Ultimate Guide for Non-Mandatory Benefits

Providing mandatory and non-mandatory employee benefits according to the law is something fundamental that every company must handle. There are labor benefits that are mandatory and others that are not. But the benefits in general today are not just about money. These benefits even include safe workplace conditions. Other labor benefits are medical insurance, and vacations, among others.

In this article, we will explain those non-mandatory employee benefits. Let us observe:

  1. Non-mandatory employee benefits
  2. What are the advantages of granting non-mandatory employee benefits?
  3. What are the most common non-mandatory employee benefits?
  4. Importance of non-mandatory employee benefits.
  5. How to know what non-mandatory benefits can be granted to the workers of a company?
  6. How can we help you grant non-mandatory benefits to your employees?

1. Non-mandatory employee benefits

Firstly, non-mandatory benefits are those that the employer grants to the employee without having a legal obligation. Likewise, these can be granted through money or other means. Examples of these are childcare payments, medical insurance, paid vacations, and any other that the employer wishes to add voluntarily.

We also talk about those remunerations received by the employees of a company, apart from their salary, for their work. These benefits are not related to salary increases or extra payments. They are benefits that have a clear objective: to improve the quality of life and cover some of the external or internal needs of the workers.

There are benefits required by law that offers mandatory benefits for employees that every employer must comply with. But beyond that, the employer can grant these additional benefits as a strategy to maintain a good working environment in their organization.

Some companies offer corporate discounts, savings funds, health insurance, vacation and service payments, food and education bonuses for children, and productivity incentives. While others opt for non-monetary benefits: they give more vacation days and dictate training and professionalization courses, among others.

The application of these benefits increases the competitiveness of the company; since the best talents will want to work for the organizations that grant them the greatest number of labor benefits.

The employer must consider is always be attentive to the financial viability. A company that is just starting out in the market can hardly use this strategy at the moment. But as it grows economically, the work environment is a fundamental factor to stay and continued advancement in the market. Hence, granting these benefits through an outsourcer, such as a Professional Employment Organization, is an excellent strategy to maintain a good working environment in the organization.

2. What are the advantages of granting non-mandatory employee benefits?

Here are some of the main advantages of granting non-mandated benefits to employees:

2.1 Productivity increase

It is logical that motivated workers are much more productive. And it is indisputable that these benefits not only generate more commitment, but also increase the quality of work of employees.

2.2 They improve the image of the company

The social benefits considerably improve the image of the company and make it a destination of interest for future employees. This, as mentioned above, is one of the main strategies that companies apply to attract the best talent to their ranks. When potential employees know the benefits that the company provides, they will want to be part of the organization and will work with quality and hard to keep their job.

2.3 They favor labor conciliation

Most of the non-mandatory benefits have the objective of improving the quality of life of employees and, at the same time, have a positive impact on work-life balance. Betting on reconciling the work and family life of employees is favorable for the company because there is a reduction in absenteeism and productivity increases considerably.

2.4 Attraction of the best talents

Potential workers discuss the benefits it provides, among many other things. This shows that the company cares about the well-being of its workers, in addition to the financial support it can provide them. With great benefits, you can attract the best remote workers or full-time employees in the area.

2.5 They contribute to facilitating the worker’s work and personal life

Flexible work schedules allow workers and contractors to better manage the time of their personal life with their working life. This implies greater comfort for the employee, which means fewer resignations for the company.

A company that offers the possibility of going to a gym paid for by the company, or a cafeteria that provides them with healthy food, motivates workers to lead a physically and mentally healthy life. This, without a doubt, can avoid the appearance of diseases that would lead to work absenteeism, in addition to the fact that the worker, being healthy, will have more energy, and therefore will carry out his work in a better way.

3. What are the most common non-mandatory employee benefits?

3.1 Medical insurance

It is one of the most common benefits for workers. It helps them keep their health in better condition, preventing more absences from work. This means that health-related benefits may be more crucial than ever to attracting and retaining staff.  Health is the top priority for many people. Therefore, covering this priority becomes a factor that will attract more people to work in the organization.

3.2 Training

Employee training is beneficial for both the employee himself and the company. The business will be able to enjoy and exploit the worker’s new knowledge. In addition, it will help the worker to feel valued for the bet that has been made on him.

3.3 Recreational activities

This benefit is increasing over time. This leads to activities outside of work that help reduce stress and improve the physical and mental state of workers. For example, yoga classes, pilates, gym membership, etc.

