Benefit — what is it? Definition and meaning

Benefit, or non-wage benefits, are additional benefits offered to employees by the employer, beyond the standard salary. They can take a variety of forms, such as private medical care, sports passes, life insurance or flexible working hours. Today, employee benefits are an important element of the human resources management strategy, influencing employee satisfaction, motivation and loyalty, as confirmed by numerous market studies.

Evolution of benefits in Poland

The history of non-wage benefits in Poland dates back to the post-war years, when state-owned enterprises offered employees additional benefits, such as access to holiday resorts or factory kindergartens. With the economic transformation and the development of the private sector, the offer of the most popular benefits has expanded significantly, including life insurance and flexible working hours. Today, in the age of globalization, companies are trying to adapt their benefits packages to individual needs, making the best benefits a key tool in the fight for talent.

Why are non-wage benefits important?

The best benefits play a key role in building employee engagement and loyalty. Offering attractive benefits fosters long-term relationships with employees, which directly translates into a reduction in the cost of recruiting and implementing new people. In addition, the types of employee benefits have a direct impact on increasing the involvement of employees in the projects implemented by the company. Employees, feeling that the organization cares about their well-being and needs, are more likely to devote their time and energy to the benefit of the company.

Types of non-wage benefits

Modern companies offer a wide range of employee benefits, which can be divided into several categories:

1. Health benefits:

• Private medical care: Provides workers and their families with quick access to specialist doctors and diagnostic tests, which is especially appreciated in the context of long queues in the public health service.

• Health prevention programs: Initiatives that promote healthy lifestyles, such as workshops on healthy eating, preventive examinations or vaccinations.

2. Sports and recreational benefits:

• Sports passes: They allow the use of a wide range of sports facilities, such as gyms, swimming pools or fitness clubs, which supports the physical activity and health of employees.

• Co-financing of sports activities: Financial support for activities such as yoga, dance or team sports.

3. Financial benefits:

• Life insurance: Additional financial security for the employee and his family in case of unforeseen events.

• Retirement programs: Employer co-financing of additional pension schemes, allowing employees to accumulate more savings for the future.

4. Personal and professional development:

• Trainings and courses: Opportunity to improve professional qualifications through participation in various trainings, courses or conferences.

• Subsidies for studies: Financial support for higher education, including postgraduate studies or MBA.

5. Work-life balance:

• Flexible working time: Flexible working hours: Allows you to adapt working hours to individual needs, which is one of the best benefits to support work-life balance.

• Remote work: The option to perform professional duties from anywhere, which has gained importance especially in the era of the COVID-19 pandemic.

6. Additional benefits:

• Vouchers and gift cards: Shopping vouchers, tickets to the cinema or theater, which employees can use according to their preferences.

• Wellbeing programs: Initiatives that support the mental and physical health of employees, such as mindfulness sessions, anti-stress workshops or access to meditation applications.

The most popular benefits in Poland

In Poland, there is a growing popularity of certain non-wage benefits. According to research, the benefits most desired by employees include:

The most popular benefits in Poland

• Private medical care 81% of employees indicate this service as the most important, which is due to the growing expectations for quick and comfortable access to medical services.

• Sports passes — 69% of respondents value the opportunity to take care of their physical condition through subsidized sports activities.

• Flexible working time 63% of employees see flexibility as a key benefit, especially in the context of work-life balance.

• Possibility of remote work 57% of people expect remote work from their employers, which has become standard in many industries after the pandemic.

• Co-financing of trainings and courses — 52% of employees are looking for opportunities to develop and improve their professional qualifications.

According to Randstad's “Employer Brand Research 2023” report, 76% of Poles consider benefits to be an important factor when choosing an employer, and 48% of employees declare that the lack of attractive benefits may prompt them to change jobs.

Benefits of implementing benefits in the company

The implementation of benefits in an organization brings a number of advantages:

• Greater employee engagement People who receive additional benefits are more motivated to work and loyal to the company.

• Decrease in rotation — an attractive package of benefits can limit employees' desire to change jobs.

• Building the image of the employer — companies offering rich non-wage benefits are perceived as more friendly and modern.

• Better condition and well-being of the team — benefits related to health and sports support the well-being of employees, which affects their efficiency and job satisfaction.

• Attracting talent — competitive non-wage benefits are an asset in the fight for the best specialists on the labor market.

According to PwC data, companies that offer attractive benefits have 23% lower employee turnover compared to companies that limit themselves to a basic salary.

How does Nais support companies in managing benefits?

The HR Tech Nais platform is a modern tool that makes it easier for companies to manage non-salary benefits. Nais offers:

• Intuitive system for granting and monitoring benefits.

• Flexible solutions tailored to the needs of different teams.

• Personalization of benefits — Employees can choose benefits according to their preferences.

• Process automation — saving time and resources of HR departments.

• Reporting and analysis — support in decision making on benefits policy.

summary

Non-salary benefits is not only an addition to the salary, but an essential element of the HR strategy, affecting the satisfaction, loyalty and efficiency of employees. Offering attractive benefits can be key to attracting and retaining talent, and platforms like Nais support companies in creating modern and flexible benefits systems, making them more competitive in the labor market.

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