15 Low Cost or No Cost Employee Benefit Examples
Employee benefits play a crucial role in the success of an organization. They can improve job satisfaction, attract and retain talent, and boost employee well-being and morale. Even if an organization has a limited budget, there are many low-cost and no-cost benefits that can have a significant impact on employee happiness and productivity. This article outlines 15 such budget-friendly employee benefits.
Affordable Benefits That Employees Want
Many of today’s most popular benefits come at little to no cost for employers. As the race for talent remains tight, employers may consider offering the following affordable employee benefits to appeal to workers:
- Voluntary Benefits -
We've seen increasing interest in non-traditional employee-paid benefits from our clients and significant growth in employee participation in these benefits. Deductibles continue to grow and benefit expenses show no sign of slowing down. We believe employee-paid benefits serve a valuable role in an employee benefits package lineup. Accident insurance, critical illness insurance, and hospital indemnity insurance are especially valuable if you offer a high-deductible health plan as it can provide a layer of backup protection should an employee or their dependents experience one of these events that can come with a significant financial expense.
Other popular voluntary benefits include group pet insurance, group identity theft protection, and group pre-paid legal programs.
And as an employer, you don't have to contribute anything to the cost of these benefits. So you can make a valuable benefit available to your employees that's 100% paid for by them and there's a ton of great insurance carriers out there to purchase these insurance products from. There may even be some bundling discounts with your medical carrier available.
- Flexible work arrangements - Many of today’s workers desire flexible work hours or the option to work remotely. This flexibility can greatly improve work-life balance and reduce stress levels. Remember that flexible work arrangements require clear policies and communication to ensure accountability and consistency among workers.
- Flexible vacation policies - Instead of rigid vacation accrual systems, more employers are implementing unlimited or flexible vacation policies. Trusting employees to manage their time off can lead to greater autonomy and responsibility and help reduce burnout. However, flexible policies require trust and accountability from employees and may entail additional coordination to manage leave schedules.
- Wellness programs - Popular wellness initiatives include yoga classes, meditation sessions or health challenges. Promoting physical and mental well-being can lead to healthier, happier employees. Wellness programs are trending as a way to foster positive company culture, but it’s important to keep in mind that they often require commitment and resources for planning and implementation. Other Health and wellness resources - It may be beneficial to provide access to resources such as mental health hotlines, virtual counseling sessions, or fitness and meditation apps. Prioritizing employee well-being sends a clear message that their health is valued.
- Family-friendly policies - The path to and journey of parenthood is unique. Employers can offer attractive family-friendly policies, such as parental leave, flexible childcare arrangements, generous nursing breaks, or assistance with adoption expenses. Supporting employees in their family responsibilities can improve loyalty and morale.
- Professional development opportunities - Today’s workers value learning and development programs for their career growth. Investing in employee professional growth opportunities, such as online courses, workshops, or conferences, demonstrates a commitment to their long-term success.
- Employee recognition programs - Emotional salary, which comprises nonmonetary components contributing to an employee feeling adequately rewarded at work, contributes to higher levels of job satisfaction. Frequent recognition is one such factor of emotional salary that can help keep workers happy. When employees feel valued, recognized, and appreciated for their contributions, they are more likely to enjoy their work and find it fulfilling. Therefore, employers can establish a system for publicly acknowledging and rewarding outstanding performance. Recognition doesn’t always have to come with a monetary reward; a simple “thank you” can go a long way.
- Employee assistance programs (EAPs) - These programs can help employees save on healthcare expenses, provide tax benefits, and promote financial wellness. While such programs require administrative setup, the payoff can be worth it, as EAPs provide confidential support for employees dealing with personal or work-related issues.
- Flexible spending accounts (FSAs) or health savings accounts (HSAs) - Even if an organization can’t afford to provide comprehensive health care benefits, offering FSAs or HSAs allows employees to set aside pre-tax dollars for medical expenses, which may reduce their financial burden.
- Financial education workshops - More workers want guidance to increase their financial literacy. To meet this desire, employers can provide resources or workshops on personal finance management, budgeting, and retirement planning. Empowering employees with financial literacy can alleviate stress and improve overall well-being.
- Mentorship programs - Mentorship can facilitate knowledge transfer, boost career development and employee engagement, and strengthen the company’s talent pipeline. By offering mentoring resources or pairing junior employees with experienced mentors within the organization, a company can foster professional growth, skill development, and a sense of belonging. A mentorship program can easily be scaled based on employees, roles, and organization.
- Paid volunteer time - Employers can encourage community engagement by granting paid time off for employees to volunteer with charitable organizations. Giving back to the community fosters a sense of purpose and fulfillment and may even enhance team bonding.
- Casual dress code - Relaxing the dress code policy can make employees feel more comfortable and increase morale. This option could entail casual Fridays or more lax requirements during summer. The dress code policy should be clearly defined to avoid confusion.
- Summer hours - To help boost employee morale and satisfaction during the summer months, employers can offer summer hours, such as closing an hour or two early on Fridays. This perk demonstrates flexibility and trust from the employer and can ultimately help improve employees’ work-life balance during vacation season.
- Employee discount programs - Employers can offer discounts that appeal to workers’ interests and needs. This perk allows employees to save money on their everyday purchases, which can improve their financial literacy and boost company loyalty. Keep in mind that exclusive discounts hinge on partnerships and negotiation, and they may not be equally beneficial to all employees, depending on their interests and preferences.
Summary
Offering employee benefits doesn’t have to come with a hefty price tag. These low or no-cost benefits that workers value can enable employers to create a supportive and fulfilling work environment that, in turn, attracts and retains top talent. Investing in employee satisfaction not only boosts morale and productivity but also strengthens the overall success and reputation of the organization.
About Us
Connor & Gallagher OneSource (CGO) is a full-service, independent insurance broker since 1997. We've got a great team of people who love what they do and care about their clients. We have experts in each of the areas of employee benefits, business insurance, retirement plans, HR consulting, payroll, and HRIS support. We're standing by to help you and your organization with any of these services. Please email us at info@GoCGO.com if you have any questions or if you'd like to chat with one of our team members.
You can find more about our services here:
- Employee Benefits Broker
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- HR outsourcing, Payroll & HRIS
Disclaimer: This blog is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.
Source: Zywave
