THE IMPORTANCE OF EMPLOYEE BENEFITS
Employee benefits are designed to help promote employee satisfaction and well-being. This is usually done through benefits ranging from flexible working hours and child care support right through to dental care and pension schemes. Company perks are an extra incentive provided by employers to attract and retain employees, contributing towards improving well-being and staff engagement across an organisation. However, it wasn’t so long ago that extra benefits were used as a retaining measure or a 'good will gesture' to persuade and encourage employees to continue their work at that organisation.
DO I HAVE TO USE EMPLOYEE BENEFITS?
Whether you operate a small or a large business, there are laws and regulations in place when it comes to employee benefits. These laws are also in place to protect employee health and well-being.
It is a legal requirement within the UK, that workers are entitled to:
- Income protection
- Holiday allowance
- Workplace pension
Glassdoor’s 2015 Employment Confidence Survey underlines that 60% of people state that perks and benefits are a major factor when considering whether to accept or decline a job offer. This survey also found 80% of employees would choose additional benefits or perks over a pay rise. As the cost of living is rising and wages barely moving, it has become a realisation to employees that the use of perks and benefits contribute in promoting their financial wellness.
The purpose of providing employee benefits is to initially increase the economic security of staff members, resulting in, improved worker retention throughout an organisation. This enables employees to save money and add to their disposable income, improve their working well-being and maintain a better work-life balance. This then results in high levels of motivation and engagement produced by employees.
HOW IT BENEFITS YOUR AGENCY
Overall, employee benefits are not just beneficial for employee, employers are also profited by providing employee benefits. When an organisation provides company benefits, employers can recruit and retain the best employees, boost morale and improve company culture and benefit from a more productive workforce. 79% of employees would rather have new and additional benefits available instead of a pay increase. Although a good wage is important, so are benefits. By adding employee benefits to an organisation, it can increase loyalty, focus and productivity, attendance and optimise recruiting efforts.
Employee benefits are also incredibly important for employee loyalty:
- 60% of employees said having a benefits package is important to their employer loyalty
- 72% of employees said that the ability to customise benefits increases their loyalty
- 36% of employees said improving their benefits package would keep them in their job
STAND OUT FROM YOUR COMPETITORS
The advantages of having company benefits can provide an organisation a competitive edge compared to other organisations that do not provide employee benefits. Offering employee benefits within an organisation is important as it shows employees that employers are invested in their overall health and their future well-being.
It is also important for UK businesses to cater to their employees at all stages of their life, regardless of a employees age. Although statistics state that 45% of 55 to 64-year olds are in favour of employee benefits, a massive 73% of 25 to 34 years find employee benefits crucial to their work-life.
HOW TO OFFER COMPANY BENEFITS WITHIN YOUR AGENCY
Remus Rewards is a division of PeopleValue Ltd, one of the UK’s leading employee & member engagement specialists. Founded in 2011, Remus Rewards currently provides employee benefits to over 35 businesses within the recruitment and umbrella industry. Their mission is to become the agency of choice to the UK recruitment industry and a strategic partner to its customers.
If you would like more information on their services you can visit their website here.