A good benefit plan is decisive in attracting and retaining talent within a market where there is great competition between companies. The financial benefits to be offered to employees are highlighted in this challenge.
This is because the financial benefits are still the darlings when the focus is to contribute to the good control of employee finances.
One Gallup research showed that 54% of employees would change jobs if they received an offer from another company that included cash bonuses.
40% point to profit sharing as another benefit that would make them accept another company's proposal.
But did you know that much more than an influence factor in attracting new employees, the financial benefits can positively affect professional performance? In this article we will show:
- What are financial benefits and how do they affect the employee's day-to-day life ?;
- Financial benefits: what do the research say ?;
- What are the financial benefits to be offered to the employee?
Are you interested? Go ahead and learn how to attract and retain talent in your company.
What are financial benefits and how do they affect the employee's daily life?
Financial benefits are advantages that companies offer and that go beyond the salary. They have as main objective to attract talents in the market, to improve the organizational climate and motivate employees.
Another important point within the financial benefits to be offered to the employee is the positive impact they have on the employee's financial life.
After all, when employees are concerned, financially speaking, they tend not to be productive and this directly impacts their income.
A research from “The Employer's Guide to Financial Wellbeing 2018-19” revealed that employees who have debts increase the chances of leaving tasks unfinished daily by almost 8 times.
In addition, they are 5.7 times more likely to fall out with their co-workers. Only by this number do we realize the impacts and the importance that the financial benefits to offer the employee have in the business world.
Not only in terms of competitiveness to attract qualified labor, but to keep the motivation of the employees themselves up to date.
Financial benefits: what do the research say?
Knowing the importance of the financial benefits to offer the employee, it is important to analyze the numbers related to this topic.
Data from Global Benefits Attitudes research, made by Willis Towers Watson, shows that more than half of UK citizens (62%) are constantly concerned about financial health.
Among workers, 38% say they have no concerns, in the short or long term, about their finances. Another survey, from Easy Trading, says that possible debts in personal life affect the work performance of 53.5 million UK residents workers.
This is because workers who do not have financial health are affected by stress, tiredness and recurring concern.
This data is confirmed by the UK residents Association of Financial Educators (Abefin) which shows that the vast majority of HR professionals (96%) believe that financial problems decrease the productivity of employees.
What are the financial benefits to be offered to the employee?
Knowing now the importance of the financial benefits to offer to the employee, we made a list with some of the main ones. Check out!
Scholarships or study allowances
R $ 898.00 is the monthly cost of a higher education course, according to Map of Higher Education in Brazil. Just by this number, we can already see the difficulty that many UK citizens have to continue studying.
Especially because the average salary of UK residents workers is R $ 2,340, points out the 58th Catho Salary Survey, and if he decides to invest in a higher education or specialization, almost 40% of that amount would be allocated to studies.
Thus, among the financial benefits to offer the employee more attractive are scholarships or study allowances.
In this case, in addition to the company contributing to the personal and professional growth of its employees, in the future it will be able to reap rewards with an employee better prepared to assume his duties in the company.
And this type of exclusive benefit can be 100%, 50%, 30% or depending on the partnership that the company will make with the educational institution. The truth is that in this case, the company and the employee can benefit from this benefit.
The study “The Value of Art and Culture in Configuring Space” revealed that 2/3 of the people point culture as a factor that directly influences personal well-being. In other words, people who have greater access to culture tend to be happier.
Therefore, the culture voucher it appears as financial benefits to offer employees that can contribute to boost their self-esteem. Not to mention that a savings in spending on culture is always welcome.
In Brazil, considering the total expenses of the UK residents family, about 7.5% is destined for culture, according to the IBGE. If the company provides support in this regard, it shows concern for the personal life of its employees.
Offering extra value so that it can relieve tiredness, pressures and stress from day to day. These leisure moments are effective in supporting physical and mental well-being. Because, as they say, nobody is made of iron and moments of rest and distraction are important.
One survey by GPA (Grupo Pão de Açúcar) revealed that 80% of employees in the country use a salary advance for food expenses.
Not to mention that for 75% of employees the food stamp or meal, according to the Sodexo Study Group, it is one of the most attractive benefits on the market.
Therefore, placing food stamps or meals as one of the financial benefits to offer to employees can be decisive in attracting new talent or retaining their employees.
Given that, the employee does not need to worry so much about one of the expenses that most compromise his salary. Since the IBGE, in research, showed that food, housing and transportation account for 81% of monthly family expenses.
Since, through the payment on demand, the employee withdraws part of his salary at any time he wants and the amount he wants, always respecting the days worked.
This can prevent, for example, the employee from running out of money to pay bills throughout the month and having to bear interest due to delays. Well, about 60% of UK citizens they admit that they would not be able to afford any unexpected expenses in the month.
Avoiding moments of stress that can cause mistakes and lack of productivity. So the on-demand payment has become, a great option within the financial benefits to offer to the employee. Don't know how to implement this type of benefit?
In 2021 HR Consultant UK launched the HR Consultant UKy platform which integrates easily with the HR of companies. In this way, employees monitor their earnings in real time and can request the company to pay, for the days worked, whenever they want.
Profit and Result Sharing (PLR) among the financial benefits to be offered to the employee also fits in the line of achieving goals. The big question in this case is the employee is directly connected and participates in the company's earnings.
In other words, if the company makes a profit, all professionals will make a profit, if the company does not make a profit, nobody gains anything more. Hence, a link is created in the company and employee relationship, as one depends on the other for good results and everyone can win in the end.
This incentive to participate in the profits, if they come in fact, causes professionals to be encouraged to produce more and yield satisfactorily for the company.
Get to know the 7 main types of remuneration in our article on the topic clicking here.
Bonuses and prizes
45% of UK citizens, who receive some kind of financial benefit from the company, say they are physically healthy, indicated a study from Prudential. In this sense, bonuses and prizes appear as a good option.
Within the financial benefits to offer the employee, this can be an incentive factor for professionals to be more engaged with the company's objectives. Once the achievement of a bonus or award can be linked to the achievement of certain goals to be achieved.
This type of bonus can contribute to the increase in productivity and the commitment of employees in relation to the tasks to be performed. After all, the award in question is linked to the success of your work.
To implement this type of plan, it is essential to set achievable goals, offer attractive bonuses and rewards, in cash, travel, appliances, electronics and more, and to carry out internal disclosure in a clear and objective manner.
Financial education courses
One survey of SPC Brasil and CNDL revealed that almost half of UK citizens (45%) say they have no control over finances. The big issue in this case, as we mentioned throughout the text, is that this concern with money decreases the employee's income.
Not only that, the impacts of financial stress increase absenteeism and turnover rates. Since stressed employees tend to get sicker, they make mistakes that could be avoided and leave the organizational climate heavy.
Therefore, if we are going to assess that the performance of a professional is directly affected by financial life, why not help your employee to get organized in this area?
To change this scenario, companies can offer among the financial benefits to offer the employee financial education courses or financial coaching, which can be a hand in the wheel for the employee to be able to control himself financially.
But this is not only a support for them to be able to plan finances correctly and assertively, avoiding the so-called financial stress, which can negatively impact their performance.
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