By Joana Lameira – Swood Team
Companies that are constantly evolving and who, like us, believe that “happy employees make happy customers,” are certainly looking for ways to install happiness in the workplace. Introducing a flexible extrasalary benefits program may be the missing piece of the puzzle on the human resources table! But what are flexible benefits? Why are they necessary? What are the advantages of implementing them?
Talent attraction, retention and engagement are concerns that have become more and more frequent within companies. One of the most assertive ways to overcome these challenges is, in fact, investing in human capital. In a survey conducted by the American Institute of CPAs, it was found that 80% of employees would be willing to keep a job with benefits, rather than accept a job with higher pay but no benefits.
It has been proven that organizations that value and invest in the well-being of their employees profit more. This is because when there is a concern with employee satisfaction, the employee will feel that their work is recognized and, therefore, they will perform their tasks with more motivation, increasing their productivity. Therefore, having motivated employees is the dream of any entrepreneur.
Nowadays, most companies offer a fixed benefits package. However, what often happens is that the extrasalary benefits do not correspond to what employees value. Among the main benefits offered today by companies in Portugal are: supplementary sick pay; medical plans; health, personal accident and life insurance; pension plans; extra vacation days; flexible working hours; a meal space and card; reimbursement of educational expenses and an automobile policy.
With the millennial generation entering the job market, which has a very different view regarding career prospects, work-life balance and quality of life, it is increasingly necessary for companies to adapt their strategies and offer benefits that are really valued. Modernity, innovation, and differentiation are aspects that this new generation seeks and prioritizes.
That said, the concept of flexible benefits has emerged, which is nothing more than the employees themselves, individually, choosing the benefits that best fit their lives, customizing their package according to their preferences and/or needs. So, instead of the company defining the extrasalary benefits, it is the employees who choose them, from a set of possibilities that the company offers, taking into account, for example, their lifestyle or the stage of life they are in.
This model seems to be good for both parties, employees and organizations. If, on the one hand, individuals are aware of the cost inherent to each benefit and therefore value their choices, on the other, the company can map the demand for certain benefits and therefore optimize spending, directing its budget to what is most “consumed” by employees.
The adoption of flexible benefits has numerous advantages:
- it enables employees to choose the benefits that best meet their needs;
- employees are satisfied with the benefits they receive, since they choose them themselves;
- employee satisfaction impacts employee motivation and, consequently, productivity;
- it can be very effective in the younger age group, between 20 and 30, who are often looking for a difference and value freedom of choice;
- it helps in attracting and retaining talent and increasing engagement;
- it allows the company to monitor employee choices and develop strategies to optimize benefit costs, for example by focusing its budget on those that are most in demand.
Implementing the flexible benefits model requires more planning by the human resources team. To be able to achieve all the above advantages, it is essential that the company is properly monitored.
Swood is the perfect aid! We aim to enable organizations to offer flexible benefits in an easy and innovative way. Through our platform associated with a prepaid card, companies define the monetary value and the benefits they want to offer, from a vast catalog of over 50 partners that includes, from more traditional services such as restaurants and gyms, to digital services like Spotify, Netflix, Dott, Bolt, Uber and more! The employees, in turn, revert the value provided in the benefits they want, in a completely personalized way.
In short, we help companies retain and attract talent, increase engagement, manage their human resources and, most importantly, have satisfied, motivated and happy employees!
Swood, make them smile.