Benefits, perks, rewards: what’s the difference?

 

Benefits, perks, rewards: what’s the difference?

Is there a meaningful difference between these three lovely, shiny bonuses (what even is a bonus?). Perhaps the easiest way to remember what’s what is:

• Benefits

Benefits are built into one’s salary. Traditionally, benefits were substantive yet non-financial aspects of one’s payment. For example, in the U.S, full health insurance can save an employee a lot of money and stress.

• Perks 

Perks are often thought of as additional little treats that make life at work more bearable. These range from beer Fridays, to dog Wednesdays, to frisbee Mondays. However, where things are changing is that these auxiliary perks are starting to count for more.

Many employees want to better themselves, and the best companies are realizing this. So now, perks can include time allowances to learn a new language, join fitness classes, or cycle-to-work schemes.

As you may have noticed, many of these more substantive perks will be mutually beneficial, as a happier, healthier employee will contribute to a positive office culture as well as perform better. 

 

 

 

• Rewards

Rewards provide an opportunity to not only promote productivity but do so in a way that aligns with your company values.

So, this means instead of giving a cash prize for good work or a day’s holiday for a successful project, you should offer incentives that will promote teamwork, or consideration in the workplace, as well as those that encourage quality work.

The who, how and why of giving back to employees  

Unlike benefits and perks, a key aspect of successful reward management is recognizing and singling out who to reward. How do you fairly tease apart who has acceptably contributed to a group goal, and who has shone? It can be tricky, but clear communication channels and knowing everyone’s goals is a start.

Reward management can contribute to a thriving company culture. If your employees are rewarded for going above and beyond, helping each other achieve, and meeting their own goals, you’ll foster a caring community and compassionate environment. Furthermore, this can be done to varying degrees, meaning that you won’t dilute the significance of rewards. Promote healthy competition to develop individuals, or recognize a team for their quality work. It’s a big step towards implementing the three crucial R’s in your workplace: recognize, reward, retain. If you do these well, you'll have won reward management.

So, now you know that rewarding can play a crucial role in company culture as well as employee retention, let’s look through the myriad benefits to your company that good reward management can have.

 

References

Daniels et al., (2011). Here to stay –Taking Competencies the next level. Work at Work Journal,10(1), 70-77.

Deutsch-Salamon, S. & Robinson, S.L (2011). Trust that Binds:The Impact of Collective Felt Trust on Organizational Performance. The University of British Columbia

Dewhurst, M., Guthridge, M., Mohr, E., (2010). Motivating people: getting beyond Money, Business Source Complete.

Descombe, M. (2007). The Good Research Theory and Design for Small-scale SocialResearch Projects, Philadelphia: Open University Press.