Employee benefits

Why does an employer need them?

Because employer wants the employees to work harder and earn more for the company.

Employer also wants that good employee stay with the company so that they will not have to spend money and time searching for another one.

Employee benefits help the employer do it – retain employees and motivate them to work more.

These are practices that will make an employee excited to come to work and make her more productive while she is there.

These benefits may be financial or non financial, long term or short term, and may include following;

  • Remunerative wage structure which motivates the employee to contribute their maximum worth to the enterprise.
  • Bonus to the employees either on festive occasions or as a reward to the employee for their high performance.
  • Social security benefits for employee welfare in the form of provident fund, gratuity, medical facilities, compensations and insurance policies.
  • Different type of leave benefits such as sick leaves, maternity leave

It is often noticed that attracting employees only with money is not always effective as some employees who are motivated by cash are less likely to enjoy their job.

Employee benefits can also go some way in meeting the employee’s psychological needs. Non – cash benefits and incentives have a role to play in fulfilling the psychological need – which is being recognized and rewarded for a job well done.

Such benefits are intangible benefits such as appreciation from a boss, likelihood of promotion, nice office, and more. Non-cash benefits can also create a closer bond between employee and employer.

For example – Technology company HP involved employee in its sponsorship of the London Film festival with screening of classical films, free cinema passes and competitions to win festival tickets. According to the director at HP – These programmes enable employees to broaden their knowledge of business activity and have some fun at the same time.

The organizations must understand to distinguish the balance between the economic transactions of the pay – which is why most of us go to work and the psychological context which makes an employee dedicated, committed and engaged.

Employee benefits whether tangible or intangible can be used individually or collectively, inside or outside the organization. Thus the employee benefits are the comforts and facilities given to employees to enable them to work in a healthy and peaceful environment.

Depending on the organization’s work culture and set up, employers can design, administer and manage the comprehensive benefit package for the employees.

Workplace Design

In 21st century everyone is in a race.

Companies are in a race to stay ahead of competition. Employees are in a race to earn more and grow fast.

To stay ahead in this race companies need to attract good talent. They do it by offering good salaries and challenging assignments. The companies that understand the importance of retaining the right talent also focus on creating a conducive work environment.

That is when workplace design comes in picture. A good workplace is one that enthuse an employee to get up every day and be excited to come to work.

When an employee is excited to come and work, she is able to be productive and this adds to a company revenues and profits.

So clearly it makes business sense for a company to invest in workplace design.

The basics of good work place design as below;

Open and close

A good workplace design combines the elements of openness and privacy. For collaborative work – create open spaces – and also if a sales person wants to make client calls or a developer wants to code – give them private cabins.

Proper Lighting

Great if the workplace can have windows to let sunlight in. If the lighting is artificial then use a mix of bright and ambient lighting.

Ergonomic Seating

Seating that supports back and arms well and workstations that are at a proper height.

Continuous process

Designing a workplace is a continuous process. Employee needs change from time to time.

It is good to think about making some changes every 2-3 years.

Many progressive workplaces these days offer a standing desk for many employees.

It does not end in places where employees work but beyond.

Companies like Baidu in China offers Igloo like relaxation spaces for its employee.

Companies also have non-smoking and smoking zones for employees.

Also keep these in mind while creating a workplace

Company Culture

While designing the workplace, one must understand the culture and business philosophy of the company such as, values of the company, its vision and mission, the customers and clients, a company deals with.

Corporate identity

This is a critical element to either help business that is starting to grow or help a long standing business process. The carefully planned designed that is created will support and promote the identity of the company.

Organizational structure

Understanding the nature and process of the workflow of the company is essential in developing a good design. The way the information gets processed, communicated and transmitted from one place to another. The design of the company can enhance the efficiency of the company’s workflow.


Technology is rapidly changing the way a company work. With portability of work, employees can communicate in many other ways which is not always in person. So, the design must be planned to accommodate the new technology interface to improve productivity.


It is an important factor in designing a workplace. By having flexibility in designs with systems flexibility, movable walls, adaptable lightning and spaces which can meet a variety of work and technology needs, one can avoid the expensive cost included in changing the whole infrastructure with changing needs of the company.

Also look aroud and see what other progressive companies are doing.

The best companies to work surveys are a good starting point for a company taking up workplace design as a core strategy to retain valuable employees.