Fringe benefits can increase employee productivity, but only if they are affordable and offer reasonable coverage. Health insurance, access to health clubs, and employee incentive programs can have a positive effect. Companies should offer benefits at all levels to keep productivity high, but basic rights like fair pay and respect are still crucial.
Many people believe that increasing fringe benefits, or benefits that aren’t mandatory, establishes loyalty and increases production among employees. Some argue that these beliefs are incorrect, but many others support them. It would be difficult to examine the effects of all possible fringe benefits, but looking at a few can give employers an idea of how to increase employee productivity by offering fringe benefits.
Some countries offer free healthcare, but in other countries, people have to buy insurance. Offering health insurance is a fringe benefit and its quality could be directly linked to employee productivity. In general, sick employees are not productive employees and any insurance offered to workers should be affordable and offer a reasonable amount of coverage. Affordability should also take into account aspects such as refunds and deductibles.
Higher copayments and deductibles reduce employer costs, but if they prevent lower-paying employees from seeking medical care or health care, the insurance doesn’t benefit sick people. Coverage should extend to the family, as workers’ productivity could also be affected if family members fall ill. When employees have affordable health care for themselves or family when needed, worker productivity can increase as a result of better physical health and as a result of corporate loyalty to receive this benefit.
Another health-related fringe benefit tied to increased employee productivity is access to health club memberships or on-site workout facilities. This and other health benefits can have a positive effect. There may be a direct correlation between physical health and the ability to work harder. Access to health clubs, nutritionists, weight loss programs, and the like can lead to healthier employees with more energy to work.
Certainly, employee productivity can increase with profit-driven fringe benefits. Earning stock or part of the profit in a company communicates to employees that the company grows or decreases with their efforts. This is not always the case, as the profits made can be relatively small. Other benefits that may prove more motivating are employee incentive programs, set up so that every employee has the opportunity to earn incentives, such as extra vacation days, gift cards, bonuses, etc., if they increase personal productivity.
Some fringe benefits are only available to executive employees, which can motivate those employees to work harder, but can also alienate a company’s lower-level employees. Things like access to vacation condos, the use of private jets, or corporate credit cards are generally attractive to executives. If benefits of this kind are not offered to others, or even scaled back, it can stir up discord. Companies should ensure that they offer benefits at all levels, rather than just the top, to keep employee productivity at its peak.
As fringe benefits as they may be when it comes to boosting employee productivity, they aren’t too helpful in bad working conditions. Employees deserve basic rights, such as being treated with respect by supervisors and being paid fairly for their work. All the perks in the world may not make up for persistently under-management skills or below-market salaries.
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