The fringe benefits package is one of the most important factors for employees, alongside salary. Not only are job seekers already screening for compensation packages, but the extra perks an employer adds to the salary can also be a deciding factor in retaining and engaging existing staff.
Of course, the existence of a compensation package alone is not enough; its composition determines whether it achieves the desired goal. To avoid unnecessary investment by the employer, the composition of the workforce must be taken into account when designing the package.
Workers' needs can vary considerably, depending on age, work schedule, and, of course, individual preferences. If you're putting together a fringe benefits package specifically for blue-collar staff, here are some things to keep in mind.
Blue-collar workers typically want benefits that are practical for everyday life. Giving costly luxury services and programs on a quarterly or monthly basis is likely to cost employers unnecessary money. Leave the exclusive gourmet experience, luxury program, and VIP-opera ticket axis for special occasions. Let these be special prizes in a prize draw, Christmas, or other gifts. Such items have no real place in the monthly compensation of blue-collar workers.
If the salary is not competitive, there is no benefits package to recruit new physical workers or to retain existing ones. It's a bit of a taboo subject, but let's get on with it: you can't expect employees to see overtime pay or inflation-linked pay rises as extra benefits. Even if they represent a higher cost for the employer.
Physical workers want financial security but are not moved by the complicated financial benefits of, for example, corporate share ownership, which pay off in the very long term. The problem with this kind of benefit is similar to that of, say, a luxury wellness lease: it is an extra that does not ease their everyday financial burden and is, therefore, less attractive to them as a general fringe benefit.
In the case of physical jobs, the home office is not a viable option, but there is room for maneuver in terms of working hours and shift patterns. Working patterns have changed a lot, even just in the last few years. Blue-collar workers also require employers to offer flexible working arrangements. It contributes to a healthy work-life balance and employee wellbeing, and can therefore play an important role in long-term engagement. Among fringe benefits, the possibility of flexible working hours (or, where available, a home office) is very high on the list of employee preferences.
From company bus services to public transport, petrol cards, and company cars, there are plenty of ways for employers to contribute to the cost and comfort of blue-collar workers commuting to work. Travel subsidies are an option worth considering for any company with a high proportion of manual workers.
Blue-collar workers appreciate when employers offer them the opportunity to improve their skills and qualifications. Training programs benefit both sides, providing opportunities for longer-term collaboration and richer career paths. Fringe benefits such as language learning support, IT training, or the possibility of any kind of professional development can be a competitive option for manual workers at the recruitment stage.
Any health-related fringe benefit can be a popular element of a blue-collar compensation package. Employers can contribute to the health costs of physical workers by offering complex health insurance schemes, regular health screenings, preventive treatments, or subsidies in areas such as dental care, which are otherwise quite expensive. Targeted programs to promote physical well-being, especially in the context of heavy physical work, are also valuable. This can be quite diverse: massage, physiotherapy, support for sport, swimming pool, wellness, or gym membership.
An organization that looks beyond the employee lifecycle creates value at multiple levels. By providing pension plans as fringe benefits, a caring corporate culture - one that also educates about self-care - can be created in which blue-collar workers can find security. Pension-related compensation conveys to blue-collar colleagues that the company is counting on them for the long term and wants to provide them with security beyond their working years. However, the benefits of pension schemes should in many cases be explained in detail, and especially better communicated to younger colleagues.
Attractive fringe benefits for manual workers can give employers a head start in recruitment, but can also play a key role in retention. By carefully designing a compensation package, employers can also avoid a lot of unnecessary expenses and boost employee engagement. The needs of blue-collar workers in terms of fringe benefits may differ significantly from those of white-collar workers. Therefore, it makes sense for HR and employers to design a balanced compensation package - even if it varies by job function.
