Employee benefits are one of the methods used by employers to entice new employees and to maintain loyalty among present employees. The main ones being a company pension scheme, life assurance and medical health insurance. Innovative employee benefits can give employers a significant edge in attracting new employees. Many employers look towards benefit schemes for a way to encourage greater productivity from their workforce. In many cases this is successful; it has been shown, for example, that offering healthcare benefits can reduce sickness absence while simultaneously increasing the productivity of staff while they are at work.
A survey at the end of 2017 by one of the large employee benefits companies had the following results:
- 85% of employees are more likely to work for employers who offer clearly labelled benefits
- This rises to 94% of workers aged 25-34
- A third (31%) wish their employer would provide more information about their benefits
- A fifth (19%) received information about their benefits when they first joined, but never again after that
- Employers are seen as most responsible for ensuring employee benefits are clearly understood
The results show that clearer employee benefit information is needed for companies to win the battle to recruit and retain staff.
One of the major advantages for employers is an easing of their cash flow. This is particularly the case if you introduce a salary sacrifice system, whereby employees give up a portion of their salary in return for other benefits.
Some of the advantages of accepting a benefits scheme for an employee are obvious. In the first instance, if the benefits are attractive then you will have access to useful offerings such as a pension scheme or company car without having to make these arrangements themselves. This is of particular use for utilities such as mobile phones which can be provided as a non-cash benefit by an employer.
Incentives and Benefits
Incentives and benefits are frequently lumped together, whereas they are, in reality, two separate tools. A benefit scheme provides non-salary remuneration for employees, a certain level of which will be made available regardless of the performance of each member of staff. For example, a company pension scheme is an employee benefit and would generally be offered to every employee regardless of whether or not they met their sales targets. In contrast an incentives scheme often offers extra remuneration on top of a salary and other benefits for those employees who fulfil certain requirements.
Employee benefits are an important part of any company’s offering to their prospective or existing staff. There can be numerous advantages to establishing an employee benefits scheme, not only for the employee, who can receive useful non-cash benefits in addition to, or in place of, part of their salary, but also for employers who can bulk out their salary offering with additional benefits to their staff.
What Counts as Standard Employee Benefits?
There are a few benefits that employees will expect as standard. These benefits are usually seen as priority and can include pensions, medical, dental and life insurance and company car schemes. Aside from priority benefits a number of companies will add extra enticements. These employee benefits can include discretionary bonuses, performance related bonuses, profit sharing, gym memberships and company product’s discount schemes. Employers who then go the extra mile above standard employee benefits packages may be looking at some extra loyal employees.
Benefits of Implementing Innovative Employee Benefits
Wise employers know that to attract the best employees they need to offer something that competitors do not. Innovative employee benefits are one way of beating the competition when it comes to attracting the best candidates for the job. Competition for first rate professionals can be fierce and in many cases an excellent salary just isn’t enough. Employees expect a full range of employee benefits but employers who go above and beyond the run of the mill employee benefits can attract employees and keep them for longer.
What Are Innovative Employee Benefits?
Innovative employee benefits are not the normal or standard benefits. They can sometimes be seen as unusual but can actually be very worthwhile. Anything that can boost a salary or can be viewed as a bonus can be seen as an employee benefit and can attract employees to a company.
Examples of Innovative Employee Benefits
Employers and HR departments can get creative and come up with some winning employee benefits. Here are some examples:
- Flexible working hours
2.Childcare vouchers and on site crèches
3.Benefits that include use by members and their family
4.Transportation schemes including travel passes, company car allowance and rent a bike scheme
5.Subsidised meals at staff canteens or food vouchers
6.Telecommuting and working from home options
7.Holiday pay funds where employee contributions are exempt from National Insurance contributions
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