Motivation, commitment and productivity of employees, as well as the attraction and retention of talent, are the main concerns for companies. There is a need to attract, encourage and retain talent as the same time as having a compensation system that ensures effective management of salary costs. Organizations must find a balance between costs and the ability to attract and retain the most talented workers in their sector.
Many researches relate that job satisfaction and employee motivation increase performance and productivity of employees. Therefore, happy employees are more motivated and more efficient. Consequently, social benefits become an effective method to achieve satisfied staff.
The social benefits are well seen by the employees. In fact, they are a determining factor when choosing the company in which employees want to work.
Let's talk about Social Benefits
Social benefits are somehow extras for workers that are not included in their salaries but contribute to get them a better quality of life. It's about facilitating the work environment, enhancing their job satisfaction, boosting productivity and serve as an attraction for the best talent in the market. They are defined as a non-monetary benefits and not substitutable by money.
Implementing social benefits in the company directly affects the increase in the performance of professionals. IESE Business School reports that in order to reduce absenteeism, increase productivity and improve the work climate, organizations must invest in Human Resources practices. Having good social benefits are very useful and effective for an organization because it is not necessary to have big investments to improve the physical and mental well-being of human capital and great results are generated.
However it is necessary to determine between these social benefits and other different concepts, such as salary improvements (voluntary improvement, complements ...).
Types of Social Benefits
The social benefits are not a closed list, but there can be as many as companies.
The most common benefits are accident and life insurance, contributions to pension plans and food vouchers. Employees feel highly satisfied with the measure of restaurant cards and its elimination would affect their motivation, according to the investigation carried out by IPSOS. However, the options of social benefits for organizations are very wide.
These are just some of the most frequent ones:
• Fuel tickets.
• Transport subsidy.
• Provision of work clothes.
• Payment of childcare services aid.
• Healthy eating or exercise programs.
• Financing studies
• Financial help to cover the school material of the worker's children.
• Promoting sports activities.
• Flexible compensation.
• Special benefits for holiday periods.
• Programs of incentives or rewards
• Promoting leisure activities
Social benefits are increasingly valued by younger professionals, after salary, the second most important factor when choosing a company or another it is whether it offers a solid work-life balance plan.
When working conditions are in employees favor, the average cost per employee is reduced, due to factors like the reduction of absenteeism, the improvement of productivity, the greater involvement of employees or the better working environment. All of this promotes commitment, loyalty and greater involvement of employees when working to achieve the company's objectives. So, investing in an effective Social Benefits plan would help companies to retain and attract new and great talent.