Top 5 employee benefit schemes any organization can offer

One continuous challenge for organisations, big or small, is continuous employee engagement and motivation. Organisations spend millions around the world to achieve that motivation among employees that will make them want to work at the firm. However, before we can spend millions, there are few basic hygiene benefits that every organisation should offer to their workers.

Here is a list of five such hygiene benefits any organisation can offer to their employees,that too at a throwaway spend:

Group Health Insurance Plans

Group health plans cover the basic needs of the employees. Hospitalization and emergency medical treatments not only take a toll on employees’ pockets but also affects the organisation. Group health plans can provide the needed financial support to the employees and their families in the time of need.

Since it is a group policy, ahigher number of employees will fetch better premium rates. Often, aminimum number of covered members should be 20 or more, but that does not mean that smaller organisations cannot opt for it. An easier way to increase the covered member count is by covering the family members of the employees. Thus, even if you have only ten employees in your firm, covering their spouses or parents will automatically increase the covered members to more than 20.

Group Term Life Insurance Plan

Employee motivation is not an isolated thing. Family members and dependents play an important role in employee’s motivation levels in an organisation. A firm with thebetter public image as an employer is more likely to attract talent than those who are not that focused on building their brand as employers.

Group term life insurance is one such plan which gives the employees a sense of satisfaction that their dependents will be looked after even if they are not there. It may also help gain the support of the family as an employer.

Group term life insurance can be bought as a separate policy. However, it is also available as an added benefit with other group insurance schemes like – gratuity and pension.

Group Leave Encashment Plan

Leave encashment is a value-added benefit, as well as a hygiene one. Hygiene because it is a norm for the firms employing skilled workers to offer earned leaves. Some large organisations like CITI Bank, even send their employees on forced leave if they do not go onleave by themselves. However, the purpose of theearned leave is to comfort a worker that whenever they need to devote more time to their families and personal life.

But, imagine multiple employees cashing-in their earned leaves at the same time (usually at the end of financial year or at the time of rollover). Such a scenario can put the firm under serious financial stress. But with group leave encashment plan this liability can be taken care of at a low cost.

Group Accidental and Critical Health Plans

Group Accidental and critical health insurance plans are covers that will add more value to your basic employee benefits in the form of group health and life plans. Accidents can happen within or outside the organisation. While on premise accidents are statutorily covered by Employee Compensation Scheme (every organisation should have this insurance), accidental group benefit takes care of the accidents anywhere in the world.

Employees absence due to an accident can put an organisation in a fix. Taking care of the employee’s needs would be a priority after an accident but shelling out the money could be difficult for the firm. Thus, group accident and critical health plans can help both employees and the firm.

Employees benefit as they do not need to pay 100% out of their pocket and firms as they get to maintain their brand as an employer.

Group Pension & Gratuity Plans

These are alternative to the statutory pension plan (EPF) for organisations with a minimum number of employees (10 for EPF). Though, EPF subscription is mandatory, if a firm can offer a group pension plan with similar or better benefits; that is Provident Fund, Pension and Life Cover, they can be exempted from the rule.

As a country, we are lagging in retirement savings, despite multiple schemes. The fast ageing population can be a major challenge once it retires and needs financial support. Thus, promoting retirement savings should be a priority for all organisations. Group pension plans offer an easy opportunity to contribute to this cause.

Apart from employee benefits, these schemes provide tax benefits to an organisation.