Employees are the primary assets of a company, along with its customers. So, it becomes essential that they are taken good care of by the employer. One of the ways how employers can showcase that “they care” is through employee benefits. While there may be critics who could argue that the cost of extra administrative resources poses a serious burden on the company, such notions carry no merit in the long term.

Looking with foresight, one can truly understand the utility of employee benefits in keeping the employee “truly” engaged in the company for the long term. Several additional benefits come along with implementing employee benefits. This blog attempts to change the notion of the decision-makers within the company who seem to undervalue the importance of employee benefits.

Benefits to Lose Out by Ignoring Employee Benefits

We have attempted to shed light on other aspects that a company will miss out on by ignoring employee welfare:

  • Employee Loyalty: A company has to go through its fair share of ups and downs. A loyal employee that stands by the company is crucial for its long-term sustenance. By ignoring employee benefits, even the employee may forego the company and quit when they are most expected to stand by the company. Operating without employee loyalty is daunting. It becomes increasingly hard to launch and plan new projects as the availability of talent is fundamental for the success of any project. This negatively impacts the growth and expansion prospects of the company. By implementing generous employee benefits, a company stands a good chance of retaining its best performers in the most critical roles without difficulties.
  • Focus & Productivity: An employee is not a stand-alone individual and is responsible for his/her family. Without employee benefits like childcare, critical illness coverage, financial coverage, etc., they will not remain engaged in their assigned role. They will always remain distracted by their family responsibilities which the company could have covered. Such an employee will not remain efficient or focused due to the added level of stress. This directly impacts productivity and only adds to the company’s wasted hours. Such a situation makes employee welfare a pertinent factor for improved and sustained employee productivity.
  • Steady Attendance: Three major reasons for absenteeism within companies are household finances, health issues within the family, and family commitments. By offering benefits, most of such problems can be taken care of. In the absence of those benefits such as group health insurance, the employees would be expected to handle these by themselves without any room for delegation within the family. Good companies that understand their employee concerns stay clear of such situations and offer their employees direct benefits that reduce their pressure – decreasing their direct involvement in such issues. This creates a situation where it becomes possible for the employee to attend work regularly without missing out on any workday.
  • Ease of Recruitment: Any company that treats its employees well can get the word around quite fast. Increased word-of-mouth publicity will project the company as “one of the best” to work with. This creates a situation where the recruiters within the company need not try hard in attracting talent. There would be enough applicants lining up eagerly waiting to get recruited. In contrast, if a company does not offer employee welfare, there is every possible chance of developing a bad reputation. Once a brand starts getting seen in a negative light, it becomes challenging to recruit new talents.

Moreover, it even becomes difficult to retain the existing talent and replenish vacant positions. This kind of scenario can make it difficult for a company to sustain itself in the long run. Overall, employee benefits like employee mediclaim policy, regular checkups etc can significantly improve the positioning of a brand in the job market. 

  • Employee Morale: When compared to a battlefield, employees can be called the foot soldiers in a company. Their overall well-being and satisfaction are critical for the growth, expansion, and sustenance of the company. Without high employee morale, it becomes increasingly difficult for companies to meet targets and take challenges head-on. Companies that undermine employee benefits will find it difficult to keep employees motivated and within the expected guidelines of the company. Most employees in such companies would just “show up” to finish their allocated tasks and collect their wages. Such a situation can be detrimental as it may become impossible to keep the company afloat in the long term. 

Conclusion:

Regardless of their size, employee benefits are becoming increasingly relevant for every company. Even if it is a small company, a limited number of benefits can be offered to keep the employees satisfied. The humblest of gestures from the employer can resonate well with employees if done with honest and sincere intentions.

We live in an era of high competition in every business domain, and it becomes imperative that the best talents of a company are kept happy and retained. Otherwise, it might be a little too late to realise the benefits of employee welfare.