Three months into 2023, many of us are still feeling the economic impact of the pandemic. Inflation is rising, the cost of living is increasing, and companies are going through some sort of restructuring or redundancy exercise, increasing uncertainty on a global level. That’s a lot to navigate, especially when you still need to deliver results while keeping your employees engaged.
And what’s more, these economic and organizational challenges have made it harder for companies to attract talent, especially when there are fewer resources and limited budgets to offer competitive salaries and bonuses.
To fill the earnings gap, many companies have shifted to offering competitive and enticing benefit packages in an effort to keep employees happy, engaged, and productive. Employee benefits are the non-cash provisions your employees receive as part of their total reward package. Companies must provide statutory benefits (also called mandatory benefits) to all employees. Statutory benefits will depend on the applicable country’s laws, but they’ll often include publicly managed medical insurance, retirement, paid time off, and certain allowances. Supplemental benefits are additional benefits employers give employees and can include: There are many reasons why it’s in the company’s best interest to provide supplemental benefits on top of the statutory requirements. Here are our top three reasons: Employee mindset around benefits has changed significantly over the last 5-10 years. It’s no longer enough to put a salary and statutory benefits in front of a prospective hire and expect them to sign a contract. Employees expect that employers will offer a robust supplemental benefits package for them and their families alongside any statutory benefits. You are more likely to attract higher quality, motivated and dedicated workers by showing your commitment to looking after your people by offering them an enhanced total reward package. In today’s competitive labor market, supplemental benefits can be the deciding factor in whether a candidate chooses to work for your company, and whether existing employees stay with you. It’s widely accepted that we all work better when we feel our ‘best’! Offering your employees medical, dental, or other health insurance benefits can help reduce the time your employees need to take off work by accessing treatment quicker privately. Supplemental health insurance plans will often provide coverage for both physical and mental health, and with increased awareness and acceptance around the need to support employee’s mental health, providing access to private resources (websites, digital counseling etc.) will show employees that you value them and are committed to supporting their wellbeing. A strong benefits package can significantly impact employee morale, as they will feel valued and that their needs are met on multiple levels. This leads to an increase in employee loyalty, productivity, and overall satisfaction with you as their employer. It’s worth remembering that happy employees will sing your praises outside of work, too, making it easier to attract the best candidates when you are next recruiting. Diversity, equity and inclusion (DE&I) describes policies and programs that emphasize including people of different ages, races and ethnicities, abilities and disabilities, genders, religions, cultures and sexual orientations. Employee priorities and needs continue to change. People are looking for employers that offer benefits that reflect their personal values. How does this relate to the benefits you provide? A simple example could be reviewing the language and definition you use for ‘dependents’ as part of your employee communications related to your supplemental health insurance plan. Subtle changes to update the definition and become more inclusive would be a step in the right direction and demonstrates a focus on health equity and how you wish to engage with the benefits you offer. In today’s evolving world of work, benefits must match your employee’s needs and support their wellbeing. To attract and retain the best talent, many companies have shifted their attention to supplemental employee benefits as a way of showing the additional value to the employee’s total reward package. Take the hassle and guesswork out of the process by utilizing a global payroll platform like Papaya Global. Papaya Global’s robust platform helps you show your employees you care about their wellbeing, creating happier, more dedicated employees, ready to weather any unexpected economic changes alongside you. Ready to see what Papaya can offer? Get in contact today
Employee benefits can be categorized into the following: statutory benefits and supplemental benefits.What are statutory benefits?
What are supplemental benefits
Why supplemental benefits are important for you as an employer and your employees
Attraction and retention of top talent
Healthy and happy workers
Supporting DE&I strategy
Bring and retain top talent with the right benefits
