Skilled workers move companies forward, but finding the right talent isn't that easy. And once employers have found them, the next challenge is to make sure the team is happy and doesn't switch to the competition. We're talking about the so-called “War for Talents.” The term was coined by author Steven Hankin and describes the increasing difficulty of finding suitable and qualified personnel. There is a battle between companies for the best talent.
The challenge for companies is therefore to attract and retain highly qualified employees in times of shortage of skilled workers. The best way to gain an advantage here is through so-called corporate benefits. In addition to basics such as appropriate salaries, flexible working models and appreciation, employee offers have become an integral part of it. Several surveys confirm that benefits offers an advantage in recruiting and strengthens identification with the company. A Salary Satisfaction Survey from Kununu confirmed this in 2022: The relationship between benefits and salary satisfaction among employees is very strong. Nouns benefits therefore have an effect on employee satisfaction.
What are corporate benefits?
Operational benefits are additional benefits and offers that the employer makes available to employees. Employee benefits are primarily intended to motivate and retain employees with the company. Financial and non-financial benefits of companies can be differentiated from one another.
Non-financial benefits can include flexible working models, such as remote work or flexibility in working hours. These should not be underestimated when choosing benefits, as this ensures a better work-life balance. There are many examples of financial benefits:
- travel allowance,
- occupational health promotion,
- continuing education,
- insurance,
- meal allowance,
- company car,
- employee discounts,
- and many more.
What benefits do corporate benefits create?
Relatively many job advertisements include benefits such as “free fruit” or “table tennis table.” Although this can increase the feel-good factor at work, it shouldn't be in the foreground, as it is now relatively normal and no one chooses a job because of it. That is why it is all the more important to find out which benefits are suitable for the team and really create added value. Suitable offers can offer a decisive advantage in recruiting and retain qualified employees in the company.
Finding good talent alone is a decisive factor in introducing corporate benefits in the company. But that is just one advantage of many: employee offers help to strengthen the company's employer brand and the mental health of employees. Well-thought-out benefits positively influence employee satisfaction, which leads to greater motivation and productivity. Flexible working time models help employees to better balance their private and professional lives. Since we are all in different situations and have different duties and needs, these should be as flexible as possible. Offers such as self-care days, sabbaticals or more vacation days also help to reduce sick days. Last but not least: save taxes. Corporate benefits have the advantage over salary increases that companies have to pay little or no taxes.
What types of employee offers are there?
As mentioned above, corporate benefits can be divided into financial and non-financial benefits. There are no limits when it comes to choosing — companies are now becoming more and more creative to set themselves apart from other employers. To give you an overview, we have compiled the most-used offers in a table. In the best practices (further down in the text), we also describe some exceptional offers that are individually tailored to employees.
This is just a small selection of potential benefits. According to several surveys, the most popular are flexible working models, continuing education and health measures.
When are additional services tax-free?
The tax-free payment in kind is a great way to offer employees added value and save money at the same time. Companies can provide their employees with a maximum of 600€ per year and a maximum of 50€ per month. Payment of the amount via limited vouchers or bank cards is a prerequisite. It is also possible to provide the team with tax-free benefits in kind 3 times a year (up to 60€). This can happen on birthdays, Christmas, or other occasions and is a great way to express appreciation. We have more information about this topic here provided.
Best practices for corporate benefits
Employee offers are valuable for everyone when they are well organized and cover all needs. When the team is satisfied and happy, they work more productively and more motivated. Employers should not underestimate this. In addition to good pay and appreciation, other factors also influence the increase in job satisfaction. However, corporate benefits can help create a work environment in which people enjoy working and feel completely comfortable.
It is not uncommon for companies to introduce benefits that are not very satisfactory for employees and bring little added value. It is therefore important to start with a strategy and find out what employees actually want. Wanting to sell a fruit basket as an exceptional benefit won't go down well. That is why we describe here a few steps that are necessary to get the most out of employee offers and thus create real added value. It doesn't matter whether employers want to introduce new corporate benefits or revise existing ones. Once introduced, the offer should also be reviewed regularly - because wishes and requirements change. Corporate benefits are usually a matter for the HR team or in the area of office management. Once it has been clarified which budget is available, you can start planning:
1. Find out what employees truly Woolen
In theory, it is clear to all of us that we should introduce offers that employees really want. In reality, however, there is a gap between what employers offer and what employees want. As the first step of the strategy, we must therefore find out what the wishes and needs of employees have. Several surveys have addressed this topic and from this we can easily see which benefits are best received. But the most important step, and actually the easiest, is to ask employees! It's actually logical, but it's not always implemented in practice. An internal survey is quick to create, takes little time and provides the best results. External surveys can of course help to get an overview, but they shouldn't be the only source.
