Employee ExperienceLearning and DevelopmentWellbeing & Health

Lifestyle Benefits For Employees – A Complete Guide

3 Mins read

Every company and organization is always hunting for the best talent in the market. With high competition, organisations have to offer more than just a pay check. This is where our guide enters the show – lifestyle benefits for the employees. These benefits are supposed to improve employees’ lives outside working hours. 

Employees are becoming more and more demanding each day. I’m sure you’re aware of companies’ older benefits, such as unlimited coffee, snacks, and similar. This is no longer enough. Nowadays, employees aren’t truly impressed unless these benefits are actively contributing to making the workplace more supportive and happy. 

But, what are lifestyle benefits for employees?

Lifestyle benefits for employees include benefits other than an employee’s salary, they tend to improve one’s overall lifestyle. These benefits usually go further than the standard (health-related) benefits. 

As an uprising trend, companies are focusing on lifestyle benefits that tackle mostly the psychological, physical, and mental health aspects of an employee.

In general, these lifestyle benefits are divided into two groups:

Necessary Lifestyle Benefits

These benefits are considered the ones that an employee would be ‘forced’ to pay if they weren’t paid by the employer. For example: 

  • Childcare;
  • Health Insurance;
  • Emergency Savings Help;
  • Food and Groceries. 

Ancillary Lifestyle Benefits

The ancillary lifestyle benefits are what give your company a competitive edge. Benefits that aren’t essential, but still have a crucial role in one’s lifestyle, and mental and physical health, such as: 

  • Professional development
  • Gym membership
  • Books and podcasts subscriptions 
  • Meditating and yoga classes 
  • Dine out budget

Advantages of Lifestyle Benefits for Employees

Even though highly demanding, I am sure many managers and CEOs still have their doubts when it comes to the importance of such benefits. We want to list some advantages that your company and employees will experience with such an investment:

Advantage One: Lifestyle Benefits Could Be Cost Effective

If any employee is asking for a higher salary and your company can’t handle it, lifestyle benefits could be a strong convincing point for an employee to stay – while your company spends less. Additionally, if thoroughly thought out, these lifestyle benefits will strengthen the feeling of being supported by the work environment. 

Advantage Two: Lifestyle Benefits Contribute To Employee Retention

Sometimes, even people with competitive or high salaries are hard to retain. No matter how well financially paid, employees want to feel supported and cared about. Data shows that employees who feel loved or cared for, are willing to perform better, are more creative, and show longer retention. 

This way, make sure to understand your employee’s personality, character, and needs in order to customize the lifestyle benefits accordingly. 

Advantage Three: Improve Your Company Culture

Improving your company culture is an advantage in itself. 63% of consumers claim that they would rather buy from a company that treats its employees well. Thus, these benefits will improve the company culture and increase your competitive edge. 

Advantage Four: Better Recruiting

HR Managers, keep reading. Harvard Business Review states that 60% of employees consider lifestyle benefits and perks as major factor that influences the acceptance of a job. We know that lifestyle benefits give you a competitive edge – which means better talent acquisition. 

Examples Of Other Companies Offering Lifestyle Benefits


Apparently, LinkedIn Lifestyle Employee Benefits is focused in two countries: The US and Canada. For employees coming from these two countries, LinkedIn offers an annual $5,000 stipend for professional development related to their job and a $1,800 wellness allowance.


Deloitte employees are given an annual stipend of $500 which they can use in whatever wellness, health, or lifestyle program they want to participate in. 


Starbucks offers up to $1000 tuition reimbursement for their employees.


Facebook is well-known for its lifestyle benefits for employees. It is best focused on family life, proven by a $4000 stipend that it gives to its employees for newborns. 



Google’s diverse lifestyle benefits for employees count a $1000 work-from-home stipend, traveling allowances, free massages, and more. 

Getting Started With Your Lifestyle Benefits Employee Package

Accordingly, if our article was convincing enough, you probably are thinking about designing a package of your own. No package fits everyone, so make sure to undertake the following steps:

  • Review the current benefits offered; do you have data on their uptake? How do they stack up against what your competitors are providing?
  • Create a budget to help you comprehend the costs associated with the categories of benefits you can provide;
  • Ask your staff for their opinions on the benefits you now offer. Recognize what employees want to see more of, less of, and what works and what doesn’t;
  • To ensure that the implementation of additional benefits is equal and consistent for everyone, create internal review procedures;
  • Every year, review the perks your company provides.

A Final Opinion To Conclude

As shown throughout the article, lifestyle benefits don’t bring advantages just for the employees, but for the company as a whole. They can greatly increase employee’s satisfaction, and retention and help you with a competitive advantage. 

Always ensure to personalize your benefits packages so that each employee can use them to their best fit. 

For Further Readings:

Understanding Psychological Screening Inventory (PSI)
Expertise Mapping – Understanding Employee Skill Matrix Charts
Designing a Basic Handbook Weapons Policy – a Quick Guide
Soft Skills Training: How to Teach Soft Skills at a Workplace?

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About author
Fatjona Gërguri is the content writer for Employee Experience Magazine, covering the relevant topics about employee experience, organizational culture and general HR topics.
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