How can you motivate your existing employees and entice new skilled workers to join your company?
An employee benefits package can play a huge part in the success of any business, in any industry – this has become particularly true since the Coronavirus pandemic and changes in working patterns across the UK. According to a recent report by the professional body for HR and people development, CIPD, only 41% of UK workers feel satisfied with their benefits.
There are many differing stresses and pressures when it comes to working conditions, with the typical attribute being the day-to-day workload issues, but it is not always the job itself that causes people to experience stress at work.
Other additional influences such as financial concerns, mental and physical health issues and family/carer responsibilities all play a role in contributing to and enhancing workplace stress.
Whilst these problems cannot be directly controlled within a work environment, employers can provide assistance and support to their employees in managing certain issues with a comprehensive employee benefits package.
A good employee benefits package can:
- Improve workplace morale
- Reduce stress and staff absences
- Boost productivity
- Help set the tone for your company’s internal values and ethos
- Reduce staff turnover by helping to retain existing staff
- Make recruiting highly skilled workers easier.
Leading on from our recent article asking the question of whether your workplace pension scheme is still fit for purpose, providing a pension is now an obligation and seen as the bare minimum in employee benefits. There are additional benefits highly skilled workers may now look for when reviewing their options and the market which can typically be split into the following categories:
- Paid benefits (typically insurance)
- Additional perks and benefits that are low-cost or possibly free to implement (for example, ‘flexi-time’ and holiday).
Group Income Protection (GIP)
Group Income Protection is an insurance policy purchased by an employer that will protect the finances of their employees, if an illness or injury prevents them from working.
The benefits employees receive is relative to their salary, typically on a percentage of their pre-tax earnings. This will ordinarily be paid out monthly after an initial waiting period, usually once your company’s sick pay policy would stop paying out.
Group Health Insurance/Private Medical Insurance
Group Health Insurance allows your employees to receive certain medical treatments privately. If they receive a diagnosis and referral for treatment from their GP, they will be able to use their referral to receive their treatment in a private facility and from a private practitioner, which is usually faster access than through the NHS.
Group Health Insurance is designed to cover the cost of private treatment for any acute health problems, whilst employees may be able to get cover for pre-existing conditions, unlike personal medical insurance policies. This is providing the group covered by the scheme is large enough and the right medical underwriting method is chosen.
Group Life Insurance/Death in Service
Group Life Insurance is a company organised group insurance scheme that usually promises a lump sum to an employee’s family if they die or develop a terminal illness whilst employed by the company.
Group Life Insurance policies usually pay out a multiple of the employee’s annual salary, but can also be set at a flat benefit rate. It is up to the employer to decide how much cover they would like to give.
The following alternative benefits, whilst being slightly rarer, can be seen to be very valuable to employees and potential new recruits:
- Increased holiday allowances
- Childcare resources
- Employee education opportunities
- Healthy living benefits
- Increased pension contributions
- Gifts and rewards
Employee engagement and communication
Any employee benefit package can be enhanced or limited by the type and level of communication to the employees. Better understanding and access to these benefits will only encourage the employees to make effective use of them, and mean the money and time spent to implement the policies is worthwhile.
This could range from ‘Welcome Packs’ for new employees to regular meetings/seminars to discuss the benefits with the employees. In addition, it may be a consideration to utilise benefit platforms for ease of access in making benefit selections and assisting with information and understanding.
If you wish to motivate your existing employees and/or entice new skilled workers to your company and wish to either implement a new benefit package or review an existing one, please contact Kreston Reeves Financial Planning, part of the Craven Street Wealth group on +44 (0)330 124 1399 or by completing our online enquiry form.
The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.
You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.
Kreston Reeves Financial Planning Limited, Independent Financial Advisers. Authorised and regulated by the Financial Conduct Authority.
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