2. Clarify which goals are to be achieved
In principle, there are two phases that can influence companies with corporate benefits: Recruiting, i.e. finding good talent and creating an incentive as to exactly why they should switch to this company; and employee retention, existing talent should be retained and fluctuation reduced. The more comfortable employees feel, the longer they will stay with the company. The benefits can also be divided into these two phases, even though they largely overlap. Nevertheless, it is important to think in advance about what you want to achieve and to incorporate the status quo. Employees who leave the company can be asked why they decided to change, what appeals to them about the new challenge and what they missed about the company they are leaving.
3. Create a corporate benefit package that brings added value to everyone
The fact that all employees have different needs and ideas of a perfect working environment must be considered in particular when preparing a package. When the individual elements of employee offers are worked out, employers should place particular emphasis on satisfying the entire team. It looks different for every benefit. Let's say we opt for a flexible work model or expand the rules for it. Since our working world has changed rapidly in recent months and employees want more and more flexibility, this is an excellent example of practice. However, if this offer is too limited, it does not offer the benefits that should arise from it. When we think about the place of work and develop a hybrid work strategy, in the best case scenario, all options should be available and employees should have the power to decide: Regardless of whether they want to work from home, in the office or in third locations such as coworking spaces. Of course, there can be agreements that the team meets regularly on site for specific meetings. But if we draw the rules too tight and dictate that 3 days in the office is mandatory, we again fail to meet all needs. There are still employees who love coming to the office (almost) every day and need social interaction to stay motivated. But there are also enough more introverted people who cannot concentrate optimally when there are too many stimuli in the environment. If employers let employees decide where to work most productively, they will work from the location that is best for them. Of course, we must not forget the current situation in life either: Employees who have children or care for relatives can reconcile this much better if they can arrange their place of work flexibly and can also pick up the children spontaneously from school. This should be considered in every aspect of employee offers. Existing offers should be reconsidered and possibly expanded.
4. Find a good mix of all categories
The categories of corporate benefits listed above can be added and then compared with the results of the employee survey. In order to find a good mix, all areas should be covered as far as possible. That is great if a company offers many occupational health promotion measures, but if there are no flexible elements, this can demotivate employees. The prepared table can be seen as a kit with which employers build their individual concept so that all employees are satisfied. It often happens that not all benefits can be extended to all jobs. We can't perform every role working from home, but that doesn't mean that these employees can't get flexible working hours.
5. Get creative and offer exceptional corporate benefits
To gain a competitive advantage in the battle for the best talent, it pays to get creative. The rule is: the more flexible and individual the benefits, the more satisfaction among the workforce. When employees have the choice between two companies that both offer remote work, but the first company imposes numerous restrictions (e.g. mandatory attendance 2 days a week), it is clear what the decision will be. In practice, when companies use a budget for fitness activities, this often means that a subsidy is paid out for the fitness center. The more flexible alternative is a budget per month, which is available for all fitness and wellness activities. Because not everyone likes going to the fitness center. We now read in every second job posting that flexible working is a reality. In practice, however, this is often accompanied by restrictions. When employers decide to let employees choose completely freely, that is really an exceptional benefit and not just a means of generating more applications.
Corporate benefits in practice
Tax-free payment in kind of Regional Hero
Die B-Card in Berlin And the Minga Card in Munich Regional Hero Card cards are regional benefits cards. They are perfect for all companies that want to offer an individual corporate benefit. This makes it easy to optimize employees' net pay — at the same time, employers create added value for the local economy. A monthly credit can be easily provided and redeemed at all credit card acceptance points in the selected region. There is also access to regional online offers and special local favorite places. Everyone wants to find what they are looking for at the favorite places: They include various regional shops, such as restaurants, wellness activities, fashion, living, cosmetics, sports and much more.
Regus Coworking Membership
Regus Helps companies optimize hybrid work. With a coworking membership, employers offer their employees even more flexibility. In addition to working from home or working in the office, the team is provided with a monthly budget for flexible work. This is the ideal addition to existing offices and opens up new working models: Employees who have a long commute or too little space for a workplace in the home can easily book a desk nearby. In addition, a wide variety of meeting rooms can be booked. Companies find inspiring work environments, especially for strategy meetings or creative workshops. In the War for Talents, membership can bring another advantage: remote specialists can be hired and although employers do not have their own office in this city, a workplace can be provided.
Fitness and Wellbeing from Urban Sports Club
Urban Sports Club Is just as interesting for private individuals as it is for employers. With over 7,000 partner locations, membership provides access to Germany's largest partner community. The offer is very flexible: From live courses, on-demand videos to master classes, employees can let off steam there. In addition to sports activities, there is also a selection of wellness offers, so there is something for everyone.
These were three examples out of hundreds from practice. What they all have in common is flexibility and individuality. All employees find what they are looking for in the offers.
Conclusion
Employee benefits are a useful and effective measure to increase satisfaction and express appreciation. However, the best employee offers are useless if they are not tailored to all employee needs. Of course, subsidies for the fitness center are great, but employees who prefer to do sports in nature and have more frequent brunches at their favorite café are left out. The key to balanced benefits is obvious: The offers should include all employees and be selected as individually as possible.
