Employee Benefits – also known as perks or fringe benefits – form part of an employment package over and above salaries or wages. They usually include: pension fund; medical aid; wellbeing programmes; paid holidays; profit-sharing; overtime; and can include, travel, housing and education allowances.
Employee Benefits create a greater sense of reward for employees, act as a retainer for top talent, and help to successfully attract qualified talent over competitors. Benefits bring peace of mind to employees and greater stability to a company, leading to better production and ultimately improved profits. Those companies evaluating worthwhile packages for employees often show a consistent uptick in both retainer stakes and productivity.
The benefits of benefits
- Apart from helping to attract and retain high-quality employees, there are worthwhile tax deductions with regard to plan contributions such as pensions, health, disability and life insurances. When negotiating packages, employees will sometimes accept good benefits over a higher salary, which is advantageous for the business.
- Health benefits, including wellbeing programmes, help to improve employee health and morale and decrease absenteeism – and healthier people are generally happier people, and therefore more productive and focused on their jobs. With good health insurance, employees are more likely to keep a regular check on their health resulting in fewer sick leave days taken.
- Good benefits help your company to stand out and be more competitive in persuading potential candidates to join. When you believe enough in your company to invest in your employees, you’re building a reputation for growth and stability, your employer brand will be enhanced, and the right candidates will be seeking you out for employment rather than you having to search for staff.
- No business can survive or do well if staff are continually coming and going through a revolving door. You end up with a constant stream of new employees who have to be inducted, trained, worked into viable teams. Keeping experienced staff is pivotal in saving the company money.
- When employees feel valued through a well-structured benefits package, their loyalty is enhanced and their input increased. Greater motivation and dedication – initiated by a good rewards package – leads to harder work, improved productivity, and keener eyes on quality. Professionals are encouraged to remain for the long haul – and this creates the stability that a company needs to reassure shareholders and customers alike. Leadership is greatly enhanced by a loyal workforce.
- The benefits for employees are numerous. Apart from a form of forced savings with regard to building a solid retirement nest-egg, there is substantial cost reduction with regard to contributions to group retirement and insurance funds. The more people covered by a company scheme means the lower the cost per member per month. The savings for both employees and companies are considerable when measured against the costs of the same cover on an individual basis.
- Group retirement funds often provide a level of life assurance and disability cover that does not require the employee to provide medical information. This is called the medical free cover limit. The employee can be covered up to various limits without having to undergo a medical examination or declare prior conditions. These limits are determined by the level of benefits provided; employees’ salaries and salary distribution; the number of employees on the fund.
- Employing new people costs money in advertising and training, so it makes more sense to keep your experienced employees who know the company and its modus operandi. Valuing staff means that you can build your business with confidence. The groundwork laid today, and the initial sacrifice of setting up truly attractive benefits packages will ensure your business remains sound well into the future.
Empfin Solutions – the team that keeps your team happy
We’re an Old Mutual franchise with our primary focus on advising on and servicing umbrella pension and provident funds. Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.
Find out how you can benefit at: www.empfinsolutions.co.za