Explore the tangible and intangible benefits HR can offer to increase employee engagement.
HR teams have a lot of responsibility when it comes to implementing a company's mission statement and making sure that the company culture supports that mission. But how can HR also support individual employees?
The answer is wide-ranging, but to simplify things, HR works with management to offer tangible and intangible benefits and incentives. Together, they use tools, resources, and strategies to develop and implement these benefits, not only rewarding employees, but also affecting the success of the organization as a whole.
Creating a culture of employee support will help your HR team affect a positive change in your employees' perception of the company, resulting in increased sales and productivity.
The importance of employee support for organizational success
Organizational success happens when your company continually reaches and exceeds set goals. Managers work directly with employees to ensure this is a reality, while HR works with management to drive consistency. They implement metrics, analyze feedback, and process audits to reveal both troublesome and advantageous trends.
The collaboration between management and HR attracts highly skilled talent, happier employees, and continual productivity. This results in more satisfied customers and increased sales.
The tangible benefits of HR support
Tangible benefits are ones that an employee can see and receive quickly.
Tangible benefits encourage employees to put forth a more significant effort at work. These incentives reward employees for a job well done, driving positive feelings about their job. This can lead to lower turnover rates. With the support of HR, tangible benefits such as promotions, employee benefits, and salary increments can promote happy, productive, and engaged employees.
Pay increases and bonuses
There's no mistaking the power of increased pay. But aside from leading to happier employees, compensating them for a job well done can:
Increase output
Save money on recruitment efforts
Reduce employee turnover rates
Incentives create a positive workplace where people feel valued and secure. This results in a lower turnover rate.
Attractive employee benefits packages
Top recruiters offer the best employee benefits. In a 2023 Capterra survey, 97% of HR leaders say that employee benefits are moderately to extremely important in retaining top talent. Every respondent told Capterra that benefits administration is a responsibility they manage as part of their job.*
But it's not just about cramming a new hire's packet with benefits, hoping they will stay; it's about which benefits you choose to include.
Benefits such as tuition reimbursement, stipends for travel or meals, and hybrid working opportunities are amongst the most sought after by top talent.
Providing these benefits solves the following issues:
Low instances of top talent in recruiting efforts
Employees who leave over the added expense of work-related travel
High turnover due to inflexible job roles
Where should HR come down on employee side gigs?
When putting together your employee guidelines, be sure to specify your company's stance on side gigs. With the cost of living increasing, many employees must work an additional job. Since working another full-time job is only possible for some people, side gigs are on the rise.
Unfortunately, according to another Capterra survey, 5% of employers take a negative stance on side gigs and 42% have a neutral stance. This makes employees feel stressed and uncertain about maintaining their lifestyle.
On the other hand, 54% of HR leaders welcome the idea and believe that flexibility allows employees to grow their skills and pursue outside interests.
The intangible benefits of HR support
Intangible benefits are just as significant as the benefits your employees can use. Amongst the top intangible benefits, opportunities for development, a positive work environment, and workplace compliance rank the highest.
Opportunities for development
Jobs that leave employees stagnating in a position can have higher turnover rates. HR can help employees advance in their job by offering upskill and reskill programs.
Upskill programs offer employees training to further develop their skills to do better in their current position. Businesses provide upskill programs on-premise or through distance learning platforms.
Reskill programs provide employees with new skills to transition into a new position, or to take on more responsibilities after a promotion.
Employers offer reskill programs in the form of on-the-job training or digital classes.
The benefits of upskill and reskill programs are:
Offers a cost-effective alternative to performance improvement plans and/or firing employees.
Highlights opportunities to place employees in positions they're more suitable for.
Gives employees a sense of satisfaction and personal growth.
Positive work environment
A positive work environment offers equal treatment regardless of gender, race, religion, or disability. Companies that understand this offer codes of conduct and training that ensure everyone is treated fairly.
Positive work environments can also help eliminate issues such as:
Unwanted media attention
Misconduct or fraud cases
Negative reviews on recruitment sites
Employees in a positive work environment flourish. They hit their goals quicker, keep operational costs low, and contribute to higher quarterly earnings.
Workplace compliance
Every day, millions of dollars are poured into accident claims, lost revenue from health and safety violations, and legal team fees to save companies from bad press. But all of these can be significantly reduced by having compliance policies that employees see and understand.
Compliant workplaces have:
Fewer accident claims
Lower insurance premiums
Lower instances of data security breaches
How to create a culture of employee support
To create an environment of employee support, begin by getting to know employees more personally. This goes beyond general small talk. Host social gatherings outside of work, such as a luncheon or a picnic.
Another way to facilitate a culture of employee support is to craft an employer value proposition (EVP). An EVP answers the question, “What’s in it for me?” To define what an employee will gain from your company, your EVP should pull from five key areas:
Work: Does this position offer a good work-life balance or time to pursue personal interests?
Rewards: Does it offer competitive pay and tangible/intangible benefits?
Organization: Define your marketplace position. Is the quality of your products or services leading the way? Is your company socially responsible?
People: What is camaraderie like in your company? What is the reputation of the senior leaders?
Opportunity: Are there any career advancement or development opportunities?
Check out these additional Capterra resources on HR strategies: