Employees evolve continuously, and it’s important to keep that in mind. While they may have been happy with higher pay but no benefits in the past, things are changing. More and more employees realise that benefits are more valuable than salaries, especially as they grow older and take on bigger responsibilities.
At African Unity Life Ltd., we know the importance of group insurance for employees and what it means for your business. Apart from it showing your employees you care, it helps improve job satisfaction, lower turnover, and create more loyal employees. While we cannot ignore the advantages of a high salary, we also can’t ignore the benefits that come with a company benefits package. To find out more about how employee benefits have become more valuable than a big salary, read below.
Lessens the financial burdens
One reason why staff prefer employee benefits over salary increases is that it helps lessen the financial burden. While a big salary can help your employees, you don’t know what financial obligations they have and how much it costs them. For example, your colleague or their family member may have a chronic illness that needs them to go to the doctor frequently. The cost of medical attention and day-to-day expenses can be a lot to handle financially. And even if you have a big salary, you might not be able to afford everything you need. This is where you show your employees how much you value them and their well-being.
Shows you value their well-being
When it comes to certain types of employee benefits such as funeral and health insurance, this shows that you care for their well-being. But, these also show that as a company, you wish to help your employees and their family members. Many South Africans have families that are solely dependent on them financially. This could lead to stress, depression and bad financial decisions. By offering them benefits that help lift not only the financial burden on themselves but also their extended family, you are showing them how much you value them and their mental, physical and emotional health. We have affordable funeral cover for extended family members and your employees, helping relieve the burden of worrying about the funeral costs of a loved one.
Motivates your employees
Employee motivation is key to a successful workplace, and what better way to achieve that than by giving your employees something they appreciate. While a big paycheque is beneficial and an employee can do a lot with it, it doesn’t set you apart from other employers. Any employer can offer an impressive salary, but that won’t motivate your employees to go above and beyond for your company; benefits do. Benefits show that your company appreciates their employees and they aren’t just there to fill up chairs. This is why many employees find themselves dissatisfied and looking for employment elsewhere.
It’s more than just for your employees
As mentioned above, many employees have family that they need to take care of. In most cases, it’s elderly parents who have no means to get proper medical care. This puts a toll on your employee as they have to stretch their Rand to accommodate both their immediate and extended family members. While a salary can do that, having healthcare insurance helps take care of the expensive medical bills so that they can use their money on other things that are just as important. Benefits such as funeral and life insurance also come in handy as your employee will know that, should anything happen to them that prevents them from working, their family will be taken care of financially. And, their family won’t have to worry about the cost of burying them as your organisation will have taken care of that.
Helps them prepare for their future
Some people prefer structure that will help push them toward preparing for their future. Having a salary and trying to split it so that it can cover your needs and wants now, as well as in the future, can be tiresome. And for employees who have a lot of financial obligations now, their future can often take a back seat. This is why it’s important to have a salary and benefits as those benefits will help them prioritise the future. Their salary can go towards things they need, while your benefits can help them take care of their families in the future. This alone will help give your employees peace of mind.
Life is unpredictable, and sometimes your salary cannot stretch as far as you want it to go. This leads to people going into debt and increases stress. Money issues don’t only affect your employees in their private life, but they can trickle down into their work performance. And while offering benefits to employees isn’t compulsory, it also helps business owners reach their bottom line and be successful. Your employees are the lifeblood of the company, and when they are dissatisfied or emotionally stressed, your business takes a knock. To find out more about our group coverage, contact African Unity Life Ltd. today. We are a licensed life insurer and an authorised Financial Services Provider – FSP NO. 8447.