As today’s war for talent rages on, business leaders recognise the role employee benefits and employee engagement play in the modern-day workplace. People are your greatest asset, so it makes sense to provide an environment that maximises workplace satisfaction, well-being and performance. Why is it that more companies don’t implement them?
Many of us now encounter employee benefits in one way or another, but there is a difference between the basic benefits and those that can really make a difference. Above all, employee benefits can be a great way to improve staff morale, boost staff engagement and help to motivate a happier and more productive workforce.
So what are employee benefits?
In summary, employee benefits are extra incentives provided by employers, in addition to a worker’s normal salary or wages.
Designed to help promote employee satisfaction, recognise and reward your team, and improve employee well-being, they can include the following:
- Group Income Protection – Financial and rehabilitation support when employees are unable to work because of illness or injury
- Retail Rewards – A range of high street offers and discounts
- Group Life Assurance – Guarantees a pay-out upon death to the decease’s estate
- Employee Assistance Programme – Provides support to employees to overcome life’s physical, mental and financial challenges
- Group Critical Illness Cover- Provides a tax-free lump sum when diagnosed with a defined serious illness or disability
- Health Cash Plans – Helps to cover the cost of routine healthcare
- Group Private Medical Insurance – Covers the cost of eligible medical treatment in a private facility or ward
- Group Dental Insurance Plan – Helps to cover the cost of routine dental care
- Workplace Pension – Employers must provide a workplace pension scheme for eligible staff
Although some benefits are legally required, for example workplace pension, others are offered as employment enhancements or perks that are used to attract and retain employees. Many have the additional benefit of offering some tangible benefits for employers also – more often than not, happier employees are more productive employees.
Who are employee benefits for?
To sum up, employee benefits are for everybody. Every employee is entitled to some form of employee benefits. It is sometimes the case that more senior staff or key staff may sometimes have access to an improved benefits package. After all, it makes great business sense to look after your key people.
Whilst each company will have different policies on the benefits they cover, all UK workers are currently entitled to the following:
- Workplace pension – This involves an employer helping to set up and contribute to funding their employee’s retirement.
- Holiday allowance – Almost all workers in the UK are legally entitled to 5.6 weeks’ paid holiday each year. This is known as statutory leave entitlement and can include bank holidays.
What is the purpose of employee benefits?
Whilst the trend is shifting, employee benefits are sometimes questioned for their long-term purpose. In reality, employee benefits are beneficial to both employees and employers. Employees can:
- Save money and add to their disposable income
- Improve their workplace wellbeing
- Maintain a better work life balance
- Provides peace of mind and reassurance for employees and their loved ones
- Offer more competitive and attractive benefits package to help them attract and retain the best staff
- Demonstrate a genuine care for staff welfare
- Reassure employees that their efforts in the workplace really count
- Support their employees boosting morale and improve company culture
- Benefit from a more productive workforce
When the case for employee benefits are that good, it’s hard to make a case for why you wouldn’t introduce a reward and recognition programme into your business.
Finally, find out more about your employee benefits options by contacting Steve Hope, Employee Benefits Director.