It is generally recognised that staff are your most important asset but, with the current restriction on salaries and the need to reduce costs, it may not be possible to give pay rises. Consequently, recruiting skilled staff can be difficult and retaining and motivating staff can also be challenging.
How do you address this issue without spending substantial sums or increasing your staff salary costs?
A simple solution is to introduce a range of employee benefits that can assist employees with everyday costs such as childcare and travel to work.
Choosing the right employee benefits
Getting the employee benefits offering right shows that you value and appreciate your employees. An employee survey asking about the type of benefits they value is a good starting point. It is likely that a good mix of benefits that support your employee’s everyday costs, health and financial well being can also promote staff engagement and motivation.
The introduction of a beneficial employee benefits package in addition to standard salary is one of the most effective recruitment and retention tactics. Therefore, it is worth investing some time and resources to develop a valuable employee benefits offering.
The most popular employee benefits
Typically, the most popular benefits are childcare vouchers and cycle to work schemes. However, there are many other benefits that are becoming increasingly popular with employers and employees alike.
- Car leasing
A scheme that allows employees to lease a brand new, fully insured and maintained car over a two or three-year period
- Bus and/or train season tickets
Discounted annual bus/train season tickets
- Health screening
Opportunity for employees to access a comprehensive range of medical test and screening.
Opportunity to undertake training to enhance or improve work-related skills.
- Shopping vouchers
Discounted local and national shopping vouchers.
- Financial wellbeing
Opportunity for employees to access affordable loans that can be paid direct from pay
- LGPS Shared Cost Additional Voluntary Contributions (AVCs)
Opportunity for employees to increase their pension benefits at retirement
An effective way to provide employee benefits is through salary sacrifice arrangements. Salary sacrifice is a legitimate and popular method used by employers to provide benefits to employees. It involves an employee’s agreement to sacrifice part of their gross income in return for an employer’s agreement to provide a benefit such as childcare vouchers.
Download the full article which includes further details on:
- benefits provided through salary sacrifice;
- shared cost additional voluntary contributions scheme;
- what will salary sacrifice or net deduction arrangements cost? and
- the next steps and key considerations.