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Providing sector-specific benefits during a recession

12/6/2022

Providing sector-specific benefits during a recession

Although many kinds of benefits are applicable to all industries — such as health insurance and paid time off — some are more relevant than others depending on the sector. Due to its nature, company-provided aid or assistance given to employees in the logistics and warehousing field can differ quite significantly from standard benefits.

Many businesses are concerned about their ability to continue providing their employees with job-specific perks during an impending economic downturn. Therefore, it begs the question: do employers need to give their workers benefits during economically challenging times? If so, what are the most important ones?

Let's take a look:

Is it necessary to provide benefits?

In short, yes.

While employers' worries about their financial stability and viability are certainly justified, they must continue to bear the prolonged skills and labor shortages in mind. Not having enough or the right staff is bad at the best of times, but it can be devastating during a recession when peak efficiency is most necessary.

Previously, workplace benefits were typically considered as "nice to have." Now, they've become a standard expectation. Whether a company provides adequate perks will often be the make-or-break factor for job applicants and current employees alike. Businesses need to make their prospects appealing if they want to attract and retain the best talent.

Therefore, it's essential to include an employee compensation package beyond just a monthly salary or time-based wage.

What benefits do you need to provide?

There are a few perks that are particularly relevant to the logistics and warehousing industries, whereas they may be largely inapplicable to others. They include:

  • Danger pay: There are many jobs in the manufacturing and distribution sectors that are potentially hazardous, such as delivery drivers, small engine mechanics and crane operators. If workers are operating equipment that can possibly harm them, or they're exposed to toxic fumes or materials, danger pay is a benefit that should be strongly considered.
  • Disability coverage: Because many logistics and warehousing employees perform manual labor, the risk of physically injuring themselves is greater than in many other jobs. So, it's a good idea to provide insurance that will financially protect workers harmed while working. This can include occupational accident insurance.
  • Life insurance: Following on from danger pay and disability cover, it's highly recommended to give life insurance to employees working risky jobs. That way, if they're killed on the job, their dependents and other family members will be financially covered.
  • Relocation reimbursement: If your business is moving premises (and many companies will be because of downsizing during a recession), evaluate the advantages of compensating employees for the move. This is also useful in the event that you need to shuffle around employees across warehouses depending on location-specific demand.

Regardless of which workplace benefit option(s) you choose to provide, they're sure to help you keep employee retention and, consequently, productivity rates high.