Employment in the UK has not been typical in recent years. A number of concurrent crises, medical and economic, have altered the shape of employment indelibly, and inspired key shifts in the way we work. The pressure of these crises has also led to workers re-evaluating their own position, seemingly increasing worker willingness to change roles for better prospects. Here, the importance of robust recompense becomes clear – with benefits a central aspect.
The Perks of the Job
But what constitutes an employee benefit, exactly? It is a wide field, comprising various perks from the large to the small. A business might offer company cars as part of the job, enabling workers to access private transport without having to manage lease, insurance or maintenance costs. Working for an organisation might entitle a worker to discounts with other businesses; an Amazon NHS discount is available to health workers via a third-party business, representing a less direct form of perk.
Employee benefits might also relate directly to the terms of their contract. They might be given the opportunity to choose their own working hours, or choose how many hours of the week they work from home. They might be afforded regular bonuses based on either personal or business performance. But, however big or small, these benefits can represent a significant cost to a given business. So why should businesses provide them?
Productivity Metrics
For one, it has been proven that employee benefits have a hand in employee productivity. A recent report publishing by the Association of British Insurers found that a supermajority (60%) of small businesses in the UK recognised productivity benefits to offering perks centring around health and wellbeing – whether private insurance or access to counselling.
Employee Attitudes and Retention
Generally speaking, the offering of additional benefits beyond a competitive salary also has a strong impact on employee happiness. The happier an employee, the less likely they are to seek other roles or alternative career paths. This has two main benefits, the first being that increased longevity leads to better staff cohesion and performance.
The second is that staff turnover is costly; the Chartered Institute of Personnel Development outlines the many elements that factor in replacing a leaving employee, from recruitment and administration to reduced initial productivity.
Talent and Development
Not only can the right employee benefits inspire loyalty and longevity in your staff cohort, but it can also attract high-quality candidates from the hiring pool when it comes time to expand your operation. Today’s workers are more switched-on as to their worth than ever before, and much less likely to settle for a basic employee package – as evidenced by recent employment data.
With a strong and attractive benefits package, including the potential for a company car or percentage bonuses, you are more likely to bring in strong candidates for interview. This gives your business the best possible opportunity to facilitate growth.
Photo credits: Coworking London