In a recent survey of more than 1,200 full-time employees and 300 employers, the Society for Human Resource Management (SHRM) found that more than half of employees consider benefits when choosing a job. This survey also found that employees who are satisfied with their benefits are more likely to stay with their company and are more productive. The indirect and non-cash compensation provided to an employee is known as “employee benefits”. Employees receive these benefits in addition to their pay and compensation. They are also known as fringe benefits, and they are provided to draw in and keep personnel. Every employee loves benefits. They seek thanks and acknowledgement for their efforts. Many employees work at companies because of the perks and benefits a company offers.
Employee satisfaction, job performance & productivity are directly correlated. Employee commitment will inevitably decline if employee satisfaction is ignored. As a result, there will be a loss of drive, effectiveness, and ultimately, production. A company’s most valuable asset is its workforce. But here we will not talk about the most expensive perks you can offer, but we will learn about low cost employee benefits you can offer your employees to make them happy at work. We’ll also see examples of the kind of low cost benefits to consider in this post, so you can decide which one will be suitable for your company.
Types of Low Cost Benefits Organizations Can Consider Offering
There are a number of low cost benefits organizations can consider offering. These can include things like discounts on products or services, free or discounted memberships. By offering these types of benefits, organizations can show their employees that they are appreciated and valued. Here you can see few types of low cost employee benefits to offer your employees:
- Health and Wellness Benefits
These can include discounted gym memberships, on-site fitness classes, smoking cessation programs, health risk assessments, and more. These benefits help employees maintain and improve their health.
- Financial Wellness Benefits
These can help employees save money and reduce stress, and can include financial planning services, debt counseling, and more.
- Work-Life Balance Benefits
This can help employees better manage their time and responsibilities, and can include flexible work arrangements, telecommuting options, child care assistance, and more.
- Education and Career Development Benefits
These can help employees further their careers and improve their job performance, and can include tuition reimbursement, professional development courses, and many more.
- Assistance Programs
This can provide employees with confidential counseling and support for personal and work-related problems, and can include stress management resources, substance abuse assistance, and more.
3 Main Categories of Low Cost Employee Benefits Every Organization Considers
There are 3 categories of employee benefits every organization should know. Which type of employee benefit you want to provide your employee is completely up to you but before deciding that, have a look at categories of employee benefits:
- Benefits for employees that are mandated by law
There are a few employee benefits that firms must offer to their staff members under federal law. These employee advantages are the same in all states and business sectors. These benefits include things like minimum wage, overtime pay, vacation pay, and sick pay, etc.
- Benefits for employees that aren’t mandated by law but are still regarded as customary practice
These employee benefits are not required by the law but organizations still consider offering this type of benefits because of its effectiveness and impact on the employees and organizations. Few examples include: health insurance, retirement savings plan, profit sharing, etc.
- Benefits provided to employees as a bonus or fringe benefit
Organizations can choose to give these types of benefits to employees depending on their performance at work or how they are helping the company to achieve its goals. Some examples include: relocation and housing options, student loan repayment, etc.
Read more about the different kinds of employee benefits you can consider: https://www.hirect.in/blog/5-overlooked-employee-benefits/
Things to Consider Before Offering Low Cost Employee Benefits
First, you need to decide what type of benefits you want to offer and how much you are willing to spend. There are many different types of benefits, so it is important to choose the ones that will be most beneficial to your employees. You also need to make sure that you can afford to offer the benefits you choose. Finally, you need to consider how the benefits will impact your business and whether or not they are worth the cost. You can consider these points before offering low cost perks at work:
- The cost of the benefits
- The effect the benefits will have on employee morale
- The impact the benefits will have on the company’s bottom line
- The administrative burden of managing the benefits
- Needs of your employees and how they’ll use offered benefits
- How effective your benefits are for your employees & organization
7 Low Cost Benefits to Offer Employees
There are some benefits which every organization offers to their employees nowadays. Like, health insurance, etc. But you can try to offer a few interesting low cost employee benefits to your staff. Like, fun sessions, or any training sessions. If you’re thinking about offering low cost benefits to your employees, then here are 7 effective low cost employee benefits examples:
1. Flexible Schedule
Schedule flexibility is a well-liked, non-traditional perk for both businesses and employees. According to the 2018 Pulse of HR poll, 39% of respondents said their company offers flexible scheduling as the top non-traditional benefit. Employees can avoid rush-hour traffic and resolve scheduling difficulties with their families, with the help of their flexible schedule.
Flex scheduling is thought of as a reasonably inexpensive perk, but both the business and the employee must plan ahead if a corporate-wide strategy is to be implemented. To achieve success, your HR department should be actively involved in the procedure. Consider the perceived benefits and drawbacks of flex time before deciding whether this strategy makes sense for your company.
