Corporate Welfare: how important is it today for employees and Brand Reputation?

Marketing Tips | Corporate Welfare

Someone once said that the first form of advertising is that made by employees. But how many companies actually invest in corporate welfare?

It is becoming increasingly common to hear about a brand or company not so much for its products or services but for the benefits it offers its employees, such as smart-working, company conventions, meal vouchers, welfare vouchers and various office facilities. It is impossible not to mention Google, famous for its campus-cities where it offers a series of facilities that make the working environment more pleasant and stimulating for employees. Some examples?

• Free food and drinks: Google offers free meals, snacks and drinks throughout the day, including coffee, tea, juice, fruit, yoghurt, and dishes prepared by in-house chefs. Larger campuses also have full-fledged restaurants and cafeterias on site;

• Gyms and fitness spaces: Many Google offices have modern gyms and physical activity spaces, such as yoga, Pilates and even massage classes that can be booked at any time of the day and not just during the lunch break;

• Relaxation spaces: Relaxation areas, including break rooms, board games and video games, meditation areas and green spaces, are common to help employees relax and switch off, thus avoiding burnout;

• Medical care and wellness: In some locations, Google also offers on-site health care, including basic medical examinations, check-ups, and psychological support for employees.

• Transport services: Many Google offices offer free transport services, such as company shuttles, to facilitate home-to-work travel.

• Areas for collaborative work: Offices are designed to encourage collaboration, with common spaces, meeting rooms equipped with modern technology and shared desks, where employees can work in teams or individually.

• Family support: Google also offers benefits such as parental leave, daycare support and other family-friendly policies.

• Corporate activities and events: social events, team-building activities, internal conferences, and even volunteer programmes to promote employee interaction and involvement.

• Creative and innovative spaces: Some offices are very creatively designed, with stimulating environments that foster freedom and innovation, such as themed rooms, games, and unique furniture.

In general, Google's idea is to create a working environment that not only stimulates productivity, but also makes work itself more enjoyable and balanced.

However, we also have other examples that are closer to us and that have actually pursued the same principles well before Google. Corporate welfare in Italy, in fact, has historical roots dating back to the late 19th and early 20th century, when some companies began to understand the importance of taking care of their employees in order to improve productivity and social welfare. A famous example in this sense is the model adopted by Crespi d'Adda.

Picture of Crespi D'Adda. Credits https://villaggiocrespi.it/cosa-e-crespi-d-adda-sito-unesco/

Crespi d'Adda is a small industrial town in the province of Bergamo that was built around the Crespi Cotton Mill, one of the most important cotton factories of the time. The distinctive feature of this business model is that the factory's founder, Cristoforo Crespi, created a model community for his workers, which included many of the features of ante litteram corporate welfare including

1. Housing for employees: The company built houses for workers and their families, creating a small workers' village. The houses were well organised, with adequate services and facilities to improve the quality of life for the workers.

   
   

2. Health services and social assistance: Crespi d'Adda provided a health care system for workers, including a company clinic and infirmary. The idea was to guarantee good health for employees to avoid illness and ensure productivity.

   
   

3. Schools and education: The company had also built schools for the children of workers, with the aim of ensuring a good education for children. In this way, Crespi not only improved workers' conditions but also contributed to their future by promoting education.

   
   

4. Religious temples and cultural activities: The company also built churches and cultural spaces where workers could socialise and participate in religious or cultural events.

   
   

5. Facilities and infrastructure: In addition to housing, public facilities such as a market, theatre and other communal spaces were built to entertain and serve the working-class community. This created an environment where workers could find a more balanced and dignified life compared to the harsh working conditions that were common in many other factories of the time.

   
   

6. Leisure and sport: Crespi d'Adda also offered recreational and sporting activities, such as a gymnasium and a sports field, where employees could play sports and recreate during their free time.

If we think that all this goes back over a century, one would think that it is superfluous to talk about welfare today in 2025. But no... the latest report of the Welfare Observatory* conducted by Edenred Italy shows that 58% of companies have not activated any welfare instrument for their employees, not even meal vouchers. In fact, there are many companies, even large ones, that remain anchored to today's anachronistic management models, in which the employee is not considered a resource to be rewarded, retained and attracted in terms of generational change.

