top 5 that are still very relevant in 2024, given the work stress that most employees face at work.
Paid time off (PTO)
Employees may take time off which has been accrued over time or what they have been awarded recently. There might be a limit on the number of PTOs that each employee may be eligible for. There could also be variations across the categories of employees, with certain categories or few employees having more PTOs than others. Employees can maintain a healthy work-life balance, be more productive and are happier at work because of PTOs.
Health Insurance
Employees value that the company cares for their health. If the company provides any kind of health insurance, then employees would be delighted. Of course, this must also be balanced by intangible gestures like fun activities and stress-free work hours, all of which also contribute to the employee’s well-being and good health.
Government-mandated Benefits
Government-mandated employee benefits in India are many. Employees in India are entitled to ESIC and other mandated benefits, including leaves for maternity and sickness. They are also entitled to leave on public holidays and other special occasions when the employees are not required to come to the office. Such special days include days when polls are conducted, and voting happens.
Financial Benefits
Financial benefits provided to the employees by HR include retirement benefits, advance salary etc. These financial benefits convince employees to work harder because they can manage their expenses better and can also lead fuller lives as a result.
Indirect Compensation
Employee benefits, as an extension of the benefits you provide to the employees, includes reimbursements and allowances for fuel, accommodation, food and even healthcare that are done periodically in a planned or unplanned manner by the HR. This indirect compensation will help employees maintain their work-life balance and address any unplanned expenses with a little help from their company.
Other Benefits from HR
Apart from the benefits mentioned here, there are other benefits too. A benefit not mentioned here but provided by HR is EAP (employee assistance program), where the employee may have personal or work-related issues, and these issues are addressed by the HR through systematic and confidential counselling. In addition, the employee may also be provided child and dependent care support, which will help assist the needs of those dependent on the employee in a better way. These could either be the children of the employee or other dependents.
Best Practices for Your Employee Benefits Package
When designing your employee benefits package in India, there are a few things to keep in mind:
- Make sure you offer your employees benefits they will make use of rather than those that will not help them in any way.
- Send out a survey to gauge the sentiments of your employees and what their current needs are. This will help you manage employee benefits in a better manner.
- Can your company afford the benefits you are planning to offer? If not, you must try not to offer them and instead offer those that are sustainable.
- Be sure to let employees know how they can avail the benefits and what each benefit offers them. These benefits must not be just empty words that have no meaning.
- Make sure you offer all the benefits you are liable to offer under the law, given the employee classification and the nature of your business.
Are You Looking for an HR Partner to Manage Employee Benefits Better?
With nearly 25 years of experience in recruitment and staffing, Alp Consulting can be your trusted partner in recruitment. But we don’t stop there. Apart from payroll and compliance, we also manage day-to-day activities of HR to help ensure stellar employee engagement at your company. To help with this, we will also manage employee benefits in your company, ensuring that the right benefits are offered to the right people at the right time. Talk to us today and let us tell you how we can help.
