Employee perks
What are employee perks?
Employee perks are benefits provided by an employer on top of an employee’s salary and pension. They’re designed to boost morale and incentivise loyalty by offering workers something they might not get elsewhere.
These perks are often tailored to an individual’s preferences and lifestyle. For example, you might offer options ranging from gym memberships to spa vouchers and language courses, so there’s something for everyone. Offering employee perks is a great way for businesses to improve their recruitment and retention efforts.
What types of employee perks are available?
There are loads of different perks that can be tailored to be suitable for every type of employee.
Here are a few of the main types of employee perks:
- Flexible working – Employers might offer their workforce flexible hours, remote working or compressed hours. This gives employees the freedom to choose when and where they work, which, in turn, can benefit employers. Flexible working has been shown to reduce absence rates and improve mental health among workers.
- Meal benefits – It’s increasingly common for businesses to give employees money for meals outside of work hours such as breakfast, lunch and dinner. Companies might even provide a catered lunch to encourage employees to work from the office for some face-to-face time.
- Travel benefits – Employers might want to consider offering subsidised transport to and from work. Since the Covid pandemic, remote working has become more popular, and creating a cheaper commute can be an effective way to entice employees back to the office.
- Gym memberships – Subsidised (or free) gym memberships are often shouted about on job descriptions these days. Employers can offer reduced costs at local gyms, or even provide onsite facilities and equipment to make it easier for people to stay fit at work.
- Healthcare – Healthcare plans – which can offer medical, dental and vision care – are growing in popularity. The cost of healthcare is high, so it’s a great incentive for employees to bag a reduced rate.
- Retail discounts – Many companies offer discounts or freebies at local stores. For example, businesses with offices in co-working spaces might negotiate discounts with their ‘neighbours’ in the building.
- Family benefits – These employee perks include childcare, bonuses and leave for carers – sometimes even support for the elderly. This can provide some light relief for employees with family members who depend on them day to day.
What are the benefits of employee perks?
The main advantage of employee perks is the impact they have on motivation, satisfaction and productivity. Here are some of the reasons employers might choose to offer these benefits:
- Boost employee morale – Employee perks serve to make workers feel valued and appreciated during the 9-5. Added incentives can really boost their morale and job satisfaction.
- Improve retention – Enhanced job satisfaction can, in turn, have a positive effect on retention rates. That’s because employees who feel more secure and valued are more likely to stick around than search for a new opportunity.
- Attract the best talent – It’s no secret that the best talent will be drawn to the best benefits packages. So offering a wide range of employee perks can help to make your company more attractive for potential hires. Have a read of our chat with Payspective about how compensation packages can attract and retain top talent.
- Improve productivity – Allowing employees to spend more time on hobbies and things they enjoy means they’ll have more energy to dedicate to work tasks. This can help to reduce burnout and fatigue as well as improve overall mental health.
- Boost loyalty – Employee perks act as great incentives to stay with a company, as giving workers added incentives is likely to make them more loyal.
How can employers provide employee perks?
Hoping to provide employee perks at your company? The best place to start is by researching what's out there. From discounts to healthcare, there are endless perks on offer. Take a look at the core benefits and flexible allowances available on Ben for some inspiration.
And if you’re not sure which perks to offer, try asking your employees what they’d value the most.