Companies who provide a wide range of enhanced benefits can greatly improve employee retention and reduce turnover. In general, employers who offer enhanced benefits to their employees will attract more candidates who wish to work for the organisation and will also retain the employees currently within the Organisation. Companies can put in place a range of benefits that will support the retention of employees, and enhance the company as an employer of choice. This article details the various benefits and incentive schemes currently in operation within many companies.
A survey carried out by Qualtrics and Sigmar Recruitment show that the most significant benefits to employees are:
- Private Health Insurance
- Paid Sick Days
- Educational Support
- Flexible Time
It is important for employers to remember that employees have different needs depending on their lifestyle etc. For example, some employees may value additional paid time off rather than a simple salary increase or bonus.
Matching benefits to each individual employee requires good leadership and relationship skills from the Management Team in the organisation. Managers who work alongside their teams, and ensure open communication secure information to assist the organisation in identifying potential benefits that will support retention in the organisation.
EDUCATIONAL ASSISTANCE POLICY:
Access to study is seen as a great benefit. An educational assistance program is designed to encourage employees to pursue additional qualifications relevant to their present position or future career within the Organisation. The inclusion of an Educational Assistance Policy highlights that the Company encourages and supports on-going training and upskilling in areas that are job specific. It would be best practice that an educational assistance policy be drafted where the terms and conditions of the educational assistance policy are outlined, such as length of service requirements and approved courses. If a course is considered to be directly relevant to the employee’s role, the Company can arrange financial assistance to cover the cost of tuition fees, examination fees and books up to a maximum amount per year.
Common educational assistance is outlined below:
- The Company will pay 50% of the fees upfront with the balance payable once the individual receives a distinction or minimum overall score of 85%.
- All fees paid are subject to the below policy in regards to termination of employment.
- If there are no formal examinations, the balance is paid when it is established that the employee attended at least 90% of the course lectures/tutorials.
- All assistance is subject to provision of relevant receipt(s) and/or invoices.
It is advised that Companies have clauses within policies to ensure that the amounts of assistance paid is reimbursed back to the Company on the termination of employees within timeframes set out within the educational assistance policy.
HEALTH INSURANCE:
Private Medical Insurance
Private medical insurance is discounted by the main health providers in Ireland – VHI, Laya, Aviva etc. This benefit is cost saving to employees with families and can often become the deciding factor when a candidate is considering an offer of employment.
Confidential Employee Assistance Programme
To help support employees a confidential Employee Assistance Programme (EAP) is available for you as an employer to offer to your Company. This service is delivered by an independent, provider of employee support services. Their staff are specialists in fields such as well-being, family matters, relationship issues, debt management, consumer rights, and much more. The EAP is paid for by the Company as a support service for employees, so that it’s free of charge for them to use. It’s available 24 hours a day, 7 days a week, 365 days a year and is accessible by phone, email and online.
The EAP can provide your employees with practical information, fact sheets and packs, resource information on support services in your local area and even short-term face to face or telephone counselling to help get them back on track. The comprehensive EAP website offers extensive resources including articles, interactive tools and regular online seminars. The EAP is designed to help employees with a wide range of work, family and personal issues. Confidentiality is the foundation of the service and Workplace Options is bound by professional standards regarding confidentiality and the disclosure of details of individuals who have contacted them.
SICK LEAVE/MATERNITY LEAVE:
Many companies introduce a sick pay and maternity scheme that is paid above the statutory.
FLEXIBLE WORKING:
Now moreso than ever candidate will look for companies that not only offer competitive renumeration but one that can provide flexibility in line with a work life balance.
Many Companies consider suitable flexible working patterns for their organisation which appeal to a broad range of employees. Options can include personalised hours, home-working, job sharing, self-rostering, shift working and term-time working.
These options would be specific to business requirements i.e., if a role requires the employee to be on site to meet clients that drop in rather than scheduled meetings then term time working or part time working may not be feasible.
Diageo and Microsoft offer flexible working hours, with many employees working from home one day per week. The Companies also have family days where staff can bring their kids to an event on site. Microsoft often facilitate an Easter egg hunt, or Santa at Christmas time to promote families in the workplace and their embracing of the same via work practices.
MONETARY BENEFITS:
Bonus
Bonuses are one of the main perks of achieving excellent performance. The annual performance bonus programme, is generally based on the company’s annual performance and performance goals linked to the individual also potential profit shares are offered where its profits with employees by paying a cash bonus potentially up to four times a year. This option may not be a feasible option for many companies however bonus incentives based on both individual and company performance are the way forward for many companies where competition for good staff is a challenge.
OTHER BENEFITS:
Technology Perks
It’s commonly known that perks are a hallmark of working for technology companies. Technology perks can include laptops for use outside of work, mobile phone benefits, tablets etc.
Employee Discounts
Many large companies have sourced employee discounts for their employees to avail of including but not limited to car insurance, AA membership, driving lessons and health and beauty etc. At consultancy group, Accenture, an employee discount programme is in place, offering a range of discounts to workers for shops, events, restaurants and fitness centre memberships.
Income Protection Scheme
Income Protection Cover (up to 2/3 of your salary) in the event of serious illness, subject to terms and conditions.
For example, in the event that something was to happen to an employee during the course of thier employment that would render them with a long-term illness or disability, the income protection scheme kicks in after 13 weeks of service and it pays the employee 75% of their salary for as long as the situation exists.
