Whether it’s a 10% discount off high-street stores or a childcare voucher, employee benefits can not only benefit your staff, but your business too.
AICPA found that 80% of employees would keep a job with benefits rather than take one that offered more pay and no benefits.
Eye opening! 👀
Here are a few reasons how introducing them can make a big impact on the future of your company and save you a few quid in the process too.
Pay less tax
One of the most satisfying benefits of introducing employee perks is the fact that you can pay less tax via a salary sacrifice scheme.
By getting your team to part ways with a percentage of their salary in exchange for a non-cash benefit, your business will benefit.
These non-cash benefits can include car schemes, gym memberships or travelcards.
How does that work?
It’s relatively simple.
By paying out lower wages to your employees, you won’t have to contribute as much tax and National Insurance.
However, you should be aware that the government have introduced an extra income tax for particular salary sacrifice benefits including company cars and mobile phone contracts.
According to BMA, the benefits you can access include:
– Childcare vouchers
– Cycle to work scheme
– Care hire/lease scheme
– On-site nurseries
– Home computers
– Car parking
– Gym membership
– Pre-paid store cards
– Personal learning
Reduce staff turnover
Not only are perks an ideal way to incentivise hard work, but you’ll often create a healthy work culture and environment as well.
According to Unum, 66% of employees say that they’d probably stay with a business that offered great benefits.
Food for thought? 🍔🧠
Employment benefits act as a statement of intent and a gesture to let staff know that you value their contribution.
Whether that’s a free gym membership or a team day out at the races, it can help to reduce an unwanted revolving door culture from developing within your business.
Financially, you can also save a lot of money and improve employee satisfaction rates by offering them the chance to invest a fraction of their wages into a workplace ISA, Share Incentive Plans (SIPs) or Save As You Earn (SAYE).
For the employee, it gives them the chance to earn more money off the back of their hard work.
So these employees should work harder to achieve results for your business as they will earn a bonus on top of their wages.
In return, you’ll see better productivity, stronger results and you’ll keep staff happier.
You can find out more about these free schemes by visiting the Money Advice Service.
If you’re working with a smaller budget, try introducing cost-friendly benefits like half-days on a Friday, communal music in the office and beer Friday.
All of these ideas will also help you drastically improve the work culture.
A more streamlined recruitment process
If you introduce employee benefits and perks, you’ll understandably make the recruitment process a lot easier.
Life comes with a lot of complications today, so it’s important for a business to offer a dynamic and flexible approach for their employees to utilise.
So when you’re looking to fill a vacancy, employees will naturally be more drawn to the company with the better offering.
A key example is to promote flexible working hours and giving them the chance to pay for more holiday.
In fact, 83% of professionals in the recruitment industry believe that employee benefits simplify the whole process altogether.
As a result, a shorter recruitment campaign means less money spent on advertising and resources wasted.
This should also eradicate the need to outsource the job spec to multiple recruitment agencies – again, saving you money.
Employee benefits may come with a price, but the positives far outweigh the negatives.
As well as creating a strong workplace environment for your employees to thrive in, they can also free up more funds within your business.
This extra cash flow could be used for growing the business or even adding to your current list of employee benefits.
The size of your business is irrelevant.
Simply find a few nice perks that fit your budget and have your employees’ best interests at heart.
Delivering a substantial employee benefits package will keep your team engaged, motivated and working coherently.
As a starting point, try asking your employees what benefits would most appeal to them.
This way, at least you know that you’re offering the right ones for the next year or two.
For further inspiration, check out our previous blog: ‘The 10 Best Employee Incentive Ideas’.
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