Why aren’t they using their benefits?
Non-monetary benefits can be helpful in retaining and attracting candidates for your company, but what does it mean when they aren’t doing ANYTHING? If you have non-monetary benefits for your team and you think that they aren’t effective – read on to see a few reasons why they may not be working for you.
1. You haven’t done a proper pay analysis. Is your monetary compensation enough? Your employees need to be able to feel value in their salary and wages – without benefits included. Your non-monetary benefits won’t do anything for productivity and overall wellbeing of your team if they aren’t paid enough to begin with. Start first by doing a thorough pay analysis to make sure that your team is properly compensated.
2. Your benefits don’t match your team. When you are evaluating your non-monetary benefits it’s important to make sure that they are a reflection of your company culture AND your team’s values. Your employees will laugh if you’re trying to provide non-monetary benefits, they can’t see themselves using. Are you providing a gym membership for people who are already performing manual labor all day? Maybe a meal- kit or grocery delivery service benefit would be a better fit. Having trouble coming up with ideas? Take a pulse survey!
3. You don’t have the right mix. Creating a compensation & benefits packages can be an art form – empathy, knowledge of your team AND knowledge of your business are all equally important. Finding this mix can be difficult but providing an open environment for your current team to provide feedback can make the process much simpler. Most benefits that you can provide will give you an analysis of use – if your employees aren’t using the benefit, it’s probably a good indicator it’s not a good match.
4. They’ve never changed. Understanding that these packages will continue to evolve is one of the most important parts of the process! As time goes on, more options become available and honestly, life changes. I recommend that you regularly evaluate the benefits you provide for your team to make sure they still work for them. You could have created your original package when the average age of your team was 25-30 without children – if those people are still on your team you might consider a childcare benefit instead of a benefit you chose years ago that isn’t being used anymore.
At the end of the day, the most important thing to understand about benefits and compensation is VALUE. Is your package creating value for your team? If it’s not, maybe that’s why they aren’t providing value for you!
Do you need help creating a compensation package for your team? Contact Prism Consulting VA today to see how we can help you and your team!
