These days, employees are looking for more than just a paycheck when job hunting. Employers are expected to consider employees' lifestyles too, and go above and beyond.
Some of the most competitive companies offer perks, benefits, and programs that focus on free food, childcare, pet care, and health and wellness, to name a few. These types of initiatives are crucial for attracting and retaining high-quality employees.
So, to keep your company competitive, follow this guide to find out all there is to know about lifestyle benefits. We’ll also take a look at the benefits that are the most sought after and how you can incorporate them into your employee package.
Lifestyle benefits are employment perks that fall outside the scope of the employee’s salary. In other words, employees receive these benefits as well as their salaries and bonuses.
These benefits are divided into two categories: necessary benefits and ancillary benefits.
Necessary lifestyle benefits are those that employees would usually pay for out-of-pocket if their employer doesn’t cover the cost.
An example of this type of benefit would be health insurance. This is a necessity for most people and their families. In order to be present at work and give their best effort, employees need to be healthy.
As a result, some companies subsidize or fully fund their employee's health insurance. However, because health insurance is so important, many employees will take out cover and pay for it regardless.
Some other examples of necessary benefits include:
· Emergency savings help
· Child care
Ancillary benefits are non-essential benefits. But, these are usually the lifestyle benefits that give your company a competitive edge. This is because they can significantly improve employees' lives, specifically their emotional, personal, and financial well-being.
Some examples of ancillary lifestyle benefits include:
· A flexible work schedule
· Student loan debt assistance
There are several advantages to offering lifestyle benefits to your employees. From retention to increased productivity, let’s look at some of these below.
Unique lifestyle benefits give your company a competitive edge. The more competitive your benefits are, the more interest you will get from high-quality candidates. So much so that 70% of employees report that lifestyle benefits are a key consideration when job hunting.
Many employers underestimate the impact happy employees can have on productivity and company loyalty. Offering personalized lifestyle benefits ensures that employees feel valued and appreciated.
As a result, they will be more likely to stay on longer, work harder, and even refer your company to others for work or recruitment.
Lifestyle benefits also ensure that your employees feel supported and encouraged in their work and personal lives. For example, free child care plays a significant role in helping single parents work productively without additional emotional and financial stress.
Receiving an award or acknowledgment also helps increase 78% of employees' productivity.
Having good company culture not only gives your company a competitive edge, but it's also great for marketing your brand. So much so that 65% of consumers said they were more likely to purchase a brand that treats its employees well.
Showing employees that you recognize and appreciate their efforts by offering lifestyle benefits is a great way to encourage performance-based competition. This is a far better option than offering salary increases or bonuses which often cause anxiety amongst the team.
Ancillary lifestyle benefits are therefore a far better option to increase productivity and competition in the workplace.
Employee retention is vital to any company. This is because often, employee turnover can cost twice as much as an employee’s yearly salary.
Offering personalized lifestyle benefits is a great way to keep your employees happy in their jobs. This is necessary as 49% of employees reported looking for new employment after 12 months as they feel dissatisfied with the lack of benefits and the ethos.
Further, employee retention is the best way to ensure that your company has a solid workforce.
Often a salary increase or end-of-year bonus is not financially possible. In this instance, offering an employee a one-month gym membership or a dinner for two at a nice restaurant can help to ease that burden. But, it does not take away any appreciation for the work done by the employee.
The more sought-after the lifestyle benefits your company offers, the greater your competitive edge will be. Below are some of the leading benefits and perks that potential employees look for when applying for jobs.
· Event and concert tickets
· Transportation and commuting costs
· Company vehicle
· Recreation and fitness opportunities
· Educational reimbursements
· Child care and/or pet care
· Paternity leave/maternity leave
· Cell phone allowances
· Remote working opportunities
These companies are some of the most desired employers in the world, and it’s easy to see why. They offer some incredibly unique lifestyle benefits to their employees.
There is no surprise here; Google has some of the most highly skilled employees due to its competitive edge. This is largely due to the fact that it is one of the best places to work in the world.
This is because some of its lifestyle perks include a $1,000 work from a home stipend, free massages, traveling allowances, and $500 'baby bonding bucks' vouchers.
Deloitte is also a highly desired employer with work-from-home opportunities and a $500 annual well-being stipend.
This coffee franchise is also well known for offering great lifestyle benefits to its employees. For example, it provides a $500 to $1,000 tuition reimbursement.
It’s clear that employee lifestyle perks don’t just benefit the employee. The advantages, financially and otherwise, are endless for your company.
If you want to get that competitive edge, consider following this ultimate guide on lifestyle benefits for your employees and watch your company come out on top!