Employee Benefits & Engagement Go Hand in Hand – Here’s How to Improve Both
Have you noticed your employees seem out of sync lately? Have you wondered what would motivate them to be more productive? If so, you may want to consider the link between employee benefits and engagement.
Today’s workforce is drastically different than the one dominated by baby boomers. If you’re hoping the simple fear of termination is enough to keep your employees motivated, you’re in for a surprise. A Glassdoor Employee Appreciation Survey showed that only 37% of today’s employees work harder because they’re scared of losing their job.
However, 81% of those surveyed said they’re motivated when their boss is appreciative. One way to show appreciation is to provide benefits, and not just those legally required. Here’s why.
Why Employees Become Disengaged in the First Place
Even employees with the best intentions can eventually become disengaged. This means that even though they’re physically present, they’re not fully committed to their responsibilities. As time goes on, they may stop being physically present on a regular basis as well. Listed below are some of the most common reasons why.
- Negative working culture
- Poor management practices
- Low salary
- Poor working conditions
- Outside stress or poor health
- Slow growth potential
- Limited benefits program
The direct impact a disengaged employee can have on your business is seemingly never-ending. An employee with no interest in their day-to-day duties can cause more safety incidents (with themselves and others) and slow down productivity. Their negative attitude can spread like a virus to your team.
Companies with large numbers of disengaged employees experience absenteeism, high turnover, and lost productivity that not only hinders company growth but can start a downward spiral that eventually becomes impossible to get out of.
Why Benefits and Engagement are Linked
The link between employee benefits and engagement is simple to understand, once you know to look for it. While every employee is different, we’ve found that the following three reasons are the most common.
Employees feel indebted
When someone receives something unexpected, they feel the need to return the favor. When an employee is finally matched with an employer that goes beyond the norm in the realm of benefits, they may feel they need to pay back this generosity by going above and beyond their employee requirements.
Employees feel more invested in their future
Without benefits, it’s difficult to consider a job a career. But once an employee can see that their employer is invested in their health, happiness, and finances through benefits, they’re able to see a future they can work towards. This leads to less stress and more engagement on the job.
Employees want to secure their benefits
An employee who understands the marketplace and that their company is a desired company to work for will work harder to secure and keep their position. Sixty-four percent of Millennials say benefits are extremely important when it comes to providing their employer with loyalty. With Millennials costing the economy 30.5 billion a year in turnover costs, any impact in this area may be substantial.
Boost Engagement with Benefits
If you think your employees are disengaged because of a lack of benefits, start the solution process by determining how committed your team currently is. Then create an environment that enables engagement growth. Finally, grow your benefits package, focusing on the whole employee.
For example, think of their current health and future finances, along with how they can create a healthy work/life balance. Some of these benefits could include:
- Paid time off (both sick and vacation)
- Health insurance
- Vision insurance
- Dental insurance
- Life insurance
- Retirement accounts
Don’t be afraid to ask what they want when it comes to benefits. If you can deliver, go for it. Don’t be scared to come up with some unique options as well, like on-site childcare, flu shot parties, or in-home cleaning services.
The link between employee benefits and engagement can’t be ignored. As expectations in the workforce evolve, what you offer employees needs to as well. When properly executed, your benefits package can attract top talent in your industry, lower your turnover rate, and make you an employer of choice.