Three characteristics make for more effective benefits, says Australian academic citing new research
As demand for better benefits soar across Australia, a researcher has outlined three characteristics that would make workplace perks more effective for both employers and employees.
You might think the larger the package, the happier the worker – but this isn't necessarily the case, Kim Sunghoon Kim, an Associate Professor of Work and Organisational Studies at the University of Sydney Business School, said in an article for The Conversation.
There is no clear evidence employees' satisfaction is highly correlated with the size of the benefits package.
Through research in collaboration with Patrick Wright of the University of South Carolina, Kim cited the three criteria as the following:
Exceeds expectations
Meets workers' needs
Reflects the company's unique capabilities
A good workplace benefit is one that goes beyond what's required by regulations and cultural norms, according to Kim. He said discretionary perks that organisations voluntarily provide are perceived by employees as a sign of their employer's goodwill.
This is because benefits mandated by laws and norms won't give much reason for employees to feel grateful to an employer.
Using superannuation benefits as an example, Kim said a company should consider making a more generous contribution above the legislated rate if they want to attract and engage talent.
Meets workers' needs
The second standard for a good benefit is when workers consider them valuable, according to Kim, who noted the varying demands from employees when it comes to benefits.
Younger workers will more likely seek career enhancement, he said while older worker value more health-related and retirement savings benefits.
The final criterion for a good workplace perk is when it is specific to the company.
If an employee can easily receive the same or similar benefits by moving to another employer, it may not work as a retention strategy, the associate professor said. Firm-specific benefits are particularly effective when they are based on a company's unique resources and capabilities.
According to Kim, these benefits will need to be communicated well so employees can take advantage of them.
For perks and benefits to attract top staff and engender workplace loyalty, employees need to feel they are being treated fairly by having equal access to information about what's available and to the benefits themselves, Kim said.
https://www.hcamag.com/au/specialisation/benefits/what-makes-for-a-good-employee-benefit/491377
