According to a research study by Metlife, “51% of employers say that using benefits to retain employees will become even more important in the next three to five years.”

Employee benefits are either monetary or non-monetary rewards that are paid to employees. These employee benefits are over and above the regular salary of an employee. Often also known as the fringe benefits, most of the businesses rely on several employee benefit schemes to attract new employees and retain the existing ones. Several employees also look at the perks and benefits offered by an organization before applying for a job in that company.

Employees seek recognition for their hard work. They want their efforts to be acknowledged and offering them benefits will make them feel appreciated and happier.

Effective ways of using employee benefits for enhancing employee productivity 

Employee benefit schemes can broadly be classified into four types. Most of these benefits can fall under the umbrella of these four benefit schemes. 

  • Benefits at work
  • Benefits for financial security
  • Health benefits
  • Lifestyle benefits

There are several ways in which you can boost employee productivity in your business. Here are six effective ways to go about it:

1.  Set priorities for work-life balance

This benefit will take priority as a work benefit. Numerous employees suffer from work-related stress and anxiety. As a result, several productive days are lost. More than 20% of employees at any given time are not happy with their work-life balance in a moderate size company unless there are additional employee benefits.

How to counter all the above issues? It's rather simple. Prioritize work-life balance for your employees. Focus on their well-being and make it a culture for your business. Modify your people management practices to ensure workplace wellness. Create a good work environment that is dedicated to the employees. Ensure that your organization cares for each one of your employees.

2. Create a positive workspace

Set up a break-out area with a coffee machine. Encourage your employees to take regular breaks. This will show that the organization takes its employees seriously and encourages them to take their well-deserved breaks.

You can also encourage your employees to take regular reading breaks. Arrange for a bookshelf and stuff it with a variety of books, be it fiction or nonfiction. Adding developmental and business-related books can also expand the learning opportunities for the employees.

3.  Boost the morale of your employees

Simple benefits can go a long way. For instance, offering work from home was a great way to show you care. However, in this pandemic situation, working from home has become a new norm and is not considered a benefit anymore. But you can offer the flexibility to work whenever they want, as long as they put in the requisite work hours. Several organizations follow this simple rule. This allows employees to set their priorities and work at their convenience.

You should make it a point to meet up with your team, once in a while, and talk to them about their needs and demands. When you give them a patient ear, you will find that they are willing to take their responsibilities more seriously.

4. Recognize and appreciate even the smallest achievement

Who wouldn't want to be appreciated for their hard work? Any form of appreciation can motivate an employee to do even better every day. Often, saying a simple "thank you" can do the trick. But as benefits, rewarding and recognizing the employees can be one of the best ways to retain them and make them happier.

There are so many ways in which you can reward your employees that involve no cash payouts.

  • Allow your employees a "Thank You" leave once a year
  • Offer your employees educational or vocational training sessions to enhance their skill sets
  • Offer them paid vacations, paid parental vacations, etc.
  • Arrange for office board games and allow your employees to take their time out for a match.

5. Offer benefits other than the typical ones

Most organizations offer health benefits and insurance plans for their employees. Apart from the usual ones, you should offer benefits that are not the typical ones. This will not only lower the rate of attrition in your company but also attract new employees in the long run. A few examples of these types of benefits include: 

  1. Tuition fees reimbursement: There are several organizations that offer tuition reimbursements for their employees. This helps in encouraging your employees to take up courses that can upgrade their skillset. Once they complete the course, they can get the tuition fee reimbursed.
  2. Corporate discount vouchers: When you have tie-ups with various companies, you can offer corporate discounts and vouchers for those companies for your employees. Such corporate vouchers can offer the best deals and offer that are handpicked for the employees and the prices can exclusively focus on them.
  3. Meal and multi-benefit vouchers: You can offer a meal voucher for your employees which they can use for a subsidized rate at different restaurants and cafeterias. You can also issue a multi-benefit pass for your employees with which they can buy fuel and other regular household items for their daily requirements.
  4. Stock options: You can also offer your employees to buy some company shares at an agreed-upon price which is of course much lower than the market rate. This is also a great way to help your employees feel a belonging to the company. With company shares in their name, they will also have ownership over something that they are working for.
  5. Childcare facilities: When you offer childcare facilities to your employees, they feel grateful. It’s a great benefit for the employees as it offers a work-life balance. You can offer crèche for the children of the employees within the office premises, and encourage your employees to spend some time with their children during office hours.
  6. Wellness programs: Encourage your employees to follow a healthy lifestyle. Offer them healthy meal vouchers, a gym membership, periodic health screening opportunities, etc.
  7. Transport: It’s a great idea to offer transport for your employees from their homes to the office regularly. They can avail the company provided buses and cabs to reach office instead of availing the crowded public transport. Many organizations offer home pick-up and drop for their employees. You too can take this initiative for your employees.
  8. Profit-sharing percentage: It is also a great employee benefits scheme that you can opt for your employees. Offer them a share of the profits made by the company. This will also encourage your employees to work harder for the profits of your business. It is also a great way to keep your employees committed to the collective business goals.

6. Help in employee growth by creating a career path

Support your employees in paving a career pathway for their future. Help them in building their skills and knowledge that can improve their career. This will not only prove that you value your employees but also give your employees a boost in their spirits. Here are a few ways in which you can do this: 

  1. Take interest in their personal development goals: Communicate with your employees and stay attuned to their aspirations and expectations from the company. Help them in designing a framework for their career. Identify and recognize specific milestones for their achievements and you will have employees that are motivated, productive and happier.
  2. Offer your employees on-the-job and virtual training: Any form of continuous learning can fuel the career growth of your employees. Encourage career coaching and mentoring. It is a two-way street as the employees can gain insights from seniors and also share their fresh perspectives with them.
  3. Encourage job rotation: People look for variety in their daily lives. Working on the same task day-in and day-out can make them feel unproductive and stagnant. Offer job rotations to your employees and they will gain new skills and also have a better understanding of the business process. It will also make them more productive and appreciate your interest in their career path.
  4. Help your employees to see the bigger picture: Make them feel a part of the big business by giving them a look at the bigger picture. Remind them how they contribute to the growth of the business and help them in expanding their job roles in the organization. That way, your employees will achieve career growth and the company will benefit too.


Paying employees a monthly salary is not enough if you want to enhance productivity. Most employees believe that they will have improved productivity if they received regular employee benefits and office perks. Employee benefits can make your employees feel valued in the organization. And it’s imperative to say that when an employee feels appreciated, valued and recognized, they put in extra effort towards enhancing their productivity as a team.

Also, as an employer, remember, happiness can be infectious. When you focus on creating a positive work environment and work culture, it can maximize happiness amongst the employees. When happiness spreads, it can affect the energy and productivity of the entire team and its members. It not only takes care of employee engagement but also enhances loyalty.

Author bio

Atreyee Chowdhury works full-time as a Learning Experience Designer and is passionate about writing. She has helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted content that is both informative and engaging. She lives in Bangalore, India with her husband. She loves to read, experiment with different cuisines, travel, and explore the latest content marketing and L&D trends in her free time. You can reach her on Linkedin or write to her at