Importance of Employee Benefits

A competitive salary and employee benefits are the factors that attract prospective employees to a company. According to the Randstad survey that was conducted to find the country’s most attractive employer brand in India, salary & employee benefits is the top priority followed by job security and interesting job content.

Employee benefits have gradually emerged as a powerful tool to attract and retain key talent and are increasingly being leveraged to enhance the Employee Value Proposition (EVP).

A study by Towers Watson called ‘India Benefit Trends’ survey has found that one in three Indian employers is spending more than 20 per cent of total payroll on benefits, yet a sizable 43 per cent believe their employees do not sufficiently value the benefits provided to them.

Further, over half of the employers surveyed believe that poor employee understanding of benefits is a serious challenge facing their benefits strategy in the next twelve months.

Employers’ New Focus on Productivity and Wellness
Benefit costs have outpaced both revenue growth and inflation, making employers more prudent and insisting on employees sharing the cost. Competition for talent is putting pressure on companies to squeeze the maximum financial savings out of plan design without diluting the benefits. Thus, employers have begun to focus more on productivity and attraction, retention and engagement through offering greater involvement and decision-making to employees. Furthermore, some employers are now showing an increased interest in wellness – a move from illness management to wellness management.

Top Choices in Non-monetary Benefits
Non-monetary benefits that increase their work life balance and improve their professional performance and prospects can be extremely impactful in regards to employee loyalty and motivation. Top choices in non-monetary benefits are:
• The ability to have more flexibility with one’s schedule,
• Additional training and development opportunities,
• Additional holidays and
• The opportunity to work abroad.
In many cases, providing these kinds of benefits to an employee not only improves satisfaction and productivity but also results in a more engaged, better trained and more experienced workforce.

HR Technologies as Tools for Better Benefits
Providing employees with meaningful non-monetary benefits does not have to be a daunting task, and there are numerous ways in which HR technologies can help companies in this effort. The right HR technologies can help align the new non-monetary benefits with the needs of the company and implement them in a way that supports the needs of the business. Most basically, HR technologies can allow companies to survey the compensation and benefits landscape of their workforce.
HR tools can also be leveraged to implement new benefits. Performance and learning HR tools are one way employers can quickly identify the knowledge gaps and needs of their workforce so they can determine what training is needed and how it should be delivered. Learning technologies allow employees and managers to track progress and provide assessments in real time; this empowers managers to play a role in their employee’s learning and help them identify additional, more targeted trainings and opportunities. With learning programs accessible 24/7, these tools empower more customized learning, creating a more impactful and personal experience.

 

Sources:

http://www.winstonbenefits.com/The-Employee-Benefits-Blog/bid/191616/Employee-Benefits-News-Roundup-2014-Trends-Edition

http://www.benecompintl.com/pdf/Midha.pdf

http://www.ngahr.in/insights/hr-trends

http://www.itsmyascent.com/hrZone/Employee-Benefits/17270/2

http://www.business-standard.com/article/management/indian-workforce-look-for-competitive-salary-employee-benefits-in-potential-employers-randstad-survey-114041601095_1.html

http://www.itsmyascent.com/hr-zone/The-benefit-of-benefits/152471