Fringe Benefits: Creating and Maintaining Employee Loyalty

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Businesses run because of people. That is why businesses need to take care of their employees. Without them, businesses will break down. Imagine a store having no salesperson taking care of a customer, a barbershop without a barber, or a production outfit without the camera personnel, director, and actors.

Employee Care

No matter what industry it is, a company should take care of its employees. One way to do that is through benefits. Minnesota State lists the types of benefits a business can give. It includes:

  • Medical Insurance
  • Disability Insurance
  • Life Insurance
  • Retirement Benefits
  • Domestic Partner Benefits
  • Paid Time-Off
  • Fringe Benefits

According to the University of Washington, a fringe benefit is a type of compensation given to employees in a medium other than cash. A fringe benefit can be taxable or non-taxable, and it may come in different forms.

Educational Assistance

An employee does not want to be stuck in the same position he or she has been in five years ago. Growth is important in any industry.

An article by Harvard Business Review discusses why employees stay. It sites factors such as achievement, recognition, responsibility, and growth. HBR associates these factors as motivators for employees.

This is why when an employee expresses that he or she wants to enroll in a specific course, do not think of it as something that will take their time from work. Instead, encourage them and maybe suggest that they take a course that will be in line with their career track in the company. More importantly, do not only cheer them on but help them cover the expenses for their educational endeavor.

With your help, an employee will learn something that they can apply later on with the business.

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Family Assistance

Most of the time, family is a major factor in an employee’s productivity. For example, a single mom may not be able to focus on work because her child needs urgent pediatric care from an illness. This is especially true during the time of the pandemic.

A company responding to a family’s needs during a crucial time is something that an employee will not forget. By helping the family, the company develops a deep bond with the employee. It’s as if saying that outside the nuclear family, the business is their second family.

Family is something that a person will never neglect. If an employee treats a company as a family, it means it will always be loyal and do the best he or she can for it.

Employee Assistance

If a company treats its employees like family, they must not only look at their physical health but their overall wellness. One way to do that is by supporting them through personal problems.

Always take in mind that a person’s overall wellness affects their productivity. This is especially true when an employee is suffering from alcohol or drug addiction. Some businesses will immediately resort to firing a certain employee. But sometimes, good talent must not be wasted especially when he or she has contributed so much for the company in his/her better days.

This is where Employee Assistance Programs (EAP) come in. Giving them the assistance they need is not only something beneficial for the business but a company’s responsibility to its employees.

Equipment Supply

Nowadays, almost all types of work are dependent on technological gadgets and innovations. A simple benefit as giving an employee a laptop is a great motivational tool for work. It also gives employees no excuse to say that they do not have the necessary equipment they need to deliver work.

As connectivity is of utmost importance nowadays especially with people working from home, the benefit of being able to reimburse phone and internet bills is also a great way to motivate staff.

Stocks

One way to encourage employees to be more invested in the company is through encouraging them to literally invest in the company. This benefit means that an employee can buy stocks from the company out of their salary.

As stakeholders, an employee will feel a desire for the company to grow and succeed. They also know that to achieve this, they themselves must work better and harder.

Always remember that as much as a customer is vital for any business, its most important asset, and resource is its employees. Taking care of the staff and fostering an environment that allows growth is one of the crucial business strategies a company should never forget.

For a business to succeed, treat employees not as workers but as partners.

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