Benefits that are worth introducing into the incentive system

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Benefits, i.e. non-wage incentive bonuses, are called golden shackles. On the one hand, they are to increase the employee's productivity, and on the other to contribute to the increase of his loyalty to the company, thus reducing the number of departures from work and employee rotation. Do they fulfill their role? Research shows that they are only in the fifth place among the factors that determine the choice of an employer. The ranking is topped by attractive salary, convenient location of the workplace and development opportunities. Despite this, benefits should not be deleted from the list of incentives that we plan to implement in the incentive system. They are able to influence the motivation of employees, as long as they are properly adjusted to the needs of employees.

Benefits - what benefits do employees expect?

In 2014, Grafton Recruitment conducted a study on employee non-wage benefits. The obtained results indicate that individual incentive bonuses have a different impact on the increase in employee productivity depending on their gender. Most of all, women prefer sports cards, free health care, supplements for additional training courses, cinema or theater tickets. On the other hand, men are most motivated by access to modern technologies, flexible, unregulated working hours, a company car, a mobile phone or a laptop. Women use the possibility of remote work much more often, and men prefer to compete with their colleagues in the workplace.

The respondents were also asked to indicate the benefits they would like to receive from their employer. The list of the most requested incentive supplements is as follows:

  • private medical care - 53% of responses,

  • sports cards - 42%,

  • co-financing of language courses - 34%,

  • company car - 29%,

  • remote work - 26%,

  • co-financing of commuting - 25%,

  • hard skills training - 20%,

  • co-financing of studies - 21%,

  • additional days off - 19%.

Further places in the ranking include: co-financing for cultural events, food vouchers, pension insurance, business phone, laptop, subsidies for foreign holidays, availability of a relaxation room in the office, gift vouchers, participation in industry conferences.

Respondents' responses indicate that employees are most interested in benefits, thanks to which they can take care of their own health and develop their skills and competences. Non-wage benefits are also important, as they allow you to cover the costs of travel to the workplace. Employed people value their time, which is why they would prefer to receive more days off and be able to work remotely for efficient work.

Benefits and their impact on the amount of remuneration

50% of the respondents stated that they would not agree to work with a lower salary in exchange for a rich package of benefits. This indicates that the salary is still of fundamental importance when choosing a workplace, as often additional benefits offered by employers do not meet the needs of the employed people. The respondents also stated that they would have agreed to a lower salary if they had received a company car, private health care and co-financing for commuting.

Important!

Benefits have a much smaller impact on employee motivation than the base salary. Additional benefits are taken into account only when the salary is satisfactory.

 

Benefits - how to enter them into the incentive system?

75% of employees complain that they have no influence on the choice of non-wage benefits. Employers usually make their own decisions regarding the benefits granted to individual people. This approach is wrong. When creating an incentive system, one should take into account the needs of employees, and therefore talk with them about non-wage benefits that would interest them. Thanks to a reliable diagnosis of the expectations of employees, it is possible to identify benefits that will have a real impact on the motivation of employees.

It is also worth making the receipt of further benefits dependent on the job position. If the manager has the same rich package of non-wage benefits as the CEO's assistant, the benefits will cease to function as an incentive.

It turns out that it is necessary to analyze the competition. People working in a given industry often review the benefits that individual employers have to offer. If it turns out that company X offers a richer package of benefits, the employee will certainly try to find employment in this company. However, you cannot go crazy and follow your rivals in everything. A reliable diagnosis of needs allows us to propose such benefits that will attract and effectively motivate the best specialists in a given industry.