Providing fringe benefits plays a significant role in attracting and making employees stay. From medical insurance to sick pay and meal allowances, these fringe benefits are often one of the top things considered by employees after taking the amount of salary into account. Below are a few other reasons why fringe benefits remain an integral part of employee retention.
Companies that provide fringe benefits are are more competitive and sought out by candidates. A bigger pool of applicants means more options to hire the best fit for a role. More than just making your organization more competitive, it also creates a quality and positive working atmosphere where employees know that they’re getting a good deal. The rule of the thumb is, the more competitive the field, the better your fringe benefits should be.
One good example of this is Google, which is currently rated as one of the best companies to work for in the world. Some of the most favorite perks of Google employees include “free rental cars for errands, free gyms, on-site daycare, wide options for free meals, and many more.”
Form of Investment in Your People
If you invest in your people, they’ll likely invest in your company as well. Companies that provide attractive fringe benefits make their employees feel valued and taken care of. In turn, this promotes employee retention, loyalty, and job satisfaction. More importantly, it also boosts employee morale as well as motivates employees to perform proficiently. All in all, employees feel more secure when they know that they have such benefits to fall on.
Less Net Cost and Save on Taxes
One of the best things about providing fringe benefits is that companies don’t your net cost is less compared to giving salary raises or bonuses. Moreover, some fringe benefits are even tax deductible so it’s less of a burden overall.
Make Your Fringe Benefits Stand Out
Fringe benefits is an added income for many employees. When you interview applicants, make sure that you let them know that your company has an amazing fringe benefits package. Once you hire a candidate, explain all the details about the fringe benefits they can avail of.