By Martin Sjögren, Account Executive Public Sector, Benifex
As an Account Executive, I often meet organizations grappling with the same question: how do we create a workplace that delivers results today and remains sustainable over time?
We frequently talk about talent shortages, employer branding, and engagement. But at its core, this is about something bigger – the relationship between employer and employee. In a time when the labor market is more fluid, expectations are higher and working lives are longer than ever. Offering “just a job” is no longer enough. We need to offer a sustainable whole. And this is where long-term thinking becomes critical.
We are living longer. We are expected to work longer. In fact, many of us may be working until 70. That raises an important question: how do we create workplaces that people can, and want to, be part of over time?
The challenge we cannot ignore
We know that happy and engaged employees are more productive. According to Gallup, they are 17% more productive than their less engaged colleagues. Research from Oxford Saïd Business School also demonstrates a clear link between happiness and performance – happy employees are on average 13% more productive.
And it does not stop there. Organizations with the highest engagement levels achieve 23% higher profitability than those with less engaged teams. Yet, according to the same research, the reality looks like this:
- 12% feel lonely
- 17% feel sad
- 35% feel stressed
- 21% are not engaged on a typical working day (according to our latest Swedish report)
These are not just statistics. They are signals. Signals that something in the employer–employee relationship needs to be strengthened.
The workplace as a relationship
We see the workplace as fundamentally a relationship between employer and employee. That is why we view benefits as more than an offering – they are a way to nurture and develop that relationship.
This is supported by social and economic exchange theory, which holds that benefits serve as a tool to build reciprocity and engagement. A meta-analysis examining how different benefit experiences influence emotional engagement and withdrawal describes the relationship in two distinct ways.
When the relationship is weak, employees feel neither obligation nor desire to engage beyond their core responsibilities. The organization shows little concern for employee well-being beyond contractual pay. The result is lower emotional commitment and a higher risk of withdrawal, such as wanting to leave the organization.
When the relationship is strong, employees feel a deep sense of identification with the employer. Both parties demonstrate care for each other’s well-being. Positive treatment from the organization encourages attitudes and behaviors that support business success. The result is higher engagement, stronger commitment, and reduced risk of withdrawal.
Benefits as a starting point for sustainability
This is where benefits can play a crucial role. When designed thoughtfully and communicated clearly, benefits are perceived as supportive. They increase engagement and satisfaction, strengthen mutual commitment, and meet both material and psychological needs.
The meta-analysis shows that positive benefit experiences strengthen the employer–employee relationship, increasing engagement, and reducing the risk of withdrawal. Negative experiences have the opposite effect. In other words, it is not only about what you offer, but how it is experienced.
Securing talent for the long term
We are living longer and extending our working lives. At the same time, we see rising imbalance, more stress-related absence, and a labor market where talent is scarce.
To attract, recruit, and retain the right skills – and enable more people to work longer – compensation and benefits must form a strategic part of workforce planning.
One key insight stands out: according to a Swedish public sector study, 81% of those who want to work longer say they would be more likely to do so if they received higher pay or better benefits. Fair and relevant compensation is not simply a cost – it is an investment in sustainable performance.
Communication is critical
A benefits package is only as strong as employees’ understanding of it. Clear communication around benefits increases appreciation. And higher appreciation leads to higher engagement. As we established earlier, engaged employees are up to 17% more productive.
From cost to competitive advantage
Benefits are not a side issue. They are part of the psychological contract between employer and employee. Used strategically, they can strengthen employer brand, increase engagement and productivity, reduce turnover, and enable people to work longer in a healthier way.
If we want workplaces that last until 70, we need relationships that do, too. And that starts by recognizing benefits for what they truly are – a powerful lever to create workplaces where people can, want to, and choose to stay and perform.
If you would like to discuss this further, I would be happy to continue the conversation! Contant me here.