The old expression goes: “You get more flies with honey than with vinegar”.
Building a rich and inclusive workspace with a diverse range of employee benefits can be a valuable step towards retaining your most talented staff in the face of an increasingly competitive job market.
Business in the News reports that 70% of UK employees considered a career change last year.
The pursuit of new workplace opportunities for many UK workers comes as many businesses struggle to recruit talented and experienced employees. The Guardian report that 40% of businesses with 10 or more staff are facing recruitment issues and labour shortages.
So, could ensuring your current employees receive a comprehensive benefits package help retain your most talented staff and aid in the recruitment of others?
Read on to discover five ways to boost your benefits programme and keep your workforce happy.
1. Consider matching employee pension contributions to boost their retirement savings
Under current workplace pension auto-enrolment rules, the minimum pension contribution is 8%, which is made up of a 5% employee contribution (including tax relief) and a 3% employer contribution.
The funds your employees save across their careers into their workplace pension schemes are likely to form the backbone of their retirement plans.
If your employee increases their personal contributions, it might be worth following suit to provide them with an additional boost and to reassure them that you have their long-term wellbeing in mind.
An increase in contributions could have significant financial benefits for your employees in the long term and the value of their fund is likely to grow substantially over time.
Working with LEBC could help you maximise your employee’s pension benefits and help retain your key workers.
2. Opt for a corporate health cash plan
Health issues can negatively affect your employee’s productivity and may lead to absenteeism if your staff require sick leave.
Although many of their healthcare needs will be provided for by the NHS, wait times can be lengthy and some conditions or treatments come with an additional cost.
A corporate health cash plan can provide your employees with easy access to a range of care opportunities such as:
These services can be crucial in your employee’s time of need and help them overcome their issues quickly.
They can also reduce associated costs, which can be a welcome relief for your staff, especially during a cost of living crisis.
3. Review increasing employee’s holiday entitlements after each milestone year of service
The simple expression “work to live” sums up the driving factor behind many employees’ desire to work. They will have personal interests and a life they wish to live. Their hard work helps them unlock that.
Most workers (working at least a 5-day week) must receive at least 28 days’ paid annual leave each year, the equivalent of 5.6 weeks of holiday. However, many employees consider this a given.
So, rewarding employee loyalty and celebrating staff reaching milestones at your firm such as 5, 10, or 20 years of service with a boost to their holiday entitlements could demonstrate how much you value their efforts.
You might also decide to give your employees their birthday as an additional day of annual leave. It’ll also allow them more time to enjoy the things they love, returning to work happier and more fulfilled.
4. Offer a salary sacrifice option to employees who could benefit from the tax relief
Most non-cash benefits you can offer employees require you to work out the equivalent value of what they’re receiving and pay the relevant amount of tax or National Insurance (NI) on it.
Beyond that, there are some non-cash benefits that do not need to be reported to HMRC, such as:
The most popular salary sacrifice option available relates to additional employer pension contributions.
This agreement would see your employee give up part of their salary or bonus in exchange for you paying the value directly into their pension.
While personal pension payments are typically free from Income Tax, they are usually subject to National Insurance contributions (NICs). However, if a salary sacrifice is used, both employee and employer save on NICs. The savings can be substantial.
5. Evaluate the benefits of introducing further workplace flexibility or a four-day work week
The Institute of Directors reports that 88% of employees would consider a lower salary if flexible work hours were available. It can be a huge boost for employee welfare, especially for those who have requirements outside of work such as childcare or looking after a loved one.
Flexible work schedules, hybrid working conditions, and a four-day work week regularly rank as the most desired workplace perks among surveyed workers.
According to Business Insider, a global study on the four-day week found it was a resounding success, with participating companies reporting a reduction in employee burnout and greater revenues.
Working alongside LEBC to develop an optimised workplace schedule and system for your employees could see a significant boost to your staff’s wellbeing and potentially reduce operational costs for your business as whole.
Get in touch
The job market is incredibly challenging at the moment with talented employees holding a lot of power due to demand. It is important to stand out from the competition by optimising the quality of your staff perks and ensure talented team members are retained.
For advice on the best next steps and ways to boost your benefits programme, email email@example.com or call us on 0800 055 6585.
A pension is a long term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.The tax treatment of pensions in general and tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.Back to News & Views