How Employee Benefits Can Save Your Business Money
No matter what form they may take, from assistance with childcare to offering discounts on important shopping, offering employees tangible benefits is not only important but necessary for the ideal smooth operation of a business. This comes as a surprise to many employers, who consider offering benefits to their workers as nothing more than a drain on the company’s bottom line.
This article will break down three of the most direct and objective reasons why offering employee benefits is directly valuable to any business and can play an actively important role in ensuring the long-term health of any enterprise.
The most tangible and obvious reward for offering extra, non-cash bonuses and perks to workers is that it results in owing less in taxes each year. The way it works is very simple – an employer offers a salary sacrifice scheme wherein employees agree to give up a fraction of their overall salary in exchange for benefits such as a gym membership or reliable access to parking. As a result, the employer ends up paying less overall in wages and thus doesn’t need to pay as much for taxes or National Insurance.
It must be mentioned that the government has introduced a newer form of income tax on some salary sacrifice schemes, most notably company cars or company-provided mobile phone contracts.
Benefits that are still not affected by such taxes include:
- Workplace nurseries
- Childcare vouchers
- Home computers
- Cycle-to-work schemes
- Employer-provided pension savings plans
- Prepaid store cards
The modern worker in the UK sees benefits as one of the most important elements while looking for a new job. The simple fact is that we live in a complicated modern world, one which will likely only become more complicated over time. For this reason, it’s vital for an employer to offer their workers flexible and dynamic options to accommodate the complex realities of modern life.
For example, offering employees flexible working hours and the option to pay extra for the right to take longer holidays sends the message that you care about your workers and will recognise their hard work and effort in the workplace with rewards that are important and valuable to them.
If a prospective employee is trying to decide between accepting a position at one of two companies, even if the job description, salary, and office space are identical, the company offering better benefits becomes the obviously correct choice.
Competitive benefits make it easier to draw new workers to your business. And a shorter, easier hiring process has many benefits: less money spent on advertising the position, less company time lost to interviewing, and less time trying to accomplish your usual work while short-staffed.
This final point is somewhat connected to the last one. Just as competitive, desirable benefits can help to attract and hire new workers quickly, so too can they serve to keep your established, high-quality employees from leaving your business.
In addition to reducing the expense of hiring new help (as we mentioned in the previous section), high employee retention offers a less tangible but no less vital benefit of creating a positive and healthy working environment.
It’s hardly surprising that a workplace with a “revolving door” of high turnover does not encourage workers to do their best, or even do much of anything beyond the bare minimum. If one’s co-workers are constantly leaving and being replaced, it sends a clear message that you should expect the same, and what’s the point of investing time and effort into a workplace that you plan to leave in six months’ time?
A strong benefits package does more than simply incentives new hires – it serves to send a clear message to new and established workers alike that the company cares about the wellbeing and interests of its employees. A happy staff is not only less likely to depart for greener fields, but they will also be more motivated to do quality work and will have active loyalty to their colleagues and their employer.
This is why some of the most desirable and valuable benefits are options for employees to invest some of their income into Share Incentive Plans (SIPs), a workplace ISA, or a Save As You Earn (SAYE) scheme. It allows workers to invest not only their time and energy into a company, but directly invest in it financially as well.
Take Advantage of Employment Experts
While employee benefits may take some money out of the pocket of a business in the short term, it’s important to recognise that these benefits are not really an added cost, but rather a chance to invest in the long-term stability and prosperity of your business.
A happy, engaged employee is one who is invested in their work, who is willing to put in extra time and effort because they feel that their employer has their best interests at heart. These sorts of ideas are really just the tip of the iceberg when it comes to maintaining a quality workforce.
To find out how to truly maximise the potential of your workers and business, contact BBU Recruitment today!