We first published this piece back in March 2018, which seems a very long time ago now. Since then, our working and personal lives have been through an intense period of disruption, challenge, and change.
From the COVID-19 pandemic and associated restrictions to a re-opening of the world facing high inflation, supply-chain pressures, and labour shortages. For most companies, the post-pandemic economy is a very different place to do business than the one of 4 years ago. Salaries are on the rise while revenue and budgets for many organisations are tight.
What hasn't changed is the value of skilled, loyal people. They are integral to the success of any business, because they perform, work hard, and can help you identify and pounce on new opportunities.
Just as 2023 is different for employers, so too is it for employees. Many have gotten used to working from home, more flexible schedules, and balancing working and personal life.
Plenty of people have reevaluated their priorities and are looking for new opportunities, so we thought it would be a good time to revisit the best benefits and perks that you can offer your star workers as part of their employment package.
Attractive benefits demonstrate that people and their wellbeing matter, and that the company wants to see them succeed. This in turn helps improve performance, employee retention, and company morale. The business will also be more attractive to other highly-skilled workers.
So what are the 5 best benefits and perks to offer your people?
1. Pay increases and performance bonuses
This was and still is benefit #1.
A pre-COVID study by workforce management company, PERSOLKELLY, found that salary increases and performance bonuses were considered the most effective benefits offered by large Kiwi businesses for attracting and retaining employees. More recent research by recruitment company, Hays, backs this up, finding skill shortages had forced employers to offer higher salaries, while 84% of workers felt their performance and demand for their skill warranted a pay increase.
Of course, not every company will be in a financial position to offer a pay raise or bonus to their best workers right now (and there’s no legal requirement to give a pay increase unless you’re paying your employee less than the minimum wage!). But the conversation should still be on the table.
You might need to be creative and look at things like incentive plans that pay in shares in the company. This not only provides a great chance for employees to share in the company's success, it also gives them a lasting reason to help build it.
If you can’t afford raises or incentives, be honest. People will usually understand if the business has been doing it tough, and may well be fine revisiting the discussion at some later stage. But if you muck them around or deny them a bonus on false pretences, don’t be surprised if your employee’s performance takes a dive and they start looking for new opportunities.
2. Work-life balance
Prior to the emergence of COVID-19, maintaining a balance between working life and other personal activities was a priority to most workers and the pandemic has only reinforced this.
People have gotten used to working from home and juggling work and personal responsibilities. Remote work is now very much a norm for many, and that change is here to stay.
Smart employers realise that every employee’s idea of what work-life balance means is different and that certain measures work better for some roles more than others, so it pays to provide a range of options to choose from.
It may be flexibility in working hours and location, part-time contracts, or the ability for workers to scale their hours up or down when they become parents, get older, or want to further their studies.
It does take some faith, flexibility, and commitment as an employer. But offering options that improve your employee's work-life balance shows you trust them and in return, you can expect increased productivity and performance, higher job satisfaction, and reduced absenteeism.
2.5. Employee wellbeing
Putting some extra effort into supporting employee wellbeing is a really important consideration. Employees expect their employer to take their physical and mental health seriously, whether they are working on-site or remotely.
Look to create a culture that is safe and inclusive and be open with your people about the company's situation, plans and goals. Look to offer benefits that boost resilience and mental health, such as extra days off, wellness programmes, discounted health insurance or healthcare subsidies.
Having an Employee Assistance Program (EAP) that provides free, confidential counselling and support can really help employees deal with stressful problems, whether they are work or personal issues. EAP services are also good to have in place if you’re considering making changes to the business that will affect team members.
The good news is that in a report by talent acquisition company, Randstad, 70% of Kiwi workers felt their employer supported their wellbeing (up from 52% in 2020).
3. Professional development
In our modern working lives, people need to be able to develop their skills and career, and employees increasingly expect the company they work for to provide an environment that encourages learning and progression.
Frog Recruitment’s 2022 Employment and Salary Trend report found career development and training was the third most popular employee benefit (behind flexible work hours and ability to work remotely).
By working with your team members on development plans, you will provide a clear path for them to grow with the company. Remember to offer this to everyone in the company, not just managers and star performers.
Offering various options works best, as it will enable your employees to select the things that inspire them. For some, it may be gaining formal qualifications. For others, it may be attending workshops or hearing from inspirational speakers.
There are an increasing number of online training and certification programmes that are free of charge, so upskilling is more attainable than ever.
4. Increased leave
Beyond the paid leave that all permanent workers are legally entitled to, many companies now give their staff more than the minimum and also provide other leave options.
Giving extra days of paid leave for staying with the company for a predetermined period improves employee retention. Offering longer periods of paid or unpaid parental leave encourages parents to return to the company. Giving people time off to recharge or pursue volunteer work shows you support them, their values, and the wider community.
It's about demonstrating to your employees that they matter. By showing them you are willing to go above and beyond, they will be much more likely to reciprocate.
5. Discounts and freebies
This is a broad category and could cover anything from discounted health insurance, travel, or gym memberships to providing free food and espresso coffee.
Travel expenses – especially if your business is in a city – can be a major cost for your people, so providing lease vehicles (not just cars), parking, or public transport subsidies can be a big plus.
Many companies offer their own products at little or no cost. It may not cost much to the business, but it may mean a lot to your workers. It will also give them first-hand knowledge of the products or services the company provides to its customers.
Other popular benefits to consider
- Employee share offers.
- Financial and savings planning.
- Social perks, such as organised events and outings, regular lunches, and Friday drinks.
Your workplace doesn't need to have slides for getting between office levels as Trademe does, but you should ensure the benefits and perks you offer are of value to your people.
Understanding your workforce and providing a menu of benefits that people can customise will enable you to better enhance their working lives.
The popularity of different benefits changes over time too, so keep checking with employees to see if you are able to offer what they expect.
Of course, the prime consideration for most businesses will be which benefits and perks you can afford to offer. Transparency is key because failing to deliver on promises will leave employees feeling they have been short-changed and, potentially, resentful.
Be clear and fair
Doing right by your team members is always the right thing to do.
If you are proud of the way you treat your people, let others know of the benefits of working for your company. It will help attract potential employees.
But remember: all the perks and benefits in the world won't count for much if your workers don't feel you value them, treat them well, or they don't have any direction in the job.