Travel Insurance
This is a large benefit but dependent on the composition of your workplace this may be an interesting benefit for employees. For example, for younger workforces this would be of benefit whereas flexible working may be of more interest to employees with families etc.
Car Parking
This may seem like a normal benefit but in large cities with parking costs, the threat of clamping and walking distance to work it is an indispensable perk. This is a significant benefit to vehicle users. However, it is important to note that Company is not responsible for any damage to cars or property contained within. It is advisable to ensure that any car registration details are included in a set database to the Intranet on commencement of employment
PENSION SCHEME & DISABILITY BENEFIT
Pensions and corresponding benefits are a significant cost to many companies but they are a benefit that many employees look for in the war for talent. It is important to remember that all employees should have access to a Personal Retirement Savings Account (PRSA) in accordance with Section 121 of the Pensions Amendment Act 2002.
As a benefit many Companies offer qualifying employees the option of joining a defined contribution occupational pension scheme and can avail of this option either after 6 months / 12 months or on permanency, depending on the terms of their contract or the Company policy on the same.
Temporary employees can also be provided with access to a Personal Retirement Savings Account (PRSA) in accordance with Section 121 of the Pensions Amendment Act 2002. It is advised that all temporary employees would be eligible to avail of this option immediately on joining the company or at any time during their employment with the company.
This scheme could include Disability Benefit cover which is a long-term income continuance benefit.
Both the pension and the disability benefit elements of the occupational pension scheme are subject to certain terms, conditions and exceptions per insurance brokerage. Full details of the current terms should be provided directly to the eligible employee from your broker after an employee becomes eligible to join.
LEAVE BENEFITS:
Compassionate Leave
There is no contractual or statutory entitlement to be paid for absences relating to compassionate leave and any payment of salary during compassionate leave is normally made at the absolute discretion of the Company.
Many Companies offer compassionate leave in the unfortunate event of the death of a family member. This can show the personal and caring side of the business which many employees look for in future employers. Immediate family members can comprise of the following; spouses, civil partners, partners, parents, children, brothers and sisters. In normal circumstances Companies might grant up to three days’ compassionate leave to be taken between the date of death and the date of the funeral. Non-immediate family can consist of grandparents, uncles or aunts. For non-immediately family members the Company would normally grant a maximum of one day’s annual leave for staff who wish to attend the funeral in these circumstances. Additional time off could be offered via the company policy once authorised in advance with management. It is common practise that if the funeral takes place on a non-working day or during annual leave, time off or payment will not be granted.
Study Leave
This helps facilitate employee training and development which in turn will be of benefit to your organisation study leave is seen as a great benefit. The majority of companies, if including study leave as a policy, will allow for a maximum of 2 days inclusive of study and exam per annum. Employees wishing to avail of the leave must submit their request in advance to their direct manager/HR department. Many employers place a minimum service requirement of 12 months to avail of this type of leave. This allows for adequate time and resources to be given to employees whom intend to stay with the Company in the longer term. It is advised that the study leave is only granted for a course/exam that is relevant to the role being completed in the Company.
Annual Leave
The annual leave entitlement and holiday pay for each employee is set out in the contract of employment in accordance with the Organisation of Working Time Act, 1997. Under the legislation, the entitlement for full time employees is 20 days. Employees joining the company after the beginning of the leave year are granted leave on a pro rata basis in their first leave year. As a benefit many companies offer additional annual leave benefits.
Many companies offer annual leave increases in line with service for example:
The Company, as a gesture of goodwill offer employees 21 days of annual leave. As a gesture of goodwill on behalf of the Company employees will receive a further 1 day of annual leave after every 3 years’ service. For example, after 3 years’ service you will have 22 days annual leave on a yearly basis and after 6 years of service you will have 23 days annual leave on a yearly basis. This is to a maximum of 4 additional days of annual leave i.e., 25 annual leave days in total.
This shows that the company has taken reasonable account of the employee’s need to reconcile work and family responsibilities and the opportunity for rest and recreation available to the employee.
WORK RELATED:
Service Awards
The purpose of introducing benefits is to ensure that employees are attracted and remain with the Company over other competitors. Long service awards recognise and place value on the contribution made by each employee to the success of the business.
With this in mind, companies have introduced Service Awards to recognise and reward employees who have completed valuable years of service within the Company.
The awards can be as follows higher or lower dependent on what your business decides:
- 3 years’ service: A gift to the value of €300
- 5 years’ service: A gift to the value of €700
- 10 years’ service: A gift to the value of €1,600
Service awards above 10 years could be issued at 5-year intervals and comprise of the 10-year service award and an additional gesture of appreciation.
Refer A Friend Programme
To save on recruitment costs and to promote positive word of mouth advertising many companies offer incentive scheme for referrals. Many Companies regularly advertise open positions and for all publicly advertised roles, input from employees to refer a friend should be welcomed and rewarded.
Where an existing employee (who has completed the relevant qualifying period for employee benefits i.e., one year service, or perhaps passed probation) introduces a new employee to the company for one of these publicly advertised roles by directly passing their CV to the relevant person, incentives could be given. This would have to be a standardised policy to ensure it is made available to all employees in a similar manner.
As a token of appreciation to the existing employees the below is often offered via additional payments:
- Once the referred employee has completed 3 months service, a gross payment of €500 will be made to the existing employee who made the referral.
- Once the referred employee has been made permanent, a further gross payment of €500 will be paid to the existing employee who made the referral.
Caroline Reidy – HR Suite