Many employers are reluctant to provide sufficient employee benefits to their employees as we are unsure why. A survey by Canada Life Group shows that 26% of employees in the UK do not receive any employee benefits at all – yet research shows that there are so many benefits to offering employee benefits.
In this blog post we would like to share 3 ways of how employee benefits can actually help your business save money;
- Retaining Talent
When you offer your employees perks then they will want to work harder for you and push for better results as they feel appreciated by you as an employer. While this means your business will thrive in numbers, it will also create a healthy environment for employees too and when matched with the employee benefits you will find very high staff retention rates within your workplace.
Research completed by Enum showed that 66% of employees would stay with a company longer if the employer offered great benefits. These benefits could be anything from reduced gym membership, free breakfast, team meals once a month a company pool car or anything else that will benefit your employees.
A good employee benefit that you may want to consider are a workplace ISA, a Share Incentive Plan (known as a SIPs) or a Save As You Earn (known as an SAYE) which gives your employees a chance to save a fraction of their wages and therefore make more of their money and even more so when your business succeeds – this is a great way of pushing your employees to go that extra mile so your business achieves more and they save more.
- Tax Reductions
If you consider a salary sacrifice scheme where an employee parts with a fraction of their salary in exchange for a non-cash benefit you will be able to save a huge sum of money for your business; examples of this include car schemes, gym memberships, childcare and travel cards.
By paying your employees a lower salary you then contribute less tax and national insurance on their behalf. It is important to note that the government have introduced an income tax for some salary sacrifice benefits such as company cars and mobile phone contracts so it is important you look into salary sacrifice schemes for your employees carefully.
Tax free benefits such as ultra-low emission company cars, cycling schemes, pension savings, workplace nurseries and childcare vouchers are all still included, but if you would like to know more about the new salary sacrifice legislations we would recommend you visit bytestart.co.uk
- Attracting Talent
Your employees will love the benefits that you offer as a business and potential new talent will too. When you put out a job advert that includes the employee benefits available to the successful candidate you will see a sharp increase in the top talent applying for a position in your company,
A report showed that 83% of professionals believe that employee benefits make the recruiting process a lot quicker and we personally feel that employee benefits are an integral part in making or breaking your job role for a potential candidate; especially when you are looking to attract a higher quality of talent.
The best recommendation we can make is that you ask your employees what benefits they would like to see from your company and based on this feedback create a comprehensive benefits package that will serve you and your employees for the next few years, at least.