The ins and outs of financing employee welfare might seem complicated. You might wonder: What is employee welfare? What is centralised finance? And why would a centralised employee welfare system be helpful to my company?
To ensure you have all the answers you need to create a happier and more financially viable business, we’ve answered all these questions below:
1. What is employee welfare?
As a term, employee welfare covers the range of services, benefits and facilities available to employees which focus on improving their health and happiness. Employee welfare benefits matter to workers. In fact, 85% of employees report that they’re more likely to stay with a company due to a strong benefits programme, and 80% would choose additional benefits over a pay rise.
When the happiness and health of your employees improve, the following things occur in the workplace:
- Productivity levels rise
- Employees become more reliable and experienced increased moral
- Employees become better at self-motivating and meeting deadlines
- Staff retention rates rise
- Quality of work improves
- Company reputation improves
2. What is centralised finance?
Centralised financial decisions are made by one team/leader/location. Executives and specialists tend to be in charge of this kind of finance, ensuring consistency and quality.
Decentralised finance, on the other hand, allows employees further down the chain of command to make financial decisions. In a large company, for instance, this could mean that one location operates differently from the next, with middle managers choosing to implement different financial strategies. The biggest drawback with decentralising your company finances is that inconsistency starts to creep in. There’s nothing more deflating than realising other departments or sites are fully equipped with all the latest tech gizmos, while you use slow, outdated versions.
3. What are the advantages of a centralised finance function?
While decentralised financial planning can work in some cases, improving employee motivation and allowing people with more direct insights to make smaller-scale decisions, it’s not always the best option.
When it comes to employee welfare, you want to make sure all your employees can access the same level of care. That means decisions that come from the top are a better call, allowing for consistency, clear direction, accountability and focused vision for welfare spending.
Start your centralised spending on employee welfare in the right place
Investing in your team is vital, whether they’re working from home or in the office. If you’re not sure where to start, consider Podia’s fully supported solutions, designed specifically to elevate the employee experience.
Podia solutions include:
• furniture (including delivery and installation)
• technology (including delivery, installation and tech support)
• a wellbeing platform (Rise by Podia) – available via subscription
• an employee management platform (Elevate by Podia).
Our platforms and bundles are designed to support offices, home workers and hybrid workforces alike. We even make a philanthropic donation from every sale. So, you’re not just doing something for your employees, you’re helping the world too. To learn more, contact us today!