Traditionally, people used to only care about the salary when taking up a job. However, that has changed. Nowadays, people usually give more preference to employee benefits, than the salary. This is probably because the buying power of the people has been significantly reduced, which means people now need the benefits provided, as they can’t get everything they want or need with a salary.
The abundance of employee benefits creates a dilemma for most employers, as they don’t know which employee benefits to provide. However, considering today’s economy and future forecasts, employers should be more focused on financial employee benefits.
What are Financial Employee Benefits?
Financial employee benefits, in one way or another, provide financial relief. These benefits either provide extra money or are designed to pay off potential expenses, so you don’t have to worry about spending money.
With things like debt payments, refinance/mortgage payments, installments, and expensive medical coverage, it’s imperative to have benefits that can provide relief with some, if not all of the aforementioned things. This is because you can’t handle all the financial payments with your salary alone.
How to Streamline Financial Employee Benefits
Streamlining financial employee benefits can simply be done by offering a set of benefits that cover all financial bases. This means that you should offer a mix of benefits that appeal to all potential employees. You don’t necessarily need to offer all of them to every employee. You can provide them with an option to choose the ones they need the most.
The following financial employee benefits should be always provided so that both you and the employee are happy. You can add the plan to your compensation management framework.
Tuition fees have increased exponentially over the years, to the point where the common man simply cannot pay it in full. Since people are ‘forced’ to take out student loans, this has created a student loan debt crisis, with most college students graduating with significant debt.
To tackle the exorbitant fees, some companies offer tuition assistance, where they volunteer to pay some of the fees. Depending on the company, this can range between $1,000 to $15,000 annually.
However, some companies have rules regarding tuition assistance. For example, you may only be able to apply for tuition assistance if your degree compliments your job. Or, you may only apply for tuition assistance if you study at a specific college or university.
Student Loan Assistance
Almost all graduates are in debt when they graduate from college and start their jobs. People starting their careers need to start handling their expenses, their rent, and their debt payments, among other things.
To provide relief to employees in student debt, companies have started to offer student loan assistance. This works in two ways. The first is that companies connect employees with student loan experts who help them develop a strategy to pay back their loans. The second way is that some companies simply provide direct financial help to pay back the loan, however, it is usually capped either in the total amount or annually.
While today’s generation is known to have fewer children, they are also known to focus more on their careers. This means that the need for childcare has increased dramatically over the years. Unfortunately, childcare is very expensive and can take up a good amount of one’s salary.
This is why companies have started to offer free childcare or childcare discounts, so employees don’t have any additional expenses. This also ensures that parents don’t have to quit their jobs to take care of their children.
Co-Payments on Vehicles, Appliances, and Tech
A lot of people have a hard time paying for appliances, tech products, and vehicles, on top of other basic expenses. That is why they avoid buying cars because it can be difficult to keep up with the payments. That is why a lot of companies now offer co-payments for a lot of offerings.
The company either finances a part of the total amount or provides an interest-free loan on the spot, which can be repaid later, as the employee sees fit.
It can be hard for people, especially young people who are starting their careers, to handle their finances. People tend to make bad financial decisions, which can have major repercussions later in life.
That’s why some companies have started to offer free financial guidance to their employees. It usually includes helping the employee understand taxes, monthly budgets, loan processes, loan repayment strategies, as well as, how to invest properly.
The Bottom Line
If a company provides good employee benefits, there is a good chance that it has a high employee retention rate. If a company knows exactly what benefits to provide, to which employee, that company may even see zero turnovers.
If you opt for the aforementioned financial employee benefits, you can rest easy knowing your financial employee benefits are streamlined for the future.