Many business owners – particularly small businesses - shy away from implementing a comprehensive employee benefits scheme. For the most part, it’s because they fear the cost won’t justify the investment.
But employee benefits are so much more than just ‘perks’ and add-ons for employees. When done comprehensively, they become a crucial aspect of building a workplace culture with measurable positive outcomes for employers and employees alike.
Here, we highlight 5 reasons why employers should consider implementing a flexible benefits scheme.
1. Increase Brand Appeal
In today’s job market, candidates can increasingly be more selective about where they work – this means that when it comes to recruiting qualified and competent employees, companies need to stand out and be more competitive than ever.
Comprehensive benefits schemes help attract employees and can be a deciding factor when determining whether or not to accept an offer. With a strong offering, employees are more likely to talk about it outside of work – a useful tool for attracting new talent. Your company seems like a great place to work (because it is!).
2. Improve Retention
As with the above and its value for recruitment, a comprehensive benefits package can be a key driver for retaining talent and encouraging employees to stay with you. This is partly because a strong benefits offering can become an essential part of your employees’ lives, with a combination of discounts and perks on which they rely.
Considering that the average cost of replacing a leaver is upwards of £30,000, it costs less to offer comprehensive benefits than to recruit new talent. Retaining talent translates into significant savings for your organisation.
3. Boost Morale
A comprehensive employee benefits scheme done right often has a larger impact on employee satisfaction and morale than a performance-linked, and taxed, cash bonus.
Providing employees with a range of discounts and offers that they can use on their own time, to do the things they enjoy – and to help them save money while doing them – demonstrates to employees that they are valued and appreciated. It’s an offering that goes further, and costs less, than traditional cash bonuses. Happy employees are more likely to be engaged and productive – a win-win all around!
4. Reduce Sickness and Absence
Particularly if providing a range of offers around wellbeing – such as mental health resources, discounted gym memberships, spa days, vitamins, etc – the knock-on effect for employee health, and therefore absenteeism and sickness, is measurable.
It’s estimated that sickness absences costs a business around £500 per employee per year! By offering discounts and programmes to promote wellbeing, you allow your employees to take an active approach to maintaining their health – the net result is a workforce that is overall healthier and more present.
5. Improve Productivity and Job Performance
By providing a wide range of benefits and perks to suit a broad population of interests and tastes, you give your employees more reason to remain loyal to your company because, simply put, they care more. Employees that care more are more likely to work harder – leading to greater productivity and higher quality in the output.
While offering a comprehensive benefits scheme may seem like a big cost at the beginning, and indeed may incur greater investment at the outset, the long-term advantages to the business outweigh those costs – and contribute to the overall brand and its success. Any business looking to establish a stable workforce and position itself as a leader in employee engagement should consider a comprehensive employee benefits scheme.
Inspired? Sounds like something your company can benefit from? Download our free e-Book on voluntary benefits to find how to foster employee engagement.