Reap the reward with an attractive employee benefits package

A competitive salary is no longer the sole reason an individual may choose to join your business, or why existing employees choose to remain with you. Whether you manage a small or large organisation, an attractive employee benefits package can help you to recruit, retain and motivate your employees, as well as improve employee wellbeing, and reduce costs related to sickness-related absenteeism.

A good employee benefits proposition should cover three broad areas:

1. financial benefits;
2. health and wellbeing benefits; and
3. lifestyle benefits.

A different range of benefits will typically appeal to employees at different stages in their working career and, by offering a flexible range of options, individuals can tailor their package to suit their varying needs and objectives.

Some employee benefits could be organisation funded or subsidised, alternatively the cost for some or all met by the employee. There could also be a saving to employee tax and NI costs as some benefits could be set up using a salary sacrifice arrangement.

A business should seek to align its employee benefits package with its culture and employee demographics. Regular communication of the benefits package is key to ensuring that it is valued, and employees understand their ‘total reward package’.

It’s important to review the employee benefits package on an annual basis to ensure that it remains relevant, continues to meet the needs of your employees, and they remain engaged with the range of benefits provided.

You can contact the employee benefits team at Moore Kingston Smith Financial Advisers if you would like to arrange an initial meeting to discuss employee benefits at your business. Below are some of the key employee benefits to consider for an effective proposition.

Financial benefits

These benefits provide a direct financial benefit to employees, or an important financial safety net.

• Workplace Pension Plan – Employers must now offer a workplace pension and comply with the statutory minimum contribution levels, but a more generous pension scheme, offering flexible employee and employer contributions, is highly valued by many employees.
• Pension Salary Sacrifice – Provides cost savings to both employees and the business due to lower National Insurance contributions. The employer National Insurance savings can be retained to help fund other benefits or can be passed back to staff as an additional employer pension contribution.
• Group Life Assurance – Pays out a lump sum if an employee dies whilst employed by the business. Annual premiums are very competitive.
• Group Critical Illness – Pays a tax-free lump sum if an employee is diagnosed with a serious medical condition. Can be offered on a voluntary basis at no cost to the business, or the business can fund the benefit.
• Group Income Protection – Pays a proportion of employee’s salary for a fixed length of time, if they are unable to work due to long-term illness or injury.
• Employee Discount Schemes – Many schemes can be introduced at no cost and provide savings at supermarkets, electrical stores, cinemas, restaurants, and many more.
• Workplace Financial & Pension Guidance – Financial wellbeing is closely linked to personal mental health and wellbeing, and employers can help their staff have better control of their finances by offering access to expert guidance that helps people manage their current budgets and plan more effectively for the future.

Health and wellbeing benefits

These benefits are designed to support employees’ physical and mental wellbeing, which can also be of significant benefit to the employer.

• Employee Assistance Programme – A wellbeing and counselling service that provides support to staff and their immediate family. It can also provide access to an online “24/7” GP service for when staff need fast answers and peace of mind for a medical problem that isn’t an emergency. Most group life assurance and group income protection providers include an Employee Assistance Programme, often at no additional cost.
• Group Private Medical Insurance – This is one of the most desired employee benefits, but also one of the more expensive. Provides access to private healthcare and can help reduce sickness-related absenteeism and its related costs.
• Health Care Cash Plan – Provides cash back for routine treatments up to an annual limit set by the employer. Treatments can include dental, optician and physio appointments. Can be offered on a voluntary basis to both employees and their families, alternatively, the business can fund some or all the benefit.
• Health Assessment – Provides an in-depth analysis of an employee’s health, fitness, and wellbeing. Can be offered on a voluntary basis or the business can fund the benefit.

Lifestyle benefits

These benefits are designed to enhance an employees’ lifestyle and are typically offered on a voluntary basis.

• Cycle to Work Scheme – Allows staff to purchase a brand-new bike with deductions being taken from their gross monthly salary before income tax and National Insurance. The business also saves on employer National Insurance for each member of staff that uses the scheme.
• Electric Vehicle Salary Sacrifice – Can also be introduced at no cost and allows staff to buy a new electric vehicle with deductions being taken from their gross monthly salary before income tax and National Insurance.
• Holiday Trading – Allows staff to purchase extra leave, or alternatively to trade-in some holiday allowance for additional salary. This benefit can allow staff to improve their work-life balance.
• Lifestyle Allowance – An annual amount that staff can use to put towards one of their hobbies or interests outside of work.
• Corporate Gym Membership – Provides employees with access to gym membership at corporate rates. If the deduction is taken from gross monthly salary, there will be tax and NI savings.

Our employee benefits team can help you build an employee benefits packaged tailored specifically to your organisation. To find out more, contact the employee benefits team at Moore Kingston Smith Financial Advisers here.