Updated on: 24 May 2023
Published on: 27 May 2019
Table of contents:
In the modern employment landscape, financial and emotional wellness has become a priority in most workplaces. One of the ways to go about it is by offering company benefits to employees
to empower the workforce and minimise stress. In fact, management and HR teams must take these practices seriously to retain talented employees.
These company benefits play a vital role when employees are seeking new growth opportunities. They also help reduce employee turnover, promote better physical and mental health, and improve productivity.
While there are many facets to these types of compensations, financial benefits for employees are one of the most popular. Finance-related company benefits go beyond the statutory benefits related to gratuity or EPF and are offered by most multinational corporations and even growth-seeking start-ups.
Employees can leverage these financial benefits to manage money wisely in the short and long term and get access to credit when they need it. However, some companies shy away from them due to the associated employee benefits expenses that come their way. After all, it costs money not only to get started, but also to maintain such employee programs.
That being said, read on to know about 5 types of employee benefits provided by most organisations and how your company can bring down employee benefits expenses.
As per the National Commission of Labour, wage incentives provide added motivation for employees who have achieved a specific target and gone beyond. Such perks reward hard-working and ambitious employees, encouraging them to be more innovative and productive at the workplace, thereby increasing their efficiency. These incentives are mostly found in departments where immediate results can be measured.
For example, most companies implement such programs for the sales department of their organisation. Hence, apart from the base salary, the worker also gets a certain added amount for every ‘n’ number of sales.
There are several efficient wage plans to provide such financial benefits for employees. For instance, the Halsey Plan ensures that every worker gets a minimum wage along with a bonus if the work is completed before the stipulated time. The bonus can be set to any proportion, commonly 50% of the time that is saved by the employee multiplied by the per-hour rate.
Holiday bonuses are provided to top-tier professionals and entry-level employees alike and vary depending on their position in the company. Bonuses are commonly given once a year and most companies choose festivals or the holiday season since these are the times when there is a significant outflow of money.
The Payment of Bonus Act, 1965 has made it mandatory for establishments employing 20 or more workers to provide a bonus of 8.33% as a minimum for those earning ₹10,000 or less as their monthly income. There is no doubt that getting such financial benefits from a company is important to employees.
This company benefit allows employees to buy company shares at a lower price than the market price. Purchasing company stocks at a discounted rate allows employees to sell them when needed or play a proactive role in company ownership and management.
Reputed companies including Infosys, Microsoft and Amazon grant employee stock options. Such a benefit can spur employees to boost their productivity and put in their best efforts as it can be a lucrative option.
Financial security after retirement is of utmost importance to most employees. Retirement-related company benefits to employees can include contributions made towards the PF account as well as retirement gratuity. Some companies may also offer employees to encash their leaves.
All these benefits add to the employee’s kitty of funds to finance their golden years and address their responsibilities to dependants.
This fringe benefit enables employees to take leaves for a certain duration without any loss in pay. This type of company benefit eases the pressure on employees, allowing them to devote time to other aspects of life and maintain work-life balance.
Employees can choose to get paid time off for family vacations, R&R activities or even to address urgent personal matters. This way, the workforce can allot time to important life events without the fear of a pay cut.
These company benefits are just a small snapshot of the various ways in which firms, both large and small, can support their employees. Some of the others include health insurance, paid daycare or childcare, life insurance, free access to health services like gyms, availability of free food or tiffin services and more.
To offer holistic financial benefits to employees, partner with Fibe. We offer financial wellness programs that are easy to integrate and completely customisable. Trusted by over 800 corporates, our programs can help you deliver a suite of financial benefits for employees. They include access to easy credit be it for medical reasons, upskilling or with salary advances, personal loans and more.
The best part? You don’t have to worry about high employee benefits expenses as you incur no cost in offering these company benefits to your workforce! Get in touch with us to tailor our program to your organisation’s needs.
Financial benefits for employees help increase productivity while equipping them with the tools to minimise financial stress.
Providing benefits ensures employees that the firm is invested not only in their financial wellness, but also in their future. This helps any organisation retain its workforce and attract new talent.
With better benefits, a company can recruit talented professionals. This can help any organisation decrease its attrition rate while enhancing retention through employee satisfaction and increasing productivity.
Any benefit, compensation, or perk that an employee can get access to from a company is called an employee benefit. Such benefits are over and above the wages an employee earns.
There are many types of company benefits that employees can access. The top 4 that most employees and employers prefer include:
Health insurance is one of the most common types of employee benefits that companies offer in India.
Here are some examples of employee benefits offered by companies:
The cost of offering non-financial and financial benefits for employees depends on what the company chooses to offer. For instance, health insurance can vary from ₹500 to ₹25,000 per employee. By tying up with Fibe, you can offer a range of financial perks without any employee benefits expenses.
Category : Finance
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