Currently benefits are one of the highest priorities for professionals when choosing a job. Even exceeding the salary. Therefore, it is clear that it is essential to give special attention to the subject. But what are the benefits for employees that generate ROI for the company?
Most employers have already realized that benefits help to attract and retain talent, therefore, the offer of advantages has been increasing more and more in companies. However, to have good results, it is necessary to know where to invest.
In this article, you will see how to calculate the ROI of benefits and how to put together a package that will bring results to your organization. Check out everything below!
What is ROI?
The acronym ROI stands for return on investment. It is a common metric in the corporate world to calculate the cost-benefit of a given investment, indicating how much real profit it has generated for the company.
Initially, ROI was used more in areas related to finance and administration, but gradually it was being adapted to other sectors. In HR, it is already common to hear Hiring, Training and Benefits ROI, as is the theme of this article.
How to calculate the ROI of benefits?
Calculating the ROI of the benefits is a big challenge, since the return generated by this investment is very subjective.
For example: according to studies, social and relaxing activities increase the creativity and the capacity for innovation. While many employers consider this type of benefit an unnecessary expense. Those who invest in this will certainly see positive effects on the performance of employees.
However, unfortunately you can't calculate creativity and innovation. And when making decisions about where the company's budget is going, the board of executives and the CEO need strong statistics to justify their choices.
Then, how to translate this return into numbers?
The secret is to observe indicators directly influenced by the investment in benefits for employees that generate ROI. Among them, the main ones are the rates of engagement, productivity and talent retention.
According to Incentive Magazine, highly engaged teams generate, on average, 29% more revenue and are 50% more likely to win customer loyalty. In addition, the retention of professionals in these companies is 44% higher.
To get close to an exact number when calculating ROI, consider the amount invested in a benefit versus the generated profit by the employee in a given period.
THE Reload Media, an Australian company, has had good results with this method. For every dollar spent massages and other benefits for about 40 employees in 12 months, there was a $ 11 return. In the period, the turnover in the company was 20% lower than the average of the competitors.
What are the benefits for employees who generate ROI?
To offer benefits to employees who generate ROI, the keyword is relevance. Ping-pong tables and naps may seem like a good choice to attract new generation talent, but that kind of enjoyment has no lasting value.
Prefer options that facilitate the employee's routine and improve the long-term quality of life. Check out the main alternatives below.
1. Wellness programs
Absences of employees, especially unplanned ones, cause greater impacts than a simple drop in performance. In a american research made with more than 1000 people, 75% HR professionals consider that these shortages generate major losses in productivity and revenue.
However, establishing a wellness program it is an excellent strategy to prevent this problem. This type of initiative helps employees to lead a healthier lifestyle, so that they do not have to miss work.
What should be included in the program? In-house gym or agreements with gyms tend to be very successful among professionals. It is also interesting to offer breaks in the working hours for small physical activities, such aslengths, workplace gymnastics and yoga classes.
Encourage care with food and the mental health are other essential initiatives to maintain well-being at the top of the team. To offer fruit shipping during the experienced and open debates about depression and anxiety these are some effective measures that the company can take to meet this need.
2. Out-of-office activities
Teams that have fun together, stay together. Promoting relaxing activities outside the office is one of the main benefits for employees that generate ROI, as they increase the happiness at work and team engagement.
It can be anything from simple, like a team lunch, to more elaborate events, as a way out sports practice and happy hours. This type of leisure is able to improve relationships, the sense of collaboration and teamwork, in addition to reducing stress.
All of this translates into more motivation, concentration and productivity on a daily basis, which contributes to a great benefit ROI.
3. Benefits for personal life
To implement benefits for employees that generate ROI for the company, just focus on the work environment: invest in benefits that generate saving time and money for your employees.
This includes services such as home cleaning, car washing and maintenance, daycare for children and whatever else fits in creativity and budget. What matters is to be relevant and bring a real advantage to the person's routine.
In addition to making the employee satisfied, this type of benefit increases productivity and concentration in everyday life. After all, the less time a person needs to think about personal life during working hours, the more time they can dedicate themselves exclusively to their tasks.
Finally, now that you know what the benefits are for employees who generate ROI for the company, it's time to put what you've learned into practice. Try to understand the needs of employees and keep in mind that benefits are not an expense, but an investment. Thus, you will have much more satisfied and productive employees on a daily basis!
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