The Importance of Employee Benefits and Perks in Australian Companies

Australian companies are stepping up their game when it comes to offering benefits and perks to employees. From work cars to free lunches, gym memberships to fertility treatments, employers are going above and beyond to attract and retain top talent.

One local business, Virtus Health, a fertility treatment centre, is even offering staff free access to its egg freezing program. While this may seem like a generous perk, research suggests that it’s not just about the size of the benefits package, but the quality of the relationship between employer and employee.

According to a study by Sunghoon Kim, an associate professor at the University of Sydney Business School, employee benefits are most effective when they create a positive social exchange relationship. This means that employees view the benefits as special gifts from their employer and reciprocate with extra effort and loyalty.

So, what kinds of perks actually work in fostering this positive relationship? Kim’s research suggests that voluntary benefits, beyond what is required by law, are the most impactful. These benefits should be valuable to employees and specific to the company, so that employees feel they are being treated fairly and have equal access to information about what’s available.

In the end, it’s not just about the perks themselves, but how they are implemented and communicated to employees. When done right, employee benefits can attract top talent and strengthen workplace loyalty.