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Professional Discussion on Fringe Benefits
A business cannot survive today if it merely repeats what it did yesterday. If it does not grow, it will perish; it is like a living organism—if it stops growing, it starts dying. / Edgar Lawrence Doctorow /
We often write about why it is beneficial for employers to choose student employment. We strive to highlight how partnering with Y Generation School Cooperatives can significantly ease company operations, as we assist in recruiting candidates for the current position and select the most suitable one. We have explored the issue of taxation extensively, which you can read more about here, and we have also analyzed Generations Y and Z in detail to handle young employees as effectively as possible.
Now we have arrived at another important topic: what should we offer students to make them want to work with us and to retain them?
Focus on Cafeteria Benefits
According to a survey by the Institute for Economic and Enterprise Research of the Hungarian Chamber of Commerce and Industry, in 2018, 88% of employees in Hungarian companies received at least one type of fringe benefit. The majority of employers, over 55%, cited local transport passes or other travel subsidies and Erzsébet vouchers as the most commonly given cafeteria items. Among large companies, the most widespread fringe benefit is the SZÉP card, used by 73% of companies.
The Extent and Frequency of Fringe Benefits Can Greatly Influence Employee Commitment to the Company
The essence of fringe benefits is that employees perceive them as gifts, as they receive these in addition to their salary, as a bonus. These so-called gifts can be regular or one-time perks that employees receive periodically. The main aim is to increase motivation and foster or strengthen a committed relationship with the company.
What motivates an employee depends on numerous factors such as life situation, age, job role, industry, and long-term goals. For those with very low salaries, money is clearly the main motivator, with gestures like cafeteria items coming second. Conversely, when income reaches a level where additional monetary benefits have no noticeable impact, personalized gifts can retain employees. Therefore, salary and the benefits package should always be handled together.
But What About Young People? What Fringe Benefits or Offers Motivate Them?
Young people crave a positive lifestyle, flexibility, and enjoyable work experiences, while the experienced need training opportunities and health-centric solutions. It is crucial to ensure the freedom of choice and that the benefits can be tailored to individual needs.
Transportation Passes and Discounts for Nearby Gyms Can Work Great for Young People
To enhance work enthusiasm, we recommend offering the following choices:
- Travel subsidies, coverage of public transport passes
- Gym membership discounts
- Workplace catering
- Beauty salon discounts
- Massage discounts
- Gift vouchers for clothing
- Housing support
- Vacation services
- Erzsébet voucher
Why not? It can repay its cost multiple times!
