From snacks to profit shares and private medical insurance (PMI), research has revealed “compelling, quantifiable evidence” that shows “a clear correlation” between higher employee engagement via perks and improved business performance.
The Economic Value Study from Reward Gateway Edenred has found that employers that offer food vouchers or healthy office snacks reported employee retention rates that were 11 percent higher than organisations that didn’t offer these perks.
Results also showed that desk-based organisations providing PMI reported 14 percent better retention rates, 12 percent better talent attraction rates, and a 9 percent higher employee wellbeing score than employers without PMI for staff.
The provider also found that frontline organisations that offer personal accident insurance to staff have a 17 percent higher wellbeing score, 26 percent better retention rates, and 19 percent better talent attraction rates.
Employers that offer profit share bonuses reported 7 percent better alignment between employee and company values, 11 percent better talent attraction, and 7 percent higher growth levels, researchers said.
While ‘spot bonuses’ helped contribute to 8 percent higher employee net promoter scores, 5 percent higher employee retention, and 3 percent improved employee wellbeing.
Nebel Crowhurst, chief appreciation officer at Reward Gateway, said: “This research provides compelling, quantifiable evidence showing the direct impact employee engagement has on business success. We’ve found that companies with more engaged workforces are significantly more likely to see better business outcomes. For instance, offering simple benefits like food provisions can boost retention by over 10 percent, while strategic offerings such as private medical insurance for desk-based staff correlate with double-digit improvements in retention and talent attraction.
“Furthermore, the power of reward mechanisms such as profit sharing in driving growth and alignment is clear. These findings underscore that investing in employee engagement, through well-considered benefits and recognition, is not just a cost, but a tangible driver of improved business performance and long-term sustainability.”
