Companies worldwide have embraced remote work to cut costs, but many are still lagging in supporting their virtual teams with meaningful benefits. Some are unaware of the challenges faced by remote employees, or they assume flexibility alone is a good enough perk.
Remote teams put in as much time and effort as their in-office counterparts. For example, a developer working from home might build a website from scratch, juggle deadlines across time zones, and jump into late-night bug fixes. Just because they do it from their kitchen table doesn’t mean they don’t deserve the same support and recognition as traditional employees.
Your team members are your most valuable asset, no matter where they work from. A poor benefits package can hurt their motivation, increase turnover, and, ultimately, affect your bottom line. Plus, you may find it harder to attract top talent.
With that in mind, it might be time to rethink the benefits you offer. Here’s how to go about it—and the difference it can make.
Remote Employees Are Often Undervalued and Overlooked
In a survey by Harvard Business School, 21% of remote employees said they would accept a pay cut of 10% or more to keep their flexibility. Another 40% would take a salary reduction of 5% or more to continue working from home.
However, remote work isn’t all sunshine and rainbows. According to Buffer’s research, 23% of employees who choose this work model experience feelings of isolation and loneliness. Other common challenges include:
- Spending too much time at home (33%)
- Not being able to unplug (22%)
- Difficulty staying motivated (20%)
- Difficulty working across time zones (19%)
- Trouble focusing (16%)
What’s more, 9% of respondents said their work-life boundaries were somewhat unhealthy, and 2% described them as “very unhealthy.” If that wasn’t bad enough, one in five remote workers told Buffer they experienced higher levels of burnout compared to the previous year.
As an employer, you may not know what’s happening behind the scenes. You get the work done, pay your people on time, and assume everything is going well. Unfortunately, that’s rarely the case.
Remote employees often feel undervalued and overlooked—and for good reason. Not only are they the first to go when companies downsize, but they also miss out on mentorship, networking opportunities, bonuses, and other perks.
For example, one survey found that, in 2023, remote workers were the least likely to receive promotions and raises. Only 46% were up for a promotion, compared to 59% of hybrid employees and 60% of on-site staff.
One way to make employees feel valued is to offer a great benefits package. This could include anything from technology stipends and online courses to wellness programs, depending on our budget and what your team members want most.
How to Create a Competitive Employee Benefits Program
Employee benefits packages are not limited to retirement plans, health insurance, or paid time off. While these things matter, it’s best to create a program tailored to your workforce.
For instance, remote employees may be interested in mental health resources, home office stipends, flexible work hours, and other perks that support their lifestyle. On-site staff, on the other hand, may value commuter benefits, childcare assistance, and free or subsidized meals.
That said, here are some things to consider when creating a benefits package for remote workers.
Set Clear Objectives
Determine what you want to achieve with a benefits program. Set clear goals like decreased turnover, improved morale, higher productivity, and so on.
Let’s say your team members work on tight deadlines and deal with difficult customers. This constant urgency can spike their stress levels fast, resulting in disengagement and low morale.
Such things come with the job, but you may be able to counteract their impact. One solution is to offer a wellness program, mental health days, free counseling, or even midday recharge sessions as part of your benefits package.
The goal is to help your team reset and recover so they can perform at their best. These initiatives can also reduce turnover and sick days while reinforcing a culture where employee well-being comes first.
Conduct a Needs Assessment
Next, conduct a needs assessment to find out what your employees want and how they feel about the benefits you have in mind. Collect feedback via surveys and focus groups, taking into account the different age ranges, life stages, and job duties.
If you already have a benefits plan in place, ask your employees what they actually use. For example, you may realize they’re not particularly interested in childcare subsidies or gym memberships.
Review their feedback, then take steps to optimize your benefits package or create a new one. Determine which benefits are underutilized or no longer needed, which ones hold the most value, and what gaps you need to fill.
Meet Your Legal Obligations
Federal and state laws require employers to provide specific benefits, such as unemployment insurance, Social Security, and Medicare. Some employees are also legally entitled to family leave, health coverage, and other perks.
A good example is the Family and Medical Leave Act (FMLA), which mandates companies to offer up to 12 weeks of unpaid leave for eligible employees. The time off can be used for family or medical reasons, like caring for a newborn or recovering from a serious health condition.
Review your legal obligations, determine the costs involved, and see which benefits are tax deductible. When you’re done, budget for financial and retirement-based fringe benefits. These include employee discounts, relocation assistance, pension plans, and more.
Aim for a Mix of Benefits
The best employee benefits plans incorporate health coverage, lifestyle perks, and financial support, catering to different ages and needs.
Take Netflix, for instance. The company offers flexible time off, parental leave, stock options, retirement plans, financial coaching, and other great benefits.
Similarly, top-rated employers like HubSpot, NVIDIA, Cisco, and Microsoft provide a mix of benefits beyond those required by law. Let’s see a few examples:
- Tuition reimbursement
- Adoption assistance
- Estate planning services
- 401(k) plans
- Volunteer time off
- Flexible spending accounts
- Family support
- Mental health days
If you’re a startup founder or small business owner, you may not be able to offer such perks. However, you can still put together a well-rounded benefits package that won’t cost you an arm and a leg.
For example, you could provide flexible work hours, home office stipends, and free access to training programs or wellness apps. These perks can boost employee morale, build loyalty, and attract talent without draining your budget. You just need to think outside the box and align your offerings with what your team members value most.
Review and Improve Your Employee Benefits Plan
Review your benefits plan at least once a year. Discuss with your employees to gauge its usefulness, see what works best, and identify areas for improvement.
It’s also a good idea to set key performance indicators, such as employee satisfaction, benefits utilization rate, impact on retention, and leave usage. Monitor these figures over time to measure the success of your company’s benefits policy and make adjustments as necessary.
As a final word, don’t expect to get things right from day one. There’s no one-size-fits-all formula for creating a competitive benefits package, and you won’t know what works unless you experiment with different options.
