Employees are the backbone of any successful business. Without them, a company cannot function and will quickly fall apart. This is because employees are the ones who carry out the company’s vision and mission. They are also responsible for meeting customer needs and providing top-notch service.
To keep their employees happy and motivated, businesses must offer incentives that appeal to them. These incentives include good wages, paid time off, health benefits, and retirement plans. Employees also appreciate job security and opportunities for advancement. Businesses can attract and retain employees by offering flexible work schedules, telecommuting options, and training and development programs. The bottom line is that companies must do whatever they can to make their employees feel valued.
The statistics below show the importance of employee retention:
- It can cost up to six times more to replace an employee than to retain one.
- The average cost of losing a salaried employee is about 17% of that employee’s annual salary.
- 56% of employees would leave their current job if they found a better opportunity.
As a result, incentives are critical, even if you already have the standard benefits and compensation package. If you want to keep your best employees, offer them something extra, which comes in these forms.
The first type of incentive that businesses offer is health-related offers. In the U.S., healthcare costs are skyrocketing and will only worsen in the coming years. As a result, employers are offering health-related benefits to attract and retain employees.
Some expected health-related benefits include:
- Health insurance – This is the most common benefit that businesses offer. Many companies subsidize a portion of their employees’ health insurance premiums.
- Dental and vision insurance – Dental and vision plans are often part of the health insurance package. However, some companies offer them as stand-alone plans.
- Flexible spending accounts – This allows employees to set aside pretax income to pay for out-of-pocket healthcare expenses.
- Health savings accounts – These are similar to flexible spending accounts but have higher contribution limits and can be used to pay insurance premiums.
- On-site clinics – Some businesses offer on-site clinics that provide essential healthcare services to employees.
- Employee assistance programs – These programs provide counseling and other support services to employees dealing with personal problems.
- Childcare – Childcare is another employee benefit that is becoming more common. Many companies offer on-site or subsidized childcare facilities.
However, those are only standard incentives. Health-related awareness programs can provide an ideal engagement activity. It will be a great way to interact with employees and promote a healthy work-life balance. Here are some examples:
- Fitness challenges – These challenges encourage employees to be more active and can be done individually or as a team.
- Weight loss programs – These programs help employees healthily lose weight.
- Smoking cessation programs – These programs allow employees to quit smoking.
- Stress management programs – These programs teach employees how to deal with stress healthily.
You can also offer discounts on specialized care, whether medical or cosmetic. Microsuction ear wax removal services are ideal for every person, especially those unaware of the complications of earwax getting pushed further into the ear. You can find unique offerings like these, making their employee experience more unique.
Another type of incentive that businesses offer is time-related offers. Value their time, and they appreciate it when companies offer them benefits that give them more. Some expected time-related benefits include:
- Paid time off – This benefit allows employees to take paid time off from work for vacation, sick days, or personal days.
- Flexible work schedules – Flexible work schedules allow employees to vary their start and end times. This can be an excellent perk for working parents.
- Telecommuting – Telecommuting allows employees to work from home on occasion. This can be a great way to reduce commuting time and stress levels.
- Paid Sabbaticals – Paid Sabbaticals are becoming more common in the U.S. They allow employees to take a paid break from work for a specified period.
- Career development – Career development benefits help employees advance their careers. Some expected benefits include tuition reimbursement, professional development courses, and mentoring programs.
You can also offer non-monetary incentives like flexible work hours, extra vacation days, or half-days on Fridays. These incentives can be just as effective as monetary rewards for attracting and retaining employees.
Of course, monetary rewards are always a popular employee incentive. Who doesn’t like getting paid more? Some expected financial rewards include:
- Raises are the most common form of monetary reward. They are typically given annually and based on an employee’s performance.
- Bonuses are another popular form of financial reward. They can be provided for individual or team performance or as a sign-on bonus.
- Profit sharing is a type of bonus based on a company’s profitability. Employees typically receive a percentage of the company’s profits.
- Stock options give employees the right to purchase company stock at a set price in the future. This is a great way to incentivize employees to help grow the company.
Add These to the Package Now
There are many different types of employee incentives that businesses can offer. The key is finding the right mix of incentives to attract and retain the best employees for your business.