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Employee benefits reflect your company culture by showing what your company truly values. For example, companies that value individual initiative and creativity may offer funding or facilities for employees’ alternative side projects.
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In the face of the increasingly competitive talent market, employee benefits packages are getting more important in recruiting and retaining employees. In this article, Pacific Prime is showing how companies can take advantage of their employee benefits package to better reflect their company culture.
What Exactly Is Company Culture?
Company culture is the personality of the company. A good company culture should be genuine and able to withstand time and change. There are four main types of company cultures:
- Clan Culture: The organization is held together by loyalty and tradition, and the main values are rooted in teamwork, communication, and consensus.
- Adhocracy Culture: The organization promotes individual initiative and freedom, with the goal of finding creative solutions in a dynamic working environment.
- Market Culture: Built upon the dynamics of competition and achieving concrete results, this sort of organization is united by a common goal to succeed and beat all rivals.
- Hierarchy Culture: Founded on structure and control, this organization has a formal work environment, with strict institutional procedures in place for guidance.
Why Does an Employee Benefits Package Matter?
More than merely a health insurance package or a well-being program, properly designed employee benefit packages can bring a variety of advantages to the company, from higher productivity, stronger loyalty, to better employees’ mental and physical health, and a better reputation overall.
Higher Productivity
Good employee benefits packages that answer to your employees’ needs are likely to make their lives a bit ‘easier,’ lifting some problems off their shoulders and allowing them to focus on the task at hand, and hence, higher productivity.
Benefits like paid time off and flexible work arrangements can help your employees strike their work-life balance, getting the rest they need. Employees who are well-rested and refreshed are likely to work better than employees who are exhausted, stressed, and burned out.
Benefits like health insurance and financial wellness assistance could also lift your employees from worrying about their medical and financial situation, ensuring they can work with peace of mind that you are ready to support them.
Attract and Retain Talent
Employee benefits are one of the most concrete ways a company can show appreciation to its employees. A robust employee benefits package, with benefits that are truly helpful, makes employees feel valued and appreciated. This, in turn, serves companies well in retaining their top talent.
In the same manner, employee benefits can be a game-changer when attracting new talent. It is not uncommon for employees to opt for employee benefits that truly address their needs overpay. Your employee benefits package is also a reflection of what you value as a company.
Better Mental and Physical Health
Employee benefits such as ample time off, group insurance plans, and Employee Assistance Programs (EAP) can play an important role in enhancing employees’ mental and physical health.
More often than not, costs are the main factors that deter employees from getting necessary healthcare, physical, and mental. This can lead to decreased productivity for companies down the line as employees need to take a longer time off for conditions that have worsened.
Companies will also be at risk of higher insurance premiums as employees file for higher claims due to worsened health conditions that require more extensive treatments.
By providing support through benefits like health insurance and EAPs, employers are essentially encouraging employees to care for their health before further deterioration.
Better Image and Reputation
Thanks to the popularization of social media and online job boards, employees nowadays have a better grasp of what they could expect from their prospective employers, thanks to word-of-mouth reviews.
Robust benefits packages that are truly meaningful to the employees can go a long way in enhancing a company’s reputation and image as well as expressing the company’s culture to prospective employees.
5 Quick Tips on Designing the Perfect Employee Benefits Plan
The five tips you can take to design the perfect employee benefits plans are identify your business goals, calculate how much you can afford, keep in mind all options, and more. We will discuss these tips below.
- Identify Your Business Goals Your business goal is one of the main determinants of how your employee benefits will look. If your goal is to attract or retain young talent, your overall benefits package can look very different from those of companies that are trying to improve their bottom line.
- Calculate How Much You Can Afford Apart from your business goal, it is likely that your employee benefits will be governed by the budget you have. Once you have set your business goal and thoroughly studied what your employees need, it’s time to calculate how you can realize your ideal benefits package with the budgets you have.
- Keep in Minds All Options Aside from a basic group health insurance plan, there are many other benefits options that companies can consider so their benefits package could better serve their employees, for example, dental or maternity coverage, which are common riders for health insurance policies. If you are low on budgets, you can consider some options that will make your benefits packages more affordable, such as adding deductibles or co-payments as cost-sharing measures.
- Build Your Benefits Package Compare quotes from vendors that meet your employee benefits goal. Remember: the cheapest choice may not always be the best choice. Premiums are subject to adjustment, and plans with cheap premiums can end up less sustainable in the end. Multinational companies may also need to consider legal compliance in all jurisdictions they operate.
- Engage an Expert It can be a headache to compare plans and quotes from across different benefits vendors, and what about your industry benchmark? Employee benefits specialists, like Pacific Prime, can help you source offerings from the best vendors and benchmark your package against industry trends.
Benefits Package Qualities and Company Culture
Below we have summarized a list of qualities to match with the company culture for effective perks selection. According to our expertise, employee benefits should be:
Genuine Benefits
Employee benefits packages should be genuine and meaningful. In other words, something that they can truly benefit from and truly use.
For example, there’s no point in placing a ping pong table and a massage chair under the pretense of work-life balance, while employees are actually suffering from long working hours and unpaid overtime.
It is also important for the management to take the lead to walk the talk so that others can follow.
Relevant Benefits
Employee benefits may vary with different company missions or core values to reflect their natures. Benefits packages that are highly standardized or formalized may not work well for companies that prioritize dynamic working environments and flexible structures, for example.
Below are some perk examples according to the four types of company culture mentioned previously:
- Clan Culture
- Adhocracy Culture
- Market Culture
- Hierarchy Culture
It is also worth noting that there are company cultures that fall out of these four categories. One example might be a company emphasizing corporate responsibility by promoting company-paid time for their employees so they can volunteer for causes they care about.
Useful Benefits
Many employee benefits are useful on paper but not in real life, like parental leaves or fertility benefits, may not be that necessary for startups full of young people. Likewise, student loan assistance may not be practical for more senior employees.
A good practice is to obtain feedback on the benefits program from your employees for regular review. You can find out more about employee benefits engagement solutions in one of our previous features.
Start Improving Your Benefits Package
Before you start developing perks around culture, make sure to provide basic benefits such as medical, dental, and vision coverage, as these are now considered standard around the world. Feel free also to download our guide to structuring employee benefits packages for more in-depth advice.
With over 18 years of experience and in-depth knowledge of the insurance industry, our corporate team is on hand to provide professional advice and help you select the best-fitting solutions for your company and staff. Contact us today to get a free quote and answer all your questions!
Coming to Pacific Prime, she is ready to utilize her experience for the new pursuit. With a strong passion for storytelling and writing, she hopes her words could help bring people closer to the best international health insurance plan that works for them. After all, as a writer, there is no greater honor than when one’s words can add clarity to the world of the readers.
Apart from writing, she is an avid planespotter. On the weekends, you can expect to find her loitering around the airport, gawking at all the aircrafts taking off and landing. When the weather does not permit planespotting, you can find her huddling on her cozy couch, watching ballet and figure skating as well.
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