The workplace environment is changing. Demographics are evolving, and millennials and Gen Z dominate the workforce. These generations are different from previous ones when it comes to what they want. For this reason, employee benefits have shifted away from only financial rewards. 

The new workforce prefers work-life balance, sustainability, and individual health. With such a radical change in demographic, HR managers are trying to revamp the entire employee benefits scene and introduce innovative employee benefit bundles. Below, we will discuss how we anticipate the future of employee benefit packages to look.

Embracing Innovative Benefits

Alongside traditional benefits, future-focused companies add innovative ways to better cater employee benefits to the changing needs of their employees. Some innovative schemes that are beginning to shape the future of employee benefits include:

Electric Car Schemes

As environmental concerns rise, electric car schemes are also growing in popularity. These initiatives encourage employees to buy or lease an electric vehicle, allowing them to receive financial incentives or a discount. 

As a result, employees save money on running costs, while the company reduces its carbon footprint through a highly attractive employee benefit. Loveelectric.cars is an example of a company that provides a salary sacrifice scheme, making things easier both for employers and employees.

Green Commute Programmes

Commuting programmes encourage employees to go green in their daily commutes by using a bicycle, walking, carpooling, or public transport. You can provide subsidies via public transport passes, along with offering bike parking facilities and on-site showers for cyclists.

Flexible Working Arrangements

The new workforce is all about flexibility, performing best when they are left to do their job. The evolution of modern tech has enabled flexible working arrangements like telecommuting, remote work, and compressed workweeks. You can use these work models as employee benefits, likely leading to higher job satisfaction, lower work stress, and contributing to employees’ loyalty.

On-Site Childcare

Balancing childcare responsibilities with work demands can be a major challenge for working parents. You can offer on-site childcare facilities, or creches. Both can ease out the stress, allowing parents to focus on their work while ensuring their children are well-cared for during the day.  

Option to Purchase Extra Annual Leave

Some companies now offer the option for their employees to purchase additional PTO. This means that employees who value extended holiday time or personal days can tailor their benefits package to their desires. It’s in the best interest of the employer to keep employees happy, so this is a great way to work toward this. 

Solar Energy for Home 

You can negotiate a deal with green energy providers that allow employees to gain discounts and subsidies for installing solar panels in their homes. This is good for the environment in general while also reducing employee energy bills – great for their long-term financial well-being. 

New Gadgets & Tech 

You can get into a tech scheme where employees can purchase tech either as a salary sacrifice or at a discounted rate through an employee portal you set up. Employees can then use this tech for personal use, but it can also help when your staff work from home or out of the office. It’s a win-win for both employees and employers. 

Pet-friendly Workplace 

Pet owners, and more specifically – dog owners – often define themselves by their relationship with their pets. For this reason, it’s a good idea to think about allowing your workforce to bring in their pets. If employees are unable to bring their pets to work every day, pet daycare or cooperation with pet-sitting services is a valuable benefit, too. Creating pet-friendly areas in the office reduces stress and increases employee morale. Plus, who doesn’t want a friendly dog in the office while you work?

Experiential Learning

Go above and beyond traditional conferences and treat your employees to a unique learning experience. Schedule workshops and trips that encourage staff to learn more about your industry. Consider organising a culture immersion retreat where employees share a house and brainstorm ideas together.

Subscription Boxes

Show your employees that they matter and provide subscription boxes for things they enjoy, such as coffee, fitness gear, tools to learn a new language, or even meal kits. This simple personalised perk demonstrates that you’ve put some thought into each individual’s preferences.

Sabbaticals with a Twist

Reimagine the traditional sabbatical. Allow your employees to complete a passion project during their time off; it may include volunteering abroad, spending time at an artist residency, or writing a book. Upon return, let employees showcase their new skills and share their experience with their colleagues. 

Why it’s The Best Time to Look Beyond Traditional Benefits

Historically, employee benefits have been centred around the idea of financial stability and taking a short break from work. That may no longer be the case. A report from 2023 indicates that 1 in 10 employees will take a pay cut for better benefits. 

Therefore, it’s becoming increasingly harder for employers to attract and retain the best available talent, as merely offering attractive salaries often doesn’t cut it. Consequently, human resource managers are no longer focusing solely on monetary benefits. This knowledge has led to the improvement of employee benefit packages, which is essential due to the following reasons:

• Recruitment of young talent in an increasingly competitive job market.
• Retaining skilled employees will lower staff turnover and associated costs. 
• Identifying the evolving lifestyles and preferences of the workforce.
• Ensuring your workplace is diverse and inclusive.
• Adjusting to changes in the evolving demographics.
• Building an employer brand.
• Tailoring benefit packages for a global workforce.
• Responding to concerns regarding work-related health, safety, and well-being. 
• Improving the management and ease of access to benefits through technology. 

Novel employee packages can help HR managers create an organisational environment that can attract, retain, and engage key professionals while keeping up with changes in the global workforce.

Closing Thoughts

The future of employee benefits is diverse, as it’s all about understanding and catering to all the employees’ needs and priorities. By placing emphasis on sustained benefits, work-life equilibrium, and customisation, you can create a strong benefits package that will entice and keep ideal employees. No matter how the job market changes, your capacity to adjust your employee benefits packages will be vital for an effective and prosperous workforce.

Guest writer.