How do employee benefits reflect your company culture?
Recently, a New Zealand firm trialed a four-day working week and called it an ‘unmitigated success’, stirring up heated discussions and envy over the Internet. In face of the increasingly competitive talent market, it seems that other than the paycheck, employee benefits package is getting more important in recruiting and retaining employees. As such, the management and HRs of many companies are racking their brains to develop enticing perks. This week, Pacific Prime is focusing on how companies can take advantage of their employee benefits package to better reflect their company culture.
What exactly is company culture?
Company culture seems to be the buzzword nowadays, but what it really means is a personality of the company. Good company culture should be genuine and be able to withstand time and changes. There are four main types of company cultures:
- Clan Culture: The organization is held together by loyalty and tradition, and the main values are rooted in teamwork, communication and consensus.
- Adhocracy Culture: The organization promotes individual initiative and freedom, with the goal of finding creative solutions in a dynamic working environment.
- Market Culture: Built upon the dynamics of competition and achieving concrete results, this sort of organization is united by a common goal to succeed and beat all rivals.
- Hierarchy Culture: Founded on structure and control, this organization has a formal work environment, with strict institutional procedures in place for guidance.
Why does employee benefits package matter?
Employee benefit package now more often is more than merely a health insurance or a well-being program. Properly designed employee benefit packages can bring a variety of advantages to the company, including:
Employees tend to engage in fewer non-work activities and have a higher motivation for work.
With a stronger sense of belonging to the company, employees have a better retention and engagement rate, which saves the company the costs and efforts for recruitment.
Better mental and physical health
Employees gain more satisfaction from their work and have a better life quality, which leads to better mental and physical wellness.
Better image and reputation
A proper employee benefits package can build a better image and reputation for your company, and attract talents who share the same core value as the company.
Benefits package and company culture
HRs may have a hard time securing the right employee benefits to align with their company culture. Below we have summarized a list of qualities to match with the company culture for the effective perks selection. According to our expertise, employee benefits should be:
Employee benefits package should not be just an empty slogan or an afterthought. Instead, it should be a way to show the appreciation and care of the management. For example, there’s no point in placing a ping pong table and a massage chair under the pretense of work-life balance, while employees are actually suffering from long working hours and no-paid overtime. It is also important for the management to take the lead to walk the talk, so that others can follow.
Employee benefits may vary with different company missions or core values to reflect their natures. Below are some perk examples according to the four types of company culture mentioned previously:
- Clan Culture: A company with a clan culture may create a family-like work environment by offering catered lunch and unlimited paid time-off to employees.
- Adhocracy Culture: A company with an adhocracy culture may allow a certain amount of work time for employees to try out alternative side projects to boost creativity.
- Market Culture: A company with a market culture may provide benefits according to the experience and performance of the employees.
- Hierarchy Culture: A company with a hierarchy culture may offer standardized benefits but with a wider coverage to align with the formal work environment.
It is also worth noting that there are company cultures that fall out of these four categories. One example might be a company emphasizing corporate responsibility by promoting company-paid time for their employers so they can volunteer in causes they care about.
Are the employee benefits you provide actually useful to most of the employees? For example, parental leaves or fertility benefits may not be that necessary for startups full of young people. Likewise, student loan assistance is not that practical for elderly home employees. A good practice is to obtain feedback on the benefits program from your employees for regular review. You can find out more about employee benefits engagement solutions in one of our previous features.
Start improving your benefits package
Clearly, there is a lot to consider when building a competitive employee benefits package that aligns with a company culture. Before you start developing perks around culture, make sure to provide basic benefits such as medical, dental and vision coverage, as these are now considered a standard around the world. Feel free also to download our guide to structuring employee benefits package for more in-depth advice.
With over 18 years of experience and in-depth knowledge of the insurance industry, our corporate team is on hands to provide professional advice and help you select the best-fitting solutions for your company and staff. Contact us today to get a free quote and answer all your questions!