Benefits management is the set of strategies to engage and motivate employees by granting advantages that go beyond work accidents with sick leave, and unpaid leave for personal matters. In the latter case, the firm may cut the employee’s salary. It is the process of managing the resources offered by the company.
Benefits are divided into two categories: mandatory and optional. Those required by law include, for example, vacation, thirteenth work accidents with sick leave, and unpaid leave for personal matters. In the latter case, the firm may cut the employee’s salary and overtime. The options can be:
- Health plan
- dental plan
- private pension
- Childcare assistance
- Fuel voucher and parking
- culture voucher
- Flexible schedule.
Importance of benefits management
Different studies prove the importance of benefits management in companies. One of the main advantages is the attraction and retention of talent through a good benefits plan.
According to a 2017 Society for Human Resource Management (SHRM) survey, the core reasons employees seek competitive jobs are higher pay (56%) and better benefits (29%).
This means, in practice, that companies that do not offer attractive benefits to employees are more likely to lose their best talent. The result of high levels of turnover, in turn, includes higher spending on hiring, firing, selection processes and training new employees.
Another important aspect of benefits management is that it increases productivity levels in the company. In financial terms, a 2017 PwC survey shows that employees concerned about their finances are nearly five times more likely to be distracted and have reduced productivity.
On the other hand, a company that values its employees through a benefit plan, sees its results rise. With the gain in productivity comes the optimization of financial results and customer satisfaction.
How to implement your benefits management
Below, discover five essential steps to put Benefits management into practice in your company:
1. Understand employee needs
To set up a benefit plan, the first step is to know the needs and preferences of employees. At this time, it is interesting to apply an opinion survey in order to obtain insights for management and be more assertive when offering benefits to employees.
2. Consider flexible benefits
Another strategy that can be put into practice is the offer of flexible benefits: benefit packages customized by employees according to their preferences. It is a way to satisfy all company employees, regardless of age, lifestyle and priorities.
3. Prioritize the granting of benefits
In order to offer a good benefit plan, it is essential that this is treated as a priority by management. After all, valuing professionals costs money. The key is to understand that the benefits of implementation turn employee benefits into an excellent investment .
4. Communicate the benefit plan
The next step is to inform employees of the benefit plan in a clear and transparent manner. For this, investing in assertive internal communication is essential. There are several channels through which this can be done, such as email, murals and intranet, for example.
5. Evaluate the results
In an article for Forbes magazine, Robert Cerone, founder and CEO of Cognos HR, highlights that benefits management is an ongoing process that can change as the company’s goals and strategy evolve.
“Make sure leadership is aligned with your benefits strategy, research your options well, and regularly evaluate your efforts to ensure they are effective,” recommends the author.
Benefits management in companies
Benefit management plan is a set of incentive measures used to motivate company employees . In addition to the basic benefits that are better known, such as medical assistance , today’s workers are looking for innovations.
Organizations must, therefore, offer more attractive work environments that encourage employees to be more productive, in addition to encouraging them to feel pleasure when working. Millennials want an organizational culture that is more creative and open to new ideas and trends .
When a company is able to efficiently manage benefits , it is able to retain talent on its team and, consequently, reduce its employees ‘ turnover rates .
For this to be possible, the organization needs to act proactively, researching the preference items of its professionals to put together a benefits package that is useful for everyone.
Following only the market standard, with mandatory benefits, can generate internal dissatisfaction , causing employees to start to look down on the organization. Therefore, it is essential to hear the opinion of your team before making a decision .
In this video, you will understand, with Gympass, how to make a benefits program!
The main benefits of benefit management
As you can see so far, benefits management works as a true corporate strategy. It is used to motivate employees to be more productive in their jobs .
However, its benefits don’t stop there. In addition to being beneficial to employees, they can help the business grow. Discover all the benefits provided by them:
1. Increase in productivity
First of all, we have to point out that benefits management is a real investment in human resources. All expenses made by the company bring a real return. More motivated and happy workers begin to perform their tasks more efficiently and thus bring greater profits to the business.
2. Talent retention
The second big advantage of benefits management is attracting and retaining talent for your team. Currently, it is increasingly difficult to find competent professionals in the market and attract them to your company.
Retaining talent reduces the need to spend on hiring, training and training new employees, in addition to representing an important competitive advantage.
Therefore, it is necessary to invest in innovative benefits programs, which work as true differentials for employees to want to stay at work.
3. Reduction of absenteeism and delays
When the environment is pleasant and employees are happy to perform their duties, delays and unexcused absences tend to be reduced. Employees become more concerned with the execution of their tasks and with the quality of their work.
This saves the organization from having to deal with high rates of absenteeism from its employees.
4. Optimization of the organizational climate
For the team to remain productive and integrated, it is necessary to provide a pleasant organizational climate . Its quality can interfere in employees’ decisions, as well as in their attitudes and mood. Therefore, benefits management must take into account the work environment.
Among the main impediments to an optimized organizational climate is employee dissatisfaction with work or the company. Unmotivated employees work less and get in the way of everyone around them.
Thus, with the right benefits, the company can keep its team satisfied and, consequently, provide a peaceful and productive organizational climate.
5. Conquer internal customers
Employees are the first customers a company must win. If they don’t buy into your brand idea, your business probably won’t go forward.
In this way, benefits management is essential to gain their support, leaving them satisfied with their work. Thus, they themselves become promoters of their company, disseminating information regarding the quality of the products sold.