Why isn t it advisable to pay directly for employee benefits?

Mondo Workplace Updated on 2024-01-31

In many European and American market enterprises, the annual salary increase is only about 2%-4%, to retain talents, rely on a variety of intimate and warm benefits!Employee benefits don't exist on the first day, but there are always employees and business managers who ask HR: Why do we need to pay employees benefits, and don't we get it directly?Indeed, there are some companies in the market that adhere to the principle of "cash is king" and discount all the benefits given to employees into cash, but this will have certain risks.

In the new normal of declining GDP growth, the year-end salary increase has declined for six consecutive years, and salaries have not risen. In addition, a 10% salary increase may be 1,000 yuan for employees, and it feels okay. But for businesses, the overall personnel cost increases by 10%. The question is, is 10% enough?The next salary increase will be increased by 10%, can the company still withstand it?

Is the company making money at a rate of 10% or even faster?Not necessarily. So companies have to look for, in addition to salary increases, what other tricks do we have to retain talent-Employee benefits

In large foreign enterprises, human resources are very particular about benchmarking. The median market value of this position is 500,000 yuan per year, so we will also increase it to 500,000 yuan. Competitors send 1,500 room subsidies to employeesThen we're going to go to 1500 as well. The same is true when poaching people, cash, relatively speaking, is easier to benchmark.

But how to benchmark benefits?How can benefits be replicated?The other company has a platform for profits, and you can use the points given by the company to exchange for fitness cards, health insurance, and even parent insurance and child insurance that are basically unavailable in the market.

Welfare is not only a matter of money, but also about time and energy, and even about corporate culture. Enterprises should let employees feel more about the benefits of corporate culture, whether it is to pay attention to health, or to pay attention to family ......

Third, some benefits are not available on the market.

Many friends who can buy insurance will find that individual insurance** is much higher than group insurance**, and physical examination is also required. Because there is a risk of "adverse selection" in individual insurance: healthy people don't want to buy it, and people who want to buy it may not be healthy enough. Insurance companies are most afraid of this.

For insurance companies, there is no adverse selection risk of "buying insurance only when you are sick" in terms of group purchase and willingness to buy. Moreover, the buying group is large, which is more convenient to diversify the risk. Therefore, group insurance is often cheaper, and employees are not required to submit medical examination reports one by one to buy it.

Enterprises give money, of course, with corporate culture and values, attach importance to family values, hope that employees spend money on their families, identify with the values of health, hope that employees spend money on promoting health, identify with the values of learning and development, and hope that employees spend money on learning and self-investment. But just giving money can't control it.

Related Pages