How to Make Your Employees Happy with Benefits: A Guide for SMEs and Enterprises

Your company needs its employees to remain a well-oiled machine. Without your employees, the cogs and gears that make up your engine will not work in perfect sync. That’s why keeping employees satisfied and engaged is crucial in any organization’s success. Your employees are your best and most valuable assets, and you should take great care of them.

While there are a variety of ways to make employees happy, providing benefits can certainly boost their morale and overall satisfaction. A recent study by Jobstreet Philippines revealed that salary, company benefits, and incentives are the top drivers of employee satisfaction, with 64% of respondents claiming it to be the most important determinant.

Numerous studies have already proven how employee happiness influence employee engagement, talent retention, employee productivity, and ultimately, company profit and revenue.

Here are some more facts to convince you:

• Satisfied employees are five times more likely to stay with their company.
• Happy employees perform 1.5 times better. They are more accurate and have better analytical capabilities.
• Happy employees are more creative and provide better customer service.
• Happy employees are healthier, thus lowering absenteeism and tardiness rates.
• High employee engagement results in higher productivity and an increase in customer satisfaction.
• Low employee engagement results to low employee morale and high employee turnover.
   

Providing benefits and incentives to your employees contribute to their general happiness and professional satisfaction, thereby helping your organization achieve success.

Below, we’ve outlined how the various types of employee benefits can contribute to your employee’s job satisfaction.

1. Prioritize Work-Life Balance

91% of Filipino employees place high regard on work-life balance. It’s important for employers to implement a benefits strategy to help employees achieve a healthy work-life balance.

a. Vacation and Sick Leave

Getting time off from work is an important factor in achieving work-life balance, which is why most employers provide leave allowances.

With VL and SL benefits, employers demonstrate how they value employees’ lives outside of work. It’s also a great way to show your employees that you acknowledge the hard work they’re rendering and recognize their need to spend time with family and friends, or simply rest, relax, and rejuvenate.

While the law only stipulates that employers are required to provide employees five (5) days of paid Service Incentive Leave (SIL), most companies also provide Vacation Leave and Sick Leave. Furthermore, an employee shouldn’t feel compelled to come to work when they are sick.

Other paid leave benefits mandated by Philippine Labor Code are maternity benefit, paternity leave, and Solo Parenting Leave (SPL). Under R.A. 9710 or the Magna Carta of Women, women who underwent surgery due to gynecological disorders are also entitled to a two-month leave with full pay.

R.A. 9262 or the Anti-Violence Against Women and Their Children Act of 2004 allows victims of violence against women ten days of leave with full pay.

b. Flexible Working Conditions

Flexible working options are on the rise in the Philippines to address the traffic crisis in the metro. The House of Representatives just approved House Bill 6152 on August 27, 2017, which will allow employees to work four days a week at 12 hours a day. This compressed work week policy aims "to promote business competitiveness, work efficiency and labor productivity."

Technological advancements and connectivity improvement in the country now allows employees to maintain productivity even outside of the office. To improve your staff’s work-life balance, consider implementing flexible working hours, work-from-home policies, or remote working options.

Sometimes, a simple change of scenery will be helpful in improving your employee’s work-life balance. So, let them work from wherever they please from time to time.

2. Invest in a Comprehensive Employee Benefits Program

Investing in a comprehensive employee benefits program can help increase productivity, attract and retain the best talent, develop a more loyal workforce, and ensure that your employee’s financial welfare is protected.

a. Group Life Insurance

Death is a sensitive topic, and most Filipinos are hesitant to think about what can happen to their families in the event of their untimely demise.

While providing employee health benefits is a sound investment for employers, some companies go the extra mile by offering life insurance as well. Life insurance is important to employees, especially if they’re the bread winner of the family. Voluntary benefits like life insurance will empower employees and let them know that the company is concerned about the financial security.

Help your employees prepare for life uncertainties and make sure that their families are covered with a financial plan, so they can focus on excelling within the workplace and not worry about the future.

Life insurance covers any cause of death, whether due to illness or accidents, except suicide on the first year of coverage. It also provides additional benefits in case of untimely loss of life, dismemberment or disablement. In case of total and permanent disability, it advances the life insurance benefit through a monthly income.

