How employee benefits can help improve productivity in business
Posted Nov 9th, 2015 by Expedite | 0 comments
“Success in business is all about people, people, people. Whatever industry a company is in, its employees are its biggest competitive advantage.”
- Richard Branson, an English businessman and founder of Virgin Group.Employee benefits are the primary tools by which employers attract and retain qualified personnel for organisations. As an employer, offering benefits to your employees is the best way to keep them from jumping ship. Except for the wages and salaries, voluntarily provide a variety of benefit packages to see your business kick-start its growth. However, the reasons for offering such benefits can vary – from a desire to be competitive in the relevant market to a genuine concern for the welfare of employees. No matter what the reason is, offering benefits can add significantly to the overall value of your employees’ package (an additional 20-40%) of their salary. In addition, ensuring that your employees are happy and productive is important to the success of your business.
The top five benefits are as follows:
- Final Salary Pension – it’s essential for any organisation to incorporate pension plans - this helps in making retirement planning less complicated for your employees.
- Healthcare – a study conducted by UK healthcare reported that in 2015, ‘the average number of sick leave taken was 6.9 per member of staff, costing an average of 554 pounds per annum per employee.’ In order to cover for those who are absent and the cost of hiring extra staff for the same reason, the company will have to pay from its pocket. In such cases, health cash plans as benefits could have a dramatic effect on a company’s productivity.
- Flexible working schemes – the advantages to businesses include holding onto valuable staff, having a wider talent pool, reducing absenteeism and increasing commitment.
- Holiday entitlement of 21 days or over – give your employees a written statement on their rights to holidays, including public holidays and holiday pay.
- Gym membership – it’s a great way for you to give your employees a tangible benefit.
- Child day care – Often, new parents find it difficult to work full time due to high costs of childcare. If you don’t want to lose your highly skilled and valued employees, then consider offering childcare facilities either in-house or through a local nursery.
- Conveyance – if your employees spend a large proportion of their working life on the move, then provide a company car. It saves travel costs and the same car can be utilised by the company when the need arises.
- Subsidised food and drink – most employees spend a large chunk of their salaries on snacks, coffee, water and lunch. If you can reduce this cost, it is a major bargaining tool for them.
Involving employees in benefits and incentivesAlthough consulting staff may cost you time and manpower, it will save your company money in the future. Some companies hire benefits consultants; but if you’re looking for a budget-friendly option, then ask your employees directly about their most desired benefits and incentives.
Employee benefits by ageA recent survey by Aon Consulting reported long term sick leave pay as the top employee benefit for those aged 55 and above. Interestingly, around 55% of workers aged 35 and below rather valued gym membership and employee counselling as a major employee benefit. But, the salary package is the most popular benefit of all, as almost half of all UK workers are prepared to sacrifice their benefits to increase their pay. Some of the other popular employee benefits include:
- Flexible working and work-from-home options
- Financial bonuses, including profit sharing and performance-related pay
- Extra holiday entitlement
- Medical insurance benefits
- Company car
- Subsidised employee canteens
- Long-term career training and paid education