Comprehensive Benefits Maximize Employee Engagement

Filed under: Benefits

During the rise of the industrial revolution in the early 20th century, employers began to offer benefits such as housing, medical care, and schooling as a way of attracting and retaining workers. One hundred years later, this practice is still in force, with expanded benefits meant to make the professional and personal lives of the workforce easier and more rewarding.

In addition to a competitive salary and, in some cases, flexible work hours and locations, employer benefits range from health insurance to a retirement plan to student loan assistance and gym memberships. But do these benefits really help workers become more engaged in their specific job or in the company as a whole?

According to research conducted by Morgan Stanley at Work, 89 percent of employees say they would be more inclined to remain with their current employer if offered financial benefits that meet their specific needs. Coincidentally, Morgan Stanely reports that 94 percent of US employers are thinking about revamping their financial benefits packages in 2025. 

Perhaps it’s useful to break down today’s spectrum of benefits by their potential to incentivize worker engagement. In other words, while employers attempt to enhance productivity and the company’s bottom line, how do benefits benefit individual workers?

I can focus on my job.

If you’ve ever been preoccupied by financial troubles, or the health or someone you love, or wondering if your child is safe at daycare, then you know how distracting those thoughts can be. Especially at work. It is difficult to concentrate in a meeting or on a specific task if you are worried about a situation in your personal life. By offering a broad range of benefits, employers can help alleviate some of the common worries that plague employees.

For example, a generous healthcare plan gives them the confidence of knowing that they don’t have to spend a lot of money or time battling with their insurer for coverage to treat an ill spouse or child. Receiving monetary assistance each month to pay for college or a student loan can help lessen the worry of making ends meet. And providing vetted child and eldercare resources can help relieve a worker’s mind that while they are away at work, their charges are being well taken care of. With this peace of mind, workers are more likely to stay engaged and feel a high degree of loyalty and appreciation toward their employer.

I feel like my employer cares about my needs.

A comprehensive package of benefits does more than just provide, it sends a message. When workers are able to pick and choose from an array of benefits that suit their specific needs, they feel as though they are being well cared for. Employers may have a number of business reasons for offering benefits, but perhaps none is more important than fostering a feeling of belonging and appreciation. When workers believe an employer truly cares about them, they  frequently feel motivated to reciprocate by being more engaged and productive in their work.

I want to do more.

In fact, a robust package of customized benefits can motivate workers to do more and perform at a higher level. That is why it’s important for companies to offer higher learning opportunities. By pursuing a higher education or extra training and certifications, subsidized instruction allows workers to feel like they have a future at the company. Offering advanced learning opportunities helps them envision a more productive and lucrative future by remaining with and growing professionally through the ranks of the organization. 

I have a plan for my future.

Employer-sponsored benefits help workers envision a better future and engage in tangible steps to achieve their goals. For instance, a generous employer match for a 401(k) plan helps workers create a reliable plan for their retirement, save for college, and provide for their family. These types of benefits provide a powerful incentive to remain with their current employer and stay engaged in their job and their career path.

While employers work to create attractive compensation and benefit packages to recruit highly qualified candidates, it’s important to remember that these same benefits also reward incumbent workers for remaining loyal and help retain them. Instead of feeling like they may be missing out on opportunities elsewhere, when they receive the same scope of benefits offered to new workers – including higher wages and more flexible schedules – it is as if they got a new job themselves.

And just as attentiveness and a hard work ethic tend to be high when an employee first joins a new company, employers can benefit from that same level of engagement from their current workforce by offering a comprehensive benefit package each year across the enterprise.

 

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