Why a comprehensive employee benefits package helps all aspects of a business
Employee benefits are more than just a little add-on for employees - they're an essential part of building a workplace culture that really looks after its staff.
Benefits can be used to provide support in a wide range of ways - from employee health and wellbeing to support with childcare costs, buying a new car, or even just everyday savings on shopping and leisure. These are all things that make employees' lives that little bit easier, their time at work that little bit better.
Let's take a look at the four biggest reasons why all organisations should be offering benefits to their staff.
Although the UK's economy has been up and down over the past few years, changing employment figures means the recruitment market is starting to favour employees over employers. With more jobs available, candidates can be more selective about where they work, and this means that when it comes to securing qualified employees that are highly skilled, dedicated, and will bring strength to a business, companies need to do more to stand-out and make their business a competitive one.
A strong benefits package will help to attract high-quality employees, and can be a crucial factor for potential candidates in deciding whether to join a company. It also encourages talk among peers outside of work, which is useful for attracting new recruits. It's all about making your organisation look like a better place for people to come and work - because it actually is!
2. Retain talent
It costs more to find a new employee than it does to keep an old one. Staff turnover also causes disruption and loss of continuity for co-workers and customers alike, so once companies have great employees on board, the focus turns to how to keep them from jumping ship.
As many organisations now offer a benefits package, employees no longer just compare salaries when considering a new position - they review an offer in its entirety and weigh up its total value. An above-average employee benefits package can go a long way in keeping employees at a business.
These benefits also become essential parts of an employee's lives, with people coming to rely on them. In time, they become things your employees won't want to leave behind. A long-term arrangement to purchase a car through their employer, for example, gives someone much more to stick around for.
3. Boost morale, engagement and productivity
Benefits are a highly emotive thing. Providing staff with the ability to enjoy activities that are important to them, or help them save money in their personal lives, shows how much they're valued. This is endlessly preferable to a small (taxed!) cash bonus that's expensive for the business and underwhelming for the employee.
Benefits can make a real contribution to lifestyle choices or leisure activities – creating that all important feel-good factor which boosts morale, engagement and productivity, and inspires loyalty. Unhappy employees are unlikely to be engaged or productive employees, and this will have a knock-on effect for the prospects of a business.
4. Savings for employers and employees
Benefits that operate via salary sacrifice or net pay deduction, where the employee gives up part of their salary in return for a non-cash benefit such as childcare vouchers or annual leave purchase schemes, can be financially beneficial for both employer and employee. Not only do they help employees spread the cost of big purchases, they may also be able to benefit from reduced tax and NI contributions - as may their employers.
A competitive employee benefits package has significant power not only to attract the best, but also to retain the best. Employers who value their staff today will be those that benefit tomorrow.
If you want to find out more about employee benefits, and how they can make a huge impact on employee wellbeing, click below to download our free ebook - and don't hesitate to contact us if you have any questions!