Traditionally, employee benefits were medical aid and pension fund contributions. Covid-19 showed the world that productive work can be done from anywhere, and this has evolved as people’s needs and the work landscape have changed. Now that flexible working is fast becoming the norm around the world, should employers consider implementing flexible working as an employee benefit?
Increased demand for flexible working
In a 2022 McKinsey & Company study, 40% of the 13,382 global workers polled stated that workplace flexibility was their No. 1 priority. That same year, a Tracking Happiness study found that the ability to work remotely increased happiness by 20%. The research also indicated a decrease in happiness once return-to-office policies were set in place.
As a response to this increased demand, employers worldwide are starting to understand that flexibility is not just a nice-to-have, it is a must-have. It is not just SMEs that offer flexibility; large corporates like Investec, Allan Gray, and EY have implemented flexible work policies. There is an acknowledgement that flexible working encourages gender diversity within the workplace, assisting in closing the gender gap in senior management.
This substantial increase in demand for flexible work can be attributed to a number of factors. Advances in technology, like video conferencing and shared online working spaces, have made it possible for more job types to be done flexibly. Other factors include urbanisation which increases traffic congestion on the roads and the challenging economic times that have resulted in both parents having to work and integrate household duties.
Even though flexible working might not be considered an official employee benefit, it is proving to be a perk that is fast becoming the norm in the employment landscape of the future of work. Keeping in mind that not all jobs can be done on a flexible basis, employers should only offer the perk as it suits the role.
What are employee benefits, and how have they changed recently?
According to the Business Dictionary, employee benefits are indirect or non-cash compensation ‘paid’ to an employee. Some of these employee benefits are required by law, for example, UIF contributions and statutory mandated leave days. Others, like medical aid and pension fund contributions, are not required by law. Deciding whether or not to provide these benefits is up to how management wants to structure their compensation packages. These traditional forms of employee benefits make sense, particularly when an employee remains with a company for many years.
However, as the work landscape is changing globally and in South Africa, employees tend to change jobs more often, and the need for traditional employee benefits has decreased as employees self-insure and invest. Employers, however, still need to find ways of attracting and retaining top talent in this ever-changing landscape. More companies have now started to make use of employee perks instead of or in addition to traditional benefits.
Employee benefits vs perks
Even though there is no clear distinction between employee benefits and employee perks, the table below gives a better understanding of what perks versus benefits might be.
| Benefits | Perks |
|---|---|
| Medical aid | Company car |
| Retirement contributions | Tuition reimbursement |
| Paid leave | Meals |
| Maternity / Paternity leave | Flexible working hours |
| Life insurance | Remote working |
Employee benefits are included in the employment contract and employers should be aware that they can be in contravention of the Basic Conditions of Employment Act if they interfere with the provision of the stated benefits or provide them unfairly to certain employees and not to others.
Perks, on the other hand, are less structured, and employers can be creative with what they offer.
Keep in mind that the perk you offer has to attract and retain the talent and skills required, and for that reason, you need to consider what perks your employees will value. One of the perks skilled employees are increasingly seeking out as a benefit is flexible working environments.
Flexibility is a wide term that can be daunting to an employer looking to implement flexible ways of working. For ideas on how best to do this read this article >> Implementing flexible working practices: Organisational factors.
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