Often, life insurance also comes with a fixed daily benefit to supplement income lost due to hospital confinement or accident. If your employee is diagnosed with any critical illness, it pay a pre-determined amount under the chosen policy. If found terminally ill, it advances a portion of the life insurance benefit.

b. Group Accident Insurance

The Philippines is the 4^th most accident and disaster prone country in the world. Furthermore, some jobs and industries are more prone to accidents in the workplace, and it’s important for employers to recognize the daily risk their employees take. However, even regular office or desk jobs pose some risks to an employee’s health, which is why you need to consider offering an accident insurance.

Your employees will appreciate the fact that you’re giving them an easy way to cover themselves and their families in case they get too sick or injured to work. A comprehensive accident insurance will protect employees and their dependents from sudden loss due to accidents.

An accident insurance includes accidental death, dismemberment, and disability benefit, which provides a benefit for death within 180 days from the date of an accident and pays a percentage of the coverage amount for disablement or dismemberment.

Through accident medical reimbursement, the insurance provider will reimburse actual medical expenses up to the amount stated in the benefit schedule for injuries commencing within 30 days from the date of the accident.

An accident insurance also comes with hospital income benefit, accident weekly income, and a special compassionate benefit.

c. Group Medical Insurance

Health and wellness is the number one concern of Filipino employees. According to the 2015 Asia Pacific Benefit Trends Survey, health benefits is the most important attraction and retention tool. A health benefit plan further demonstrates your concern about your employees’ health and well-being.

While all employees have PhilHealth benefits from the government and most private companies provide an HMO card, it may not be enough in the event of a serious or critical illness. When unexpected illnesses occur, employees find it difficult to pay for their hospital expenses.

As such, some private companies avail a group health insurance from insurance companies like BPI AIA for their employees. Such medical insurance covers in-patient care, out-patient care, and emergency care.

Providing your employees the benefit of a comprehensive health care coverage will help them focus on their work instead of worrying about how they can ensure their health and wellness.

3. Encourage Professional Growth

a. Training and Development

Training and development opportunities in the workplace drive employee engagement. According to recent studies, 76% of employees are looking for career growth, and 40% of employees with poor training leave their jobs within their first year in the company.

By investing in employee training and development resources, you’re helping employees become more skillful in their jobs, which leads to better work performance. Employees will also feel that their company realizes their worth, while trust and loyalty are fostered.

b. Team Building Events and Company Outings

Workplace loneliness can be an issue for employees, and may affect their daily productivity. Extracurricular company events and outings can address this. These events are important in building teamwork and camaraderie among employees, and should not be taken for granted.

Not only does it encourage professional growth, but team building events can also improve employee work-life balance. Don’t underestimate the power of play. You’ll be surprised how employees become better team players after a company outing.

4. Promote a Positive Work Culture and Environment

Your company culture says a lot about your organization. It reflects the overall goals, mission, and vision of the company.

A positive company culture boosts productivity, team morale, employee engagement, and employee satisfaction. 

a. Rewards and Recognition

A benefit strategy such as a rewards and recognition program will help improve company culture. However, a Gallup study shows that most employees cite lack of recognition as one of their top concerns. This contributes to employee dissatisfaction and may even prompt employees to look for opportunities elsewhere.

A rewards and recognition program will establish a solid work criteria and performance, giving your employees proper guidance and motivation in their work. It also ensures alignment of employee goals with your company’s mission and vision. Furthermore, rewards and recognition cultivates a culture of gratitude and feedback in the company.

b. Incentives

Incentives are a great way to motivate employees and push them to work harder and perform better. An incentive program will also show your employees that you appreciate their hard work, thereby improving company culture and employee satisfaction. Creating a culture of gratitude provides employees a reason to strive for success.

According to the 2015 Asia Pacific Employee Benefit Trends survey, Philippine companies spend more on employee benefits than other companies in the ASEAN (Association of Southeast Asian Nations). For most organizations, the main focus of their benefit strategies is the attraction and retention of key talents.

Most employees don’t see the value of the benefits being provided to them. Employers should then ensure that their benefits strategies are communicated properly for employees to understand and appreciate them.

Final Thoughts

There are many ways you can supplement salary with perks and benefits to keep employees happy and satisfied. Be as creative as your budget allows. Some companies offer travel incentives, gift certificates, more time off, and other perks.

At the end of the day, making employees feel that they are needed and appreciated is the biggest benefit you can give them. Show them that they’re part of the big picture, and help them make a difference through their work.

Think of your employees as your first-level customers, and create benefits programs that will ensure their happiness and satisfaction. After all, without your employees, your business will cease to function like the well-oiled machine that it is.