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  • Writer's pictureMaryna Khomich

Is a Benefits Package Just a Salary Substitute or a Key to Keeping Employees Happy?

Let's talk about benefits packages. Companies often wonder if they're worth the investment in terms of time and money. The big question is: Are benefits just a sneaky way to save on salaries, or do they genuinely keep employees sticking around?


Benefits Package
Covered meals in office

First off, it's not as straightforward as it seems. Sure, leading companies are pouring more into benefits packages, but there's this idea that benefits are just a clever way to skimp on wages. Is it true that an employee with a decent salary can buy everything that a benefits package offers? Let's dive in.


In countries with complex tax systems, offering perks can be more cost-effective for companies than increasing salaries. It's all about what's valued in the region or by the company's staff. Think parking spaces or on-site meals. What's included in the benefits package often hinges on local laws and customs. For instance, in some places, health insurance is a big deal; in others, not so much, especially if it's provided by the government.


Take Google as an example. Their benefits reflect their corporate culture, which echoes the vibe of Stanford University's campus. We're talking about cool cafeterias, sports fields, and a buzzing routine. It's said that by making daily life easier for employees, they end up spending more time at work.


Some companies use benefits as a retention tool, particularly if they have a lot of employees with families. Offering child care perks, like insurance for kids or summer camp trips, can earn big points for loyalty and appreciation. When salaries aren't sky-high, a solid benefits package can be a compelling reason to stay. And sometimes, even if employees can afford these perks, the comfort and convenience of having them provided can be too good to leave.


Benefits packages aren't just about perks; they're part of a bigger business strategy. For example Rakuten, the Japanese e-commerce giant. They're big on diversity and support the most vulnerable in society, like people with disabilities, by making their offices super accessible. They also have baby care rooms and childcare areas, making life easier for working parents.


Then there's the social aspect. Companies like Facebook encourage employee interaction by funding leisure activities, as long as they involve team members from different departments hanging out together.


Sometimes, benefits are a loudspeaker for a company's brand in the job market, boosting its image and employee prestige. Think massive parties with celebrity guests, generous travel budgets, or unlimited vacation policies. These aren't just perks; they're statements.


In a nutshell, if they're well-planned and thoughtful, benefits can do more than just fill in for a bigger paycheck. They can take good care of employees and become a vital part of the company's culture and strategy.

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