written by This year, attracting and retaining young talent within companies has been one of the most discussed topics in HR. Talent acquisition is a strategic priority that underscores the fact that personalized benefits tailored to employees’ needs are more than just a trend—they are a necessity for employers seeking to build a solid team. Conversations about solutions for reducing employee turnover and attracting new talent will undoubtedly continue into 2025. In this context, HR professionals must be prepared to address these challenges with new strategies and tools.
Current Challenges in Employee Retention
This year, HR specialists have faced employee turnover in a context where Generation Z and Millennials have increasingly high expectations from employers. The issue of turnover is not just about losing an employee but also about the significant financial impact of replacing one. The costs associated with losing an employee—such as recruitment, onboarding, and training—are often much higher than initially anticipated, emphasizing the need for effective retention strategies from HR departments.
Personalized Benefits: What They Are and Why They Matter
For a safe and enjoyable work environment focused on people’s needs, employees could choose from a range of benefits such as medical insurance and wellbeing programs to promote physical and mental health or financial support like pension contributions or other benefits related to financial security, adjustable to individual priorities.
Flexibility is a key factor employers must consider, given that each employee has specific needs. Therefore, plans must be adjustable as employees’ priorities evolve.
Personalized benefits boost employee satisfaction. When employees receive benefits relevant and tailored to their needs, they feel more valued, facilitating their integration into new roles. Alongside satisfaction, their engagement also increases: programs adapted to personal needs reduce turnover intentions and motivate employees in the long term.
How Benefits Have Evolved Over the Past Four Years
According to the latest study conducted by Smartree, “Payroll, Benefits, and Staff Turnover – Evolution and Trends”, which analyzed data from over 400 legal entities and over 2.5 million payroll slips over the last four years, the most frequently offered cash benefits were meal vouchers and bonuses. Among non-cash benefits, private medical services and in-kind perks were among the most popular.
These benefits are often perceived by employees as a “normal” part of their salary, becoming implicit expectations within any compensation package.
The study also highlights an increase in the proportion of non-cash benefits over the past two years, indicating a need for organizations to reevaluate their reward strategies.
However, after a challenging 2024, budgets allocated for salaries and non-wage benefits do not seem to show significant growth. In this context, companies’ responsiveness to employees’ needs and preferences becomes essential. Even low-cost benefits can significantly impact employees’ quality of life, adding value and increasing their satisfaction.
source: “Payroll, Benefits, and Staff Turnover – Evolution and Trends” study
Personalized and Unconventional Benefits
In the realm of benefits, various platforms have emerged that companies can contract to allow employees to configure their own benefits packages based on their needs and the allocated budget. They can choose from a wide range of products or services, sometimes with personalized discounts.
In recent years, benefits have also expanded into wellbeing, combining physical activities, counseling, and mental health initiatives. Employees can access these services regularly or in crisis situations. For HR departments, preventing and anticipating challenging moments is crucial, working alongside employees to overcome difficulties rather than addressing them only when they become critical.
Family benefit packages are equally innovative, offering opportunities for employees with children to enjoy additional leave or childcare facilities.
The category of unconventional benefits, less frequently approached by companies, includes perks beyond the traditional salary, insurance, and paid leave, which, in turn, can enhance employee satisfaction and engagement. Here are some examples of innovative, less common benefits that can help attract and retain employees across various categories:
- Financial Education Courses: Held at the office or online, these courses can be provided through specialized financial consultants to help employees better manage their personal finances.
- Facilities for Young Families: Partnerships with daycare centers and after-school programs offer young parents safe and accessible childcare options during work hours.
- Hobby Budgets: Each employee receives a dedicated sum to support their leisure activities or personal hobbies, encouraging a healthy work-life balance.
- Electric Vehicle Charging Stations: Easily implementable support that encourages the use of electric vehicles—whether cars or bikes—promoting both sustainable mobility and environmental responsibility.
- Corporate Volunteering Programs or Sponsorship for Charity Sporting Events: Partnerships with non-profits allow employees to participate in volunteering activities during work hours, fostering team spirit.
- Cultural Tickets or Subscriptions: Offering subscriptions or tickets to theaters, museums, concerts, or cultural events encourages employees to explore recreational and cultural activities.
- Internal Mentorship Programs: Creating mentorship schemes where more experienced employees guide and support newer colleagues or those looking to advance their careers within the company.
These benefits reflect a modern approach tailored to employees’ needs and preferences, demonstrating the company’s active involvement in their wellbeing.
The list can be expanded with various creative, financially accessible, and easy-to-implement benefits. By adopting an open and modern approach, companies can add value and innovation, strengthening their reputation and relationships with employees.
How Companies Can Implement Personalized Benefits
Every company needs to understand its employees. If external examples and scenarios don’t align with their expectations and needs, companies have the freedom to decide and adapt their practices based on internal needs. However, this doesn’t mean HR specialists should ignore what’s happening in the labor market; instead, they should explore every way to meet employees’ desires, boosting productivity.
HR specialists can assess employee needs through internal surveys with open-ended and possibly anonymous questions to receive honest and open feedback about what they’d like to receive at work. Encouraging communication and feedback ensures genuine responses from staff.
A crucial step in implementing personalized benefits within a company may involve collaborating with specialized providers. Review their offers and proposed solutions to identify the options that best meet your employees’ needs and add value to the organization.
Investing in benefit personalization is essential for talent retention and building a healthy organizational culture. In a competitive market, companies that listen to their employees and adapt to their needs will successfully attract and retain more valuable talent, building a stable and dedicated team together.
