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Company benefits are now an important tool for employee retention and motivation. It is a benefit that is provided over and above their financial compensation. Companies excel in their variety and breadth of offerings, which improves their attractiveness on the labour market. They also significantly reduce staff turnover, which helps to reduce recruitment costs.
What are the most common benefits?
The range of company benefits is diverse and varies depending on the industry and size of the company. Employers try to cover different areas of employee life, from working conditions to leisure activities and wellbeing. The aim of these benefits is to create a pleasant and motivating working environment that encourages long-term cooperation and reduces employee turnover.
Implementing benefits involves careful planning and the use of technology tools to monitor them, such as the Pinya HR system.
The ideal benefits portfolio is composed of traditional and modern benefits. We can divide them into several groups.
Health-focused benefits
Investing in employee health pays off in lower sickness rates.
As part of the health insurance, companies offer extended coverage or contributions to supplemental health insurance.
The Multisport card allows access to fitness centres, swimming pools and other sports facilities at a lower price or for free.
Ergonomic equipment is an essential step towards efficient work. This includes office furniture and health-saving equipment (chair, mouse, monitor pad).
Wellness programmes such as massages, rehabilitation, access to the sauna world and relaxation treatments are a step towards the mental balance of employees.
Financial benefits
Financial benefits are an important element of remuneration that not only supports the financial stability of employees but also contributes to their overall satisfaction. Some of these benefits can be varied by the employer according to the employee's performance and the amount is therefore not fixed.
In 2024, an amendment to the law governing tax exemptions came into force. Benefits will now be exempt from employment income tax only up to half of the average wage. After the amount of CZK 21,983 is exceeded, the benefits are considered taxable income of the employee and must pay tax.
Meal vouchers or meal vouchers are the most widespread benefit in the Czech Republic. In this case, the employer can claim up to 55% of the cost of the meal voucher.
Pension insurance is aimed at the future financial security of employees. Its main advantages are the preservation of living standards in retirement and a sense of a stable future.
Life insurance contributions include regular financial contributions from the employer, which can include either term, investment or endowment life insurance.
Recruitment allowances are projected as part of the referral program when a new employee joins.
Performance rewards, such as cash bonuses, are paid for the achievement of certain performance targets or KPIs.
The 13th salary and 14th salary are extra financial rewards in the form of additional monthly salaries in the year. These bonuses usually serve as a motivational tool and reward for employee loyalty and performance.
Non-financial benefits
Non-financial benefits can be established as part of a company's cooperation with its clients and thus often reflect the company's industry.
Popular non-financial benefits are, for example, flexible working hours or the possibility of a home office. Read more about their popularity in our article Hybrid workplace models.
We also often see benefits such as company events, popular training courses, contributions to sports and cultural activities or sick days.
Non-traditional benefit options
In addition to traditional benefits, there are many less common but attractive options that can strengthen a company's image and differentiate it from its competitors. What benefits can these be?
Sabbaticals are extended leave opportunities that employees can use for personal development, travel or to rest and recharge. This benefit shows that the company values long-term cooperation and supports work-life balance.
The corporate nursery is experiencing a comeback from the days of yesteryear when they were being closed down en masse. Nurseries will provide childcare for employees' children right within the company premises and make it easier for employees to balance work and family life.
Personal development courses are a very popular means of continuous employee development. Popular courses include language, stress management and time management. These courses can improve employee performance and increase their contribution to the company.
A holiday allowance is a financial support provided by an employer that allows employees to draw funds for recreational activities and rest. This benefit contributes to the recovery of employees and can increase their productivity when they return from leave.
How to introduce new benefits
Introducing new benefits in a company requires a systematic approach and thorough planning. New employee benefits are added by the owner (in smaller companies) or by HR, which is the voice of its colleagues.
First, it is advisable to analyse the current benefits and assess their effectiveness. The next step is to find out what benefits employees would value most.
Communication with employees is key - use questionnaires, workshops or focus groups to get feedback. Then develop a plan for introducing new benefits.
When implementing them, it is essential to ensure that employees are informed through internal communication channels and training. Benefits need to be clearly described and easily accessible in order to fulfil their function.
Using the Pinya HR system can make it easier to keep track of them and use them. The software enables efficient benefits administration and transparency for all stakeholders. An employee simply sends a request for sick days or home office to his/her supervisor and the approved absence is entered into the calendar.
Benefit contribution
How can offering benefits contribute to reducing employee turnover and help make the company more stable?
The most important point that benefits bring is creating a positive company culture. Team bonding, company fruit days, working from home or just the fact that the company does not create a competitive environment are factors that improve the working atmosphere, but also strengthen interpersonal relationships and increase motivation to achieve common goals.
Second, regularly evaluating staff and giving them feedback shows that their efforts are not being overlooked. Motivate them by offering career development or financial rewards.
Finally, transparent communication and employee involvement in decision-making processes makes them feel like a valuable part of the company. Communication relieves corporate tension from lack of information and prevents the spread of false claims.
By creating surveys in our HR software, you can effectively analyse their impact on employee motivation and overall company culture. It will enable you to quickly identify the most effective reward strategies.
To make benefits work, Pinya HR has four tips for you:
1. Create the right mix for your employees.
2. Review the benefits once in a while.
3. Include achievable benefits.
4. Communicate only selected attractive benefits from the company. Coffee in the office or other beverages are simply already a common requirement.
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