Regardless of the business model one intends to apply, a non-negligible factor is that the new generations of workers pay extreme attention to work-life balance and are not willing to compromise. In fact, the Welfare Observatory shows that 7 out of 10 workers would never give up meal vouchers and welfare plans. Is it still relevant, then, to maintain traditional models? For us the answer is clear, which is why we are developing a section dedicated to internal marketing in order to guide companies towards a new approach capable of attracting more qualified and more motivated workers while at the same time improving performance.

Good publicity and brand reputation then become a natural consequence of this approach and companies that have embraced this concept know this well.

A well-structured corporate welfare plan can have an extremely positive impact on a company's brand reputation. Today, companies are increasingly under the magnifying glass with regard to their social responsibility and the way they treat their employees. An effective welfare programme not only improves the well-being of employees, but can also bring numerous benefits to a company's reputation and image.

Here are some of the main benefits of a welfare plan for a company's brand reputation:

1. Increased trust from employees and potential talent

A good corporate welfare plan shows that the company really cares about the well-being of its employees. This creates a more positive working environment and promotes trust. Employees who feel supported, both professionally and personally, tend to be more loyal and motivated, reducing turnover and increasing productivity.

For a company, this is also a positive signal to the labour market: a good reputation as an employer helps attract top talent, who are increasingly sensitive to issues such as work-life balance, mental and physical health and family support.

2.Positioning as a socially responsible company (CSR)

Companies that invest in corporate welfare demonstrate corporate social responsibility (CSR). In a world increasingly aware of ethical and social issues, companies that show responsibility towards their employees, families and local community gain a positive reputation. Being perceived as a company that has a positive impact on society helps to differentiate from competitors and build a stronger image.

3. Improved customer satisfaction and loyalty

Customers are increasingly sensitive to corporate values and practices, and often prefer to buy from companies that are committed to the welfare of their employees. A good welfare plan can positively influence consumer perceptions, as it makes them feel more connected to a company that is humane and responsible.

Welfare policies, if well communicated, can be used in marketing strategies to attract and retain customers, highlighting the company's efforts to create a healthier and more sustainable working environment.

4.Improved public image and visibility

Companies that adopt corporate welfare plans often gain public recognition through awards and mentions for their social policies, further enhancing their visibility and reputation in the sector. Being recognised as a “good employer” or for adopting innovative welfare practices can attract positive media attention and strengthen brand awareness.

5. Positive company culture and impact on external relations

An effective welfare plan contributes to building a positive company culture, which can also be perceived externally. A healthy and happy working environment is also reflected in the company's external relations: motivated employees are often also the best brand ambassadors, speaking well of the company in public and on social media, thus creating positive word-of-mouth.

Furthermore, a company with a strong and inclusive culture has an easier time dealing with crises and unforeseen events, preserving its reputation even in difficult times.

6. More attractive to investors

Companies that are committed to the welfare of their employees may also be more attractive to investors. Investors are more inclined to support companies that have a good reputation, as they tend to be more solid in the long run. Good corporate welfare can be seen as a sign of stability and sustainability of the company, which knows how to manage human capital effectively.

7. Strengthening corporate competitiveness

A well-implemented welfare plan not only improves employee motivation and productivity, but also helps to reduce absenteeism and turnover. In this way, the company saves on employee replacement costs and an environment is created that rewards talent and commitment. This positive impact on the business is also reflected in the perception that consumers, the media and other stakeholders have of the company.

8. Adaptation to social and regulatory changes

We are not hiding behind a finger, often behind certain welfare choices there are reasons related to fiscal and reputational advantages. But even if this is the case, why not develop a win-win plan that is beneficial to both parties?

Good corporate welfare today is not just a competitive advantage, but a real strategic necessity.

*Edenred Welfare Observatory- report 2024 https://www.edenred.it/welfare-aziendale/osservatorio-welfare-aziendale/