12 Types of Employee Perks Every Recruiter Should Know (Survey) (2023)

12 types of employee benefits every HR professional should know about (survey)

What kinds of employee benefits are most appreciated by different generations in the workplace? That's what we'll see in this article based on a recently published study on employee benefits. The study was conducted among more than 19,000 participants from 61 organizations and its results were published inEmployee Happiness Index 2019.

Contents
What are the employee benefits?
What are the four main types of employee benefits?
Employee benefits every HR professional should know about
Types of employee benefits across generations
Ending
frequently asked questions

What are the employee benefits?

Employee benefits cover the indirect pay of your workforce. This could be health insurance, stock options, or anything else offered to employees. While two jobs may offer the exact same salary, they can vary greatly in terms of benefits, making one offer a better financial proposition than the other. This highlights the importance of employee benefits in a job posting.

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12 Types of Employee Perks Every Recruiter Should Know (Survey) (1)

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Some employee benefits are country specific. In the United States, for example, health insurance is a key component of employee benefits packages, and in France, many employees earn restaurant vouchers for each working day.

Offering fair compensation based on performance is an inextricable part ofHR best practices. Compensation and benefits go hand in hand, and the former cover the salary of your employees. For an in-depth article on this key element of human resource management, check out our complete guide onCompensation.

What are the four main types of employee benefits?

Traditionally, most benefits used to fall under one of four main types of employee benefits, namely:

  • Health insurance
  • Life insurance
  • retirement plans
  • disability insurance

Today, however, the list of employee benefits continues to grow. Let's take a look at different examples of employee benefits below.

Types of employee benefits every HR professional should know about

In its 2019 Employee Happiness Index, the HR technology companyto benefitdistinguishes 4 categories of benefits for employees:

  • benefits at work
  • health benefits
  • Financial security benefits
  • lifestyle benefits

benefits at work

This includes working hours and leave, skills development, food and beverage, and employee clubs, activities, and gifts.

Working hours and vacations
Think aboutflexible schedulehere for example. Flextime gives your employees the ability to decide on their working hours and/or where they want to work from. Other examples include additional vacations and, one of the otherBenefits that employees value most, paid paternity leave.

Skills development
Rapid advances in technology and people changing jobs more often also make skills development more important. However, skills development is not only an important benefit for (younger) workers, it is also essential for organizations if they are to remain competitive.

Food & Beverage
We have already mentioned food vouchers in France. Other perks that fall under this category include free lunches, fruit, and coffee. At AIHR we enjoy a free lunch every day and this is something the team greatly appreciates. As a bonus, free lunch and fruit is also a great way to promote healthy eating habits at work.

Clubs, activities and gifts for employees
There are endless possibilities when it comes to this employee benefit package category: knitting clubs, running groups, (video) game nights, secret Santa, birthday gifts, you name it.

12 Types of Employee Perks Every Recruiter Should Know (Survey) (3)

health benefits

Think health and wellness and medical care here.

Health and wellness
More and more companies have wellness programs for employees. The possibilities are endless andExamples of employee wellness programsThey range from a simple gym membership to complete solutions that include physical, mental andfinancial well-being.

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12 Types of Employee Perks Every Recruiter Should Know (Survey) (4)

A focus on the total well-being of employees will be one of the keysHR Trends for 2023, and organizations with HR departments at the forefront will look for ways to improve different aspects of their employees' well-being.

Health care
Health care benefits also come in all different shapes and sizes. Think of physiotherapy and chiropractic sessions, for example, but sometimes fertility treatments and psychological support can also be included.

Financial security benefits

The first thing here is pension plans. Other financial security benefits include insurance, employee financial benefits, and personal financial benefits.

pension plans
Interestingly, according to the survey, pension plans are considered a very important benefit by each generation, but they are not among the top ten most appreciated benefits.

Insurance
As we mentioned earlier, in some countries, health insurance is something that comes with simply being an employee. Other types of employee insurance benefits cover paternity or accident leave.

Financial Benefits
Think commissions, bonuses, and the ability for employees to buy stock in the company they work for.

Folks finance Benefits
The Benify report also shows that stress about personal finances has increased over the past year. All the more reason for employers to start thinking seriously about perks like loan and savings advice. In other words:financial well-being of employees.

lifestyle benefits

Lifestyle benefits include mobility and work-life balance.

Balance between professional and personal life
As employees place increasing importance on work-life balance, it's not surprising that benefits in this area are also becoming more popular. Some examples are childcare, grocery delivery, and legal services.

Mobility
Mobility benefits can make life a lot easier for your employees. Because even if they can work from home or elsewhere, they will have to go to the office or workplace on a regular basis. This category covers things like public transport and cars, but also bicycles and carpools.

What types of employee benefits are most appreciated across generations?

Different generations of workers (often) want different things. We already saw this in our article ongenerational differences in the workplace.

As each generation is at a different stage in their lives, it's not surprising that they tend to appreciate different types of employee benefits. After all, young millennial parents have other priorities besides a Baby Boomer retiring, right?

Benify's study separates employee benefits into two categories: those that employees consider mostimportantand those who mostto appreciate. Let's see what the summary looks like by generation.

12 Types of Employee Perks Every Recruiter Should Know (Survey) (5)

Two things immediately stand out when we look at the benefits that people find important. The first and perhaps most obvious is the fact that pension plans are gaining in importance as the generation ages. This makes sense, as graduates who have just entered the workforce are unlikely to think about retirement for another 40 years...

The second thing worth noting here is skill development. Unsurprisingly, developing new skills is more important for younger generations, as they will be more affected by technological advances, than it is for Baby Boomers.

One thing that is important to all employees, regardless of age, and which tops almost every list is working hours and vacations.

12 Types of Employee Perks Every Recruiter Should Know (Survey) (6)

When we look at the benefits that are mostappreciatedby employees, the top 5 by generation looks a little different. Suddenly, things like food and drink and mobility appear on multiple lists. However, number one among almost all generations is health and well-being.

It's interesting to see that financial well-being is something that the youngest generation of the workforce, Gen Z, has in the top five. As companies increasingly hire Gen Z, financial well-being is likely to become a more important benefit for employees.

Ending

Well, there you have it, 12 types of employee benefits every HR professional should know about. Gone are the days when employee benefit packages that offered health insurance and a basic pension plan were enough to attract applicants to work for you. Today's candidates and employees expect benefits at work, health benefits, financial security and work-life balance. If you want to gain a competitive edge, you need to make sure you choose the best employee benefits that suit your workforce.

You can download the full report for free.on here.

frequently asked questions

What are the employee benefits?

Employee benefits cover the indirect pay of your workforce. This could be health insurance, stock options, or anything else offered to employees.

What are the four main types of employee benefits?

Traditionally, most benefits used to fall under one of the four main types of employee benefits, namely: health insurance, life insurance, retirement plans and disability insurance.

What benefits do employees value most?

The benefits employees value most include flexible hours, the opportunity to work from home, vacation, and paid parental leave.

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