2. Health Benefits
Offering health benefits or health insurance is a great way to attract employees and make sure your employees are safe. It shows that you care about their well-being and are willing to invest in their health. Affordable add-ons to health insurance policies include dental and vision coverage. Offering complete health coverage makes a great impression on consumers, clients, and the community that your business values its employees’ health. The reputation and image of your business may benefit from this.
Telecommuting can be a great employee benefit for those who value flexibility and independence in their work. Additionally, telecommuting can help employees save on commuting costs and time, and can allow them to better balance their work and personal lives. Some employees may prefer telecommuting as it allows them to have a better balanced life, while others may find it isolating and prefer to work in an office setting. Ultimately, the best employee benefit is one that meets the needs of both the employee and the organization.
4. Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSAs) allow employees to set aside money for medical and child care expenses on a pre-tax basis. This can save employees money and provide them with more financial security. There are a few ways in which a FSA can be beneficial for employees. First, it allows employees to set aside a portion of their income before taxes are taken out. This can lead to a lower overall tax bill for the employee. Additionally, an FSA can be used to pay for a variety of out-of-pocket expenses, including medical bills, and commuter costs. This can help to reduce the overall financial burden that some employees may face.
5. Employee Assistance Programs (EAP)
Employee Assistance Programs (EAPs) provide counseling and other services to employees who are experiencing personal or work-related problems. This can help employees cope with stress and keep them motivated. Employee assistance programs are beneficial to employees because they provide confidential counseling and support employees to deal with the difficulties they are facing. These programs can help employees resolve personal issues that may be affecting their work performance, and can also help employees identify and address work-related problems before they adversely affect job performance.
6. Tuition Reimbursement
One of the best low cost benefits that an employer can give to an employee is tuition reimbursement. This benefit can help an employee further their education and career, and it can also help an employer to retain good employees. It shows that you are invested in their development and are willing to help them reach their goals. It helps employees offset the cost of tuition and other associated expenses. Additionally, it can help employees stay current with their education and improve their job satisfaction.
7. Paid Time Off (PTO)
It is generally acceptable for employers to provide Paid Time Off (PTO) to employees, as long as the employees are still able to meet their job requirements. Offering paid time off is a great way to show employees that you contribute to their work-life balance. It can also help reduce turnover by giving employees time to recharge and reset themselves. Paid time off allows employees to take time off from work without having to worry about losing their job or income.
Low Cost Benefits to Offer to Millennials
The diversity of the workforce and the emergence of millennials have increased the need for a variety of employee benefits programs. Almost 35% of the workforce is now made up of millennials. They might not follow the established conventions since they are intelligent, aspirational, and active. They can help to create and implement new and innovative ideas that can help the company to grow and succeed. Organizations can consider these low cost employee benefits to offer millennials:
1. Student Loan Support
One of the main causes of worry for millennials is student loan debt. Employers who assist millennials in paying off their school loans are in high demand. This could also be one of the most effective strategies for luring and onboarding the brightest minds of this generation.
2. Cutting-Edge Technology
Millennials are raised in a world where everything is always at their fingertips. The ability to access information has always been available to them. Likewise, they anticipate it at work. Give these young people the best and newest technology tools so they can accomplish their jobs to the highest standard.
3. Initiatives for Corporate Social Responsibility
This generation wants to work and support many communities. Their involvement in charitable initiatives has been observed to be steadily increasing. Involving millennials in NGOs, Red Cross Societies, and other similar groups is the best approach to engaging them. Consider them opportunities to get involved in tasks related to social work.
4. Get Rid of the 9-to-5 System
These are workers who don’t think it’s important to follow the norms of the traditional workplace. They don’t believe that being effective requires working from 9 to 5 every day. Additionally, many reports indicate that 45% of workers would choose flexible scheduling above salary. Another incentive to alter the 9 to 5 workday at your place of employment is the growth of the gig economy and self-employment.
5. Individual Development
Another fantastic method to engage millennials is to provide them with the resources and the time to follow their interests. Try to give chances to develop their skills and talents. Paying for their activities is one method to achieve this. Another method is to create a variety of clubs based on the interests of the staff. These clubs could focus on drama, photography, or books. Additionally, millennials are looking for amenities like nap rooms, event passes, coworking spaces, free meals, and snacks.
Employees and their health & safety should be the first priority for any company. There are a variety of employee benefits that companies can offer. Benefits that companies can offer depend on their budget, financial status and number of employees. Large organizations do spend a lot of money on their employee benefits. But when it comes to small businesses or startups, they should consider low cost employee benefits given in this post.
1. How can employers make sure employees take advantage of low cost benefits?
Employers can make sure employees take advantage of low cost benefits by offering them as part of an employee benefits package or by advertising them prominently.
2. How can low cost benefits help employees save money?
Low cost benefits can help employees save money by reducing the amount of money they have to spend on amenities such as gym memberships, transportation, or meals.
3. What are some tips for getting the most out of low cost benefits for employees?
Some tips for getting the most out of low cost benefits for employees include using them regularly, taking advantage of all the benefits that are offered, and sharing the benefits with your friends and family.