12 billion PLN on employee benefits in 2018

The lowest unemployment rate in history and demand on the job market resulted in a billionth growth in investments in non-financial benefit packages in 2018. According to the prognosis, the benefit market will be still on the rise, also regarding employees’ health.

The latest non-financial benefits budget survey conducted in 2018 by ARC Rynek i Opinia for Benefit Systems shows that spending on incentive programmes increased in every third company. The average amount that employers spent on one employee was 1995 PLN. It is 80 PLN more than in 2017. Non-financial benefits are used by 87% of employees.

– Last year we noted 8% increase in employers’ investments in non-financial benefits (compared to the spending in 2017). Such a trend has continued for the last few years. Every year the market increases its potential by additional half a billion zloty. It is encouraged by good economic conditions in Poland and a huge demand for employees on all levels. Non-financial benefits are an important element that influences an employee’s decision on taking a job in a given company. It also builds existing employees’ loyalty – notes Adam Radzki, Management Board member at Benefit Systems, the company that created and manages the MultiSport card.  

The increase in the benefits value could also result from the fact that the tax allowance related to benefits financed from the Social Fund was increased from 380 to 1000 PLN.

Incentives are large companies’ domain

Non-financial benefits are still most often used by companies with more than 250 employees. In 2018 an employee in a large company received on average four non-financial benefits with the total value of 2,500 PLN. According to the survey, it is in these companies that the biggest increase in spending on incentives was noted. One in five companies declare that it spent more 4,000 PLN per employee on benefits within one year.

Appreciated benefits

One of the most popular non-financial benefits are still sports cards. According to the Sedlak&Sedlak consulting company, they are used by 46.5% employees receiving benefits.
– Unflagging interest in benefits connected with physical activity among employees is confirmed by the MultiSport card sales results. In the last 12 months the MultiSport card was used by 100,000 new users. This is one of the most attractive forms of supporting health prophylaxis and health is high on the list of values both in employees’ and employers’ eyes – adds Adam Radzki.

According to the “Employee’s health 2018” survey conducted by ICAN Research & Diagnostic, every working person is highly aware of health care and most of them are involved in active prophylaxis. Employees usually look after their health by exercising outdoors, eating properly and going for regular health check-ups. As a form of prophylaxis, 28% of them practise sport.

Sport pays off

By investing in non-financial benefits that support employees’ health, employers reduce costs generated by sick leaves.
– Due to well-being, an employee who practises sport at least once a week for minimum four months within four years will spend 20 days more at work than a person who avoids physical exercise. Considering the cost of an employee’s lost daily activity, which is around 470 PLN in Poland, the potential saving on an annual basis oscillates at 2,350 PLN. Compared to the average spending on non-financial benefits in 2018, which was 1995 PLN, an employer can earn 350 PLN on every employee who is present at work – emphasises Adam Radzki.
Companies notice profits that they can gain from offering non-financial benefits and so 16% of companies taking part in the ARC Rynek i Opinia survey is planning to increase their spending on incentive packages in 2019.

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