Benefits can improve employees’ mental health, financial stability, job satisfaction, productivity and more. Leaders can strategically invest in benefits to promote a supportive work environment focused on helping employees thrive. What are the benefits of offering employee benefits, and how do leaders choose the right options? 

The Benefits of Employee Benefits

Benefits can play a significant role in employee well-being, even in high-paying jobs. It’s important for leaders to remember that many employees have challenging circumstances outside the office that can impact their performance. This could include financial burdens like student debt or family responsibilities such as children to care for. 

These factors can strain employees’ paychecks, making it harder for them to get by both financially and emotionally. Benefits fill in the gaps so employees can thrive. 

Employees are aware of how helpful benefits are, too. The availability of benefits can determine what employees a hiring manager can attract. Surveys show nearly 80% of employees won’t take a job that doesn’t offer health insurance. 

Benefits give employees a safety net they can fall back on if something goes wrong, whether it’s a trip to the hospital or a simple sick day. Knowing this safety net is available can significantly reduce stress, a major contributor to employee burnout. Among employees who experience stress at work, 76% reported a reduction in productivity as a result. 

Business leaders can increase productivity, and by extension profits, by offering employee benefits. They can also attract a larger pool of job candidates, ensuring they hire the best employees possible. Benefits can even improve employee loyalty, which can also decrease stress by ensuring job stability. 

How to Choose the Right Benefits for Employees

How should leaders go about identifying the best benefits to offer their employees? A few are easy choices in any business, such as health insurance and a 401K. There are many other benefits leaders can offer, though, such as stock options or vacation stipends. 

It may be helpful to create a survey or chat with employees to get an idea of what unique needs and challenges they are facing. This information can form a starting point for selecting more niche benefits. 

For example, employees with six-figure incomes are more likely to have all of their basic needs met. So, these employees may appreciate benefits that help them grow and invest, rather than addressing material needs. A benefit like an employee stock option could be a good fit here. 

Some business leaders make the mistake of assuming employee stock ownership plans (ESOPs) allow employees to vote on all business decisions, which is not the case. Offering employees stock options can increase employee loyalty and morale since everyone has a stake in the company. 

Likewise, consider the unique working environment of a fully remote team of employees. Without being tied to an office, these employees have more ability to travel and see the world. However, travel can be expensive. 

Employees in this situation might appreciate more paid time off or a vacation stipend. Research shows that vacation time can improve productivity, retention and mental health while decreasing absenteeism. 

In situations where different groups of employees have significantly different needs, consider offering a few different but equivalent benefit options. For example, employees could choose between vision and dental insurance or get a stipend for either vacation or office tech upgrades. Flexibility can show that leaders recognize everyone’s differing circumstances. 

The Importance of Non-Material Benefits

Managers and business leaders need to keep in mind that material and financial benefits aren’t the only support employees need. Non-material benefits can make a big difference in employees’ well-being and job satisfaction. These intangible benefits can include supportive managers, a friendly workplace culture and even mental health support services. 

Research shows at least 15% of working-age adults are living with a mental disorder today. The actual percentage is likely even higher as a result of mental health challenges going unreported due to shame and stigma. Mental illness can have a serious impact on employees’ well-being and performance at work. 

Leaders have a responsibility to do what they can to support employees in preventing and resolving mental health challenges. This may include offering non-material benefits like accommodations for conditions like ADHD or OCD. It could also include allowing employees struggling with depression to take sick days off due to mental health issues. 

Businesses can invest in tools and technologies to support employees’ mental health, as well. For instance, GoFundMe added access to the Calm mental health app in its employee benefits package during the 2020 COVID-19 pandemic. Apps like this give employees tools and resources to reduce stress, anxiety and depression. 

At large businesses with more resources available, leaders may even consider hiring a professional therapist. Therapy can be too expensive for many people to afford or too difficult to find. Hiring a company therapist for employees to schedule appointments with free of charge can resolve this issue. 

Fostering Employee Wellness Through Benefits

Business leaders can use benefits to support employees and empower them to do their best work and live their best lives. Benefits can ease stress, reduce financial strain, improve mental health and boost workplace productivity. Offering benefits can even attract a larger pool of applicants to job openings. 

By investing in valuable benefits packages, leaders are investing in the well-being of their employees. As a result, they can foster a workplace culture that’s supportive, welcoming and set up for success.