How to Improve Employee Engagement through Reimbursement Programs
Reimbursement programs allow organizations to give back to their employees for participating in self-initiated activities that enhance their well-being. Unlike traditional business expense reimbursements for things like corporate travel and client entertainment, HR-driven reimbursements cover activities like fitness, health, and continuing education.
Why implement reimbursement programs? In today’s competitive market, employee engagement is key to employee retention, which is critical for businesses to be successful. Engaged employees are more productive and more creative. They’re also less likely to leave a company where they feel valued and where they form relationships with their colleagues.
To drive employee engagement, employers can’t rely solely on competitive compensation and benefits, nor typical workplace programs. According to an article on Forbes, today’s employers need to stand out.
By offering their employees benefits that help limit out-of-pocket costs and encourage healthy lifestyles, employers are investing in the well-being of both their teams and their companies.
Common Reimbursement Programs
Reimbursement programs are designed to promote activities that encourage employees’ development, whether it be personal or professional. Some common examples include:
Gym/fitness: Employers may compensate employees’ gym memberships or fitness-related expenses, such as race registration fees.
Education: Typically, companies will reimburse employees partially or completely for education that relates in some way to their work, either in the form of an advanced degree or a certification.
Relocation: Employers with multiple campuses may reimburse employees who wish to relocate but remain with the company. They may also offer location reimbursement to entice new prospects away from competitors.