Workplace benefits are also known as employee benefits and are a great way to recognize and reward your employees for their hard work and commitment. However, do not think they only benefit employees. In an increasingly competitive world to recruit the best people, an attractive workplace benefits package could be the difference between gaining and retaining the talent your business needs to push the company forward, and help avoid an endless cycle of hiring and training. The company benefits of a great employee benefits package should not be underestimated.
Using workplace benefits to gain staff
It is a competitive world out there, and employees are a business’s greatest asset. A good team can lead your business into success. But a lack of one can do just the opposite. That is why it’s important to have a competitive workplace benefits package to attract the best staff. Candidates are no longer looking for just the salary to compare jobs. Benefits can be treated as a business expense and therefore offset against corporation tax and often an employee’s perception of the value of the benefits is higher than business’s actual cost after discounts and tax-relief.
Using workplace benefits to retain staff
We all know the costs involved with recruiting new staff when someone leaves. Not only is there the cost of the recruitment agents, but the interview process costs, the shortfall in staff in the interim, and training of new staff, which all adds up. Therefore it is important to retain good employees once they have been trained are working for you. Many companies are turning to workplace benefits to help do this. The cost of an employee benefits policy is often lower than many people think. There are savings to be made from lower administrative costs and the benefits offered to employees are often perceived to be of greater value than the actual monetary cost to the company.
What benefits are available?
A list of the most popular and favourable benefits offered to employees:
Since October 2012 automatic enrolment has seen all employers have to provide a workplace pension scheme by law. At first it was just the larger employers but now the staging dates for smaller employers are being rolled out. While many businesses will now have a workplace pension scheme in place, it is advisable to review this to make sure it is fit for purpose and competitive.
Group life assurance is a life insurance policy taken out by the employer on the lives of their employees. The nominated beneficiaries of the employee receive a tax-free lump sum in the event of their death. It is a popular, well liked and highly valued employee benefits and one which the company can offset as a business expense for corporation tax purposes.
Also known as Private Medical Insurance (PMI) this benefit is designed to cover the costs of private medical care should your employee require it. Whilst individual insurance plans can be fairly costly, the benefit of a ‘group scheme’ is it costs less than arranging medical cover on an individual basis and can be extended to cover employees’ family members.
Income protection is designed for employees who suffer from a long term illness or injury by typically providing an income benefit of between 50% and 75% of an employee’s salary thus easing the burden of this cost for the employer and protecting income for the employee. Many providers also provide a range of rehabilitation services to help staff return to work as soon as possible.