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We have all heard about traditional work benefits going extinct\u2014trendy perks are the new in-thing and are now even included in marketing collaterals and <\/span>brand guidelines<\/a>\u00a0<\/span>in any company culture.<\/p>\n It makes sense in the current employment market, where there are a limited number of qualified potential employees and far more available jobs.\u00a0<\/span><\/p>\n This means that companies have to battle to bring the best candidates into the fold. How are companies accomplishing this?<\/span><\/p>\n A number of organizations have taken to offering unusual perks, especially targeted towards younger job seekers.<\/span><\/p>\n But the question on everyone\u2019s mind is this: are these perks enough to keep employees<\/a> happy, or are they simply a tool to attract candidates?<\/span><\/p>\n Which leads to another question regarding traditional benefits. Are they really on their way out? Do they have no place in employees\u2019 happiness?<\/span><\/p>\n We look at what perks and benefits are offered to employees, and which of these make employees happier, and why.<\/span><\/p>\n Traditional benefits offered by companies have been fairly stable for the majority of the last 50-60 years. These benefits include:<\/span><\/p>\n Some of these traditional benefits have also expanded to encompass assistance for commuting, vision and dental insurance<\/a>, various types of leave, as well as stock options.<\/span><\/p>\n If one takes a cursory look through a handful of job postings, they would see these perks appear fairly consistently.<\/span><\/p>\n As one can see, traditional benefits would be considered necessary for an individual to sustain their life, beyond their earnings at a company, and for them to achieve some work\/life balance.<\/span><\/p>\n On the other hand, perks are an added extra in <\/span>work culture<\/span><\/a>, one that employees could live without, but which certainly add some value to an individual\u2019s life.<\/span><\/p>\n The lack of benefits could explain <\/span>why employees leave an organization<\/span><\/a> after a short period of time, whereas the lack of perks is hardly going to be a detractor for employees.<\/span><\/p>\n And how do we know this? Because a recent survey debunking popular <\/span>company culture myths<\/span><\/a> has found out that benefits far outweigh perks with regard to employ happiness.<\/span><\/p>\n A recent <\/span>Glassdoor study<\/span><\/a> on employee satisfaction found that the traditional benefits companies offered had a far greater impact on employee happiness<\/a> than trendy perks.<\/span><\/p>\n The study was conducted on 175 organizations across numerous industries\u2014including tech, health, banks, aeronautics, grocery stores, among others\u2014measuring 50 perks and benefits.\u00a0<\/span><\/p>\n Once the analysis was complete, it was found that the three benefits most commonly referenced and commented on were (in order of importance):<\/span><\/p>\n And these benefits did not win by a small margin, either. Of the 175 organizations surveyed, 161 had health insurance referenced by their employees.\u00a0<\/span><\/p>\n 401k plans followed close behind with 157 mentions and paid time off brought in the rear with 140 mentions.<\/span><\/p>\n These are staggering numbers, considering that maternity, paternity, and\u00a0prorated child care<\/a> leave was the fourth most referenced benefit at 20 mentions.<\/span><\/p>\n The on-trend perks we mentioned before were barely mentioned a couple of times in the survey.<\/span><\/p>\n Clearly, the winner in this battle is traditional benefits. But why is that?<\/span><\/p>\n As we have mentioned earlier, traditional benefits are seen as necessary for an employee to feel like they can balance their work and life in their company culture.<\/span><\/p>\n And there is a particular reason why this has become important to employees and job seekers right now.<\/span><\/p>\n Health insurance is at a premium\u2014particularly in the United States, which played a large role in the Glassdoor study.<\/span><\/p>\n Healthcare in the US is some of the highest in the world<\/span><\/a>, and certainly the highest in the developed world.<\/span><\/p>\n Adversely, the burden of health insurance in the US falls almost entirely on individuals and the companies they work for. The government gives insurance only to the elderly and the disabled.<\/span><\/p>\n For individuals, it is impossible to pay for private insurance, which is not well-regulated, and thus extremely expensive.<\/span><\/p>\n It is no wonder, then, that employees listed health insurance as the primary benefit that gives them satisfaction in their workplace.<\/span><\/p>\n Working the daily grind isn\u2019t just about putting food on the table and saving up to buy a house. A job is also meant to earn you enough money to be comfortable after retirement.<\/span><\/p>\n The US\u2019 401k plans are a noteworthy pension plan. Part of the employee\u2019s salary is deducted (tax-free) to be withdrawn once an employee reaches retirement.<\/span><\/p>\n One can immediately see why this would be such a necessary benefit for employees. Without the 401k plan, an employee would have nothing saved up for the future.<\/span><\/p>\n As with health insurance, paid time off in the US is also a deeply problematic institution.\u00a0<\/span><\/p>\n The <\/span>US has the least amount of paid days and vacation days off<\/span><\/a> among the 21 richest countries\u2014an average of 10 vacation days and six paid days off.<\/span><\/p>\n But that is only for full-time employees\u2014part-time employees get no such benefits.<\/span><\/p>\n This is why it isn\u2019t surprising that getting paid days off would be such a high priority for employees in the survey.<\/span><\/p>\n It is clear from the above studies that employees are happier if they receive traditional benefits, rather than perks.<\/span><\/p>\n The more popular benefits such as health insurance, pension plans, and paid days off not only make for a better working life for employees but also help them save for the future.<\/span><\/p>\n Perks, while attractive, cannot replace these benefits. They are an added extra and primarily work as an incentive for new employees.<\/span><\/p>\n But as attractive perks are, in the long run, a gym membership and office pets won\u2019t pay the bills after you retire or pay for your medication.<\/span><\/p>\n Companies should take note of this when creating job postings, and when they are planning their budgets.<\/span><\/p>\n To keep employees happy, companies need to give them what they need to enjoy a good quality of life beyond the working sphere and company culture.<\/span><\/p>\n <\/p>\n Author: Ronita Mohan is a content marketer at Venngage, the <\/span>infographic templates<\/span><\/a> and design platform. She enjoys writing about content marketing, productivity, design, the digital world, as well as pop culture, and diversity.<\/span><\/p>\nPerks vs Benefits: What are they?<\/strong><\/h2>\n
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Perks vs Benefits: Which wins?<\/strong><\/h2>\n
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Why Do Benefits Win Over Perks?<\/strong><\/h2>\n
The Price for Health<\/span><\/h2>\n
Planning for Life After Work<\/span><\/h2>\n
Time Away from Work<\/span><\/h2>\n
Invest in Benefits, Not Just Perks<\/span><\/h1>\n