THE ROLE OF EMPLOYEE BENEFITS IN INCREASING EMPLOYEE ENGAGEMENT

Employers are continuously seeking for new ways to stimulate employees to invest more effort into their work and make them more engaged, efficient and enthusiastic in their job positions. Engaged employees are highly effective, which can lead to a competitive advantage for the whole organization. In order to improve employee engagement, organisations can use several mechanisms, including material rewards in the form of pay and benefits as well as intrinsic rewards. This research confirmed some statistically significant differences among levels of employee engagement and perceptions about employee benefits, namely benefits satisfaction and satisfaction with resources spent on benefits. Such finding supports the claim that benefits can have an important role in achieving employee engagement. It is in firms' best interest to communicate to employees all available benefits as well as increase awareness about their costs among employees.