3.4 Daycare centers

This is great support for employees with young children. This means facilitating the employee’s life outside of work, but it also means financial support from the company. Since the employee will not have to pay money out of their salary to a daycare, which leads to interesting savings that the employee can enjoy employee.

3.5 Flexibility at work

Currently, allowing flexible policies, especially for remote employees, is an excellent strategy not only to retain the company’s talent but also to attract new talent. This is such an attractive benefit that many companies are considering letting their workers continue to work remotely, once the pandemic is completely over.

Remote work can occur at the employee’s home or in a common workspace set up by the employer for certain workers. Working in a mixed or hybrid way where employees can decide to work directly and physically at the workplace of the company or at home or in another space other than the company, allows workers to make a balance between the need for face-to-face work and the advantages of working from home.

3.6 Summary

For its part, it is important to do a financial analysis on the viability of these benefits. In other words, the priority of a company is always to have healthy finances. From here, certain benefits other than those established by law can be progressively granted.

Similarly, in addition to financial analysis, you also have to do a study on the general needs of the workers. It would not make sense to apply benefits that workers will not actually enjoy. For example, it would not make any sense to offer the benefit of paying for daycare for employees’ children when the vast majority of the company’s workers do not have children.

Therefore, a social analysis of the needs of the employees must be done. In this way, the company does not waste its money unnecessarily. To easier this process, business owners can recruit the help of an Employer of Record. But in general terms, these are required benefits for the development of the company.

4. Importance of non-mandatory employee benefits

The importance of employee benefits lies in the fact that these benefits are capable of positively influencing the overall growth of a company. The non-mandatory benefits of the workers have the capacity to generate personal happiness that translates into the commitment and performance necessary for the development of any business.

For any company to work and its profits to increase, it is necessary to train a happy, motivated, healthy, and loyal workforce. Otherwise, it is very difficult for the company to work since an entrepreneur alone will not be able to take his company to higher levels.

Additionally, it should be noted that these benefits generate a reduction in staff turnover. This is extremely important. So that a company can obtain the maximum benefit that the experience of a worker in a business gives it over the years.

Offering these benefits is not everything. It is evident that they are a great resource to satisfy certain needs of the workers. However, it is very important to know what benefits to give and how to manage them, taking into account the type of workers, their ages, their concerns, their needs, etc., with the intention that these benefits are valued, enjoyed, and above all, seeking that at no time do they harm the company.

But, in general terms, the two most important factors that lead an employer to grant benefits not provided for in the law to its employees, are first the improvement in the quality of life of its staff.  Which will affect the productivity and profitability of the company.

Likewise, another factor is the attraction of the best talents that in the same way by having these talents there will be higher quality in the work and therefore better results in the profitability of the company.

5. How to know what non-mandatory benefits can be granted to the workers of a company?

It is the job of the company’s HR department to ensure a good working environment in a company.

It is important for the company’s human resources department to carry out an in-depth analysis of the true general needs of the personnel under its charge. Obviously, you will not be able to individually solve the problems that each of the company’s employees may have. But, you can opt for the application of a benefit that reaches each of the workers in a certain way; so that none of them feel excluded from its application.

The needs that someone older may have will most likely not be the same as those of a young person. Therefore, these types of factors must be taken into account. In this case, given this situation, it is likely that the older employee tends to get sick more; while perhaps the young worker is healthy, but has a small child.

An intelligent solution so that neither of the two workers feels excluded could be the application for medical insurance that covers the elderly, as well as small children. Although, there are non-benefits that can help the entire workforce fully.

In these cases, what is sought is to make life easier for workers. Thus, that they can properly concentrate on their work in the company. After covering these needs, it is possible to advance in matters related to the comfort of the staff, but which are not really a necessity, such as vacations; but as always, making a prior financial analysis that verifies the viability of the application of these benefits in the company.

6. How can we help you grant non-mandatory benefits to your employees?

If you are looking for ways to give back to your employees, on EOR Middle East we have been dedicated for a long time to offering products that will allow you to reward the effort and dedication of the workers through non-mandatory employee benefits.

EOR Middle East has enough experience advising large companies on what benefits they should grant their workers to improve the quality of their organization; without the company suffering economically. In addition to the employee benefits required by law.

If you have questions about what benefits you can offer your workers, contact us at: [email protected]. Our staff will advise you with all the concerns you may have about this service. You can also give us a call at +971 43 316 688; we will make sure to answer to all of your concerns.

If you are looking for a good job opportunity in the Middle East, you can send us your resume to thetalentpoint.com. We will make sure to find the perfect spot for you. Additionally, if you want to know more about our services, you can email us at [email protected].

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