Non-monetary or non-cash employee benefits refer to perks and rewards offered to employees in addition to their regular salary and wages. They can take various forms and are increasingly important to attracting and retaining talent in today's global war for talent.
Offering non-monetary benefits helps companies differentiate themselves from competitors and enhance their employer brand. It also shows that they care about the well-being and satisfaction of their employees beyond financial compensation.
In this Pacific Prime CXA article, we’ll look at the top 10 non-cash benefits from our perspective.
The Top 10 Non-cash Employee Benefits
Skillful implementation of these benefits can boost employee morale, productivity, and loyalty.
1. Health and Other Categories of Insurance
One of the most desirable employee benefits is health insurance. Offering health insurance to employees and their spouses has become an absolute must for attracting and retaining top talent for today's health-conscious generation.
Since many people have already secured health insurance for themselves and their families, an alternative way of offering health insurance as an employee benefit is paying the premiums (up to a limit that may depend on the employee’s rank) on their behalf.
Besides health insurance, other types of insurance, such as life and disability insurance, also provide protection and peace of mind to employees and their families. Insurance coverages are especially attractive to people who value financial security and peace of mind - exactly the sort of people who make responsible employees.
2. Flexible Working
Flexible working arrangements allow employees to work outside the traditional 9-to-5 office hours or from locations other than the office. This can include working from home, job sharing, compressed workweeks, and flexible schedules.
This will allow for a much better work-life balance. The added time flexibility is particularly valuable for employees who need to take care of young children and elderly parents. For employers, flexible working can result in lower turnover rates and, thus, recruitment costs.
Top talent commonly seeks more autonomy. While competitive salaries are important, top talent rarely base their employer selection solely on monetary considerations. Companies that go out of their way to make life more enjoyable for employees will also be building an attractive employer brand that appeals to top talent.
3. Extra Leave, Including Birthday Leave
Birthday leave is a small gesture that can go a long way in showing employees that their company values them as individuals and cares about their well-being beyond the workplace.
In addition to birthday leave, offering other forms of extra leave can have positive impacts on employee morale and loyalty. These can include additional vacation days, bereavement leave, personal days like wedding anniversaries, and parental leave.
By offering such leave, employers demonstrate that they are committed to their employees’ work-life balance and recognize the importance of rest and rejuvenation.
If you are worried that these extra leave might lead to lower productivity, you will be relieved to learn that a large-scale experiment in the UK in 2022 revealed that for most companies, even reducing the workweek by one day was not accompanied by lost productivity.
4. Extra Work Responsibility
Wait a minute! How can extra work count as an employee benefit? You may ask.
The truth is that many employees welcome the opportunity to take on additional tasks or responsibilities. For instance, when an employee is given the chance to work on projects or initiatives that align with their interests and career goals, this type of responsibility can provide them with a sense of purpose and fulfilment.
Another scenario is when the extra responsibility comes with a promotion or a salary increase. Here, the employee regards the extra responsibility as an appreciation for their previous work and a stepping stone to further career advancement.
5. Extra Personal Development Opportunities and Relevant Time Off
Employers that invest in their employees' education and professional development demonstrate a commitment to helping them achieve their career goals and remain competitive in today's job market.
Offering employees time off to pursue educational opportunities, such as attending training programs, and pursuing a degree or certification, can boost employee morale. Employees appreciate the time and resources that are provided to help them further their education and skills, and they often harbour a desire to give back to their employer.
This benefit can also result in a more skilled and knowledgeable workforce, improving the overall performance of the company. What’s more, personal development opportunities tend to attract talent who seek to do well - another key character trait in top employees.
6. Extra Time Off for Volunteer Work
Volunteer work enables employees to give back to their communities, and employers who help their employees give back are also giving back to their communities in a way.
This can do wonders to the company's reputation by demonstrating a commitment to corporate social responsibility and employee involvement in community initiatives. Employees are likely to feel a deeper connection to their company and feel prouder of it. Volunteering can reduce stress and create a sense of personal fulfilment as well.
7. Recognition from the Company and Peers
Acknowledging employees' hard work and contributions can provide them with validation and pride in their work, resulting in increased job satisfaction, motivation, and engagement.
Company recognition can be in the form of employee awards, public acknowledgment of accomplishments, bonuses or incentive programs, among others, while peer recognition can be as simple as a thank you or a pat on the back from colleagues. Both forms of recognition can contribute to a more positive and supportive workplace culture.
8. Fringe Benefits
Benefits such as gym memberships and movie tickets provide employees with opportunities to enjoy leisure activities outside of work, helping them relieve stress and recharge their batteries.
Gym memberships, in particular, encourage employees to maintain a healthy lifestyle and reduce the risk of chronic illness while providing a platform for social interaction with fellow employees.
However, care must be taken so that the employer is not seen micromanaging their employees’ personal lives. So, for example, seasonal tickets can be given rather than giving out theme park tickets for a specific date.
9. Free or Discounted Parking Spot
In many city centres, just because you can afford a parking spot doesn't mean you can have one, and offering a parking spot at no cost or a reduced rate can be the deal maker as far as attracting top talent is concerned.
For top talent, a free parking spot in the very building in which they work is often seen as the perk that says they have arrived - the thing that gives them bragging rights like nothing else.
10. What Your Employees Want for Employee Benefits
We know this sounds a little crazy, and it makes us look like we’re out of our minds. However, if implemented skillfully, this can be the ultimate employee benefit.
Asking employees what they want and letting them have it their way, if feasible, demonstrates a level of respect, trust, and appreciation that rarely exists in the world of work. Employees often feel more valued and empowered when they are given a say in the benefits they receive.
Furthermore, employees know their needs best, and being able to tailor their benefits package to their specific needs can go a long way toward maximising work-life balance.
One key to the successful implementation of this benefit is that there must be clear and reasonable rules relating to the proposal and negotiation process, and the employer has to reserve the right not to allow (even roll back) requests as long as valid reasons are given.
Contact Pacific Prime CXA Today!
In the present times, employees anticipate a company health insurance plan as a given. However, what can truly impact your workforce's well-being is an employee benefits plan. Moreover, a comprehensive employee benefits plan can aid in attracting and retaining employees amidst the ever-competitive talent market.
Pacific Prime CXA offers a range of services, from flexible benefits and employee wellness programs to diversity, equity, and inclusion (DEI) training and much more. Our team of experts can assist you in designing, implementing, administering, and optimising your employee benefits with the help of state-of-the-art technology.
Contact us now to learn more!