Employee benefits are common in many companies. Employers provide employees with additional benefits. In addition to salary, these benefits are a decisive factor for attracting and retaining employees. Recruiting has changed significantly in recent months and companies must take action to attract the best talent. Due to the shortage of skilled workers, digitalization and other factors, our working world has changed. Gen Z in particular has different expectations of their employer and companies must internalize them in order to win over this generation. But there has also been a change among other generations. Employers must now impress themselves with a strong employer brand, because a good salary and a basket of fruit in the kitchen are no longer enough to attract and retain employees.
What is employer branding?
The competition for the best talent (the so-called “War for Talents”) encourages companies to promote their brand as employers. Employer branding describes efforts to present itself as an attractive employer on the market. For this purpose, strategies and measures are being developed to draw the attention of potential employees to the employer brand and to position themselves favorably. Employer branding, however, does not just apply to recruiting. Once employees have been hired, they must also be retained. Identification with the company's values and culture should be strengthened.
What are the benefits of employer branding?
The employer branding measures are intended to ensure that skilled workers choose the employer and not the competition. In addition, high fluctuation should be avoided. Objectives include:
- The conviction of potential applicants,
- positioning as an attractive employer on the market,
- establishing a positive employer brand,
- authentic communication,
- employee retention.
If companies succeed in developing and implementing a suitable strategy, they benefit from faster application processes, an increase in applications and the strengthening of the company's profitability.
What do corporate benefits have to do with employer branding?
Employee benefits are part of the employer branding strategy. They alone are not enough in the fight for the best talent. However, they can provide a huge advantage and should not be underestimated. Nowadays, employee benefits are much more than the provision of a company car or discounts in the canteen. When implemented correctly, they offer employees real added value and help create a good work-life balance.
Employee benefits are nothing new, but they should still be reviewed as part of the employer branding strategy. While it is well-intentioned to simply provide many benefits, they really have to be accepted by employees and create added value. Many companies are still unable to do this — several surveys confirm that employees' ideas of good corporate benefits differ from what companies actually offer. Our working world is constantly changing and this is exactly where employers must start and question the status quo. What worked five years ago may work less today.
Which employee benefits really add value?
Regardless of whether employers want to introduce new corporate benefits or want to revise existing offers: All benefits should also offer added value to all employees! To illustrate this in practice, we compared frequently used offers, which usually only give a portion of employees an advantage, with individual benefits from which everyone benefits.
Flexible working models:
Most employees want more flexibility in their day-to-day work. Most job advertisements also offer just that: flexible working hours and the option to work from home. However, at the latest during the job interview, it often turns out that there are core working hours and that attendance at the office is mandatory for three days. If the work requires this, that is of course absolutely fine - but it should also be communicated accordingly. Many jobs can now be carried out remotely, but employers are only introducing these models to a limited extent as there is still a great deal of uncertainty here.
The alternative: Real flexibility without rigid rules. Employees are all in different life situations who need other forms of flexibility. It can be important for parents to quickly pick up the child from school. Introverted employees may work most productively when they are not exposed to as many of the stimuli that open-plan offices often entail. Of course, it makes sense to meet in the office from time to time, but compulsory attendance on certain days deprives employees of the added value of flexible working models.
Subsidy for fitness classes:
Yoga classes in the office or discounted fitness center subscriptions are nice-to-have, but not everyone loves sport or find the right offers for themselves in the limited selection. There are also employees who simply go out into nature or jog regularly. Employers should also take these circumstances into account.
The alternative: A flexible budget that can be used for multiple activities. Here, too, the offer should be as individual as possible. Companies can set aside a monthly budget for many types of recreation and compensation: fitness, wellness, culture, etc.
Meal allowance:
Companies that have a canteen often offer discounts. Alternatively, there is a meal allowance that can be used. But even this concept is now too short-sighted and does not include everyone. Employees who primarily work from home do not benefit from this benefit. There are also people who prefer to bring their own food from home or do not want to eat in the canteen due to the limited selection.
The alternative: A monthly budget that can be used not only in the canteen or within walking distance of the office. Employees who work part time should also benefit from the offer, even if they don't have lunch at the office. With our B-Card in Berlin or the Minga Card In Munich, employers can offer their employees a regional benefits card that also supports the regional economy. The budget can be used in many favorite places spread across the city.
When introducing or restructuring corporate benefits, it is particularly important to include employer branding goals and to individually design the offers. Only when you take a holistic view of the needs of employees and can offer real added value do you gain an advantage as a company and strengthen your employer brand.
