The world of work has changed dramatically over time, particularly in the last half a century, as has the relationship between employers and their employees.
Previously, work was a simple transactional relationship. An employer hired an employee to fulfil a certain role, this worker did so to the required standard, and they would then go home at the end of the day with money in their pocket in return for their labour.
These days, the workplace can play a more significant role in our lives. Many employees are looking to build their careers for their own personal goals, and being in a shared workspace means that occupations are often highly sociable, too.
Alongside these shifts in what work means, the way employees are compensated has also changed. Businesses now need to provide other generous benefits alongside a pay package so that they can find the right people for the roles on offer.
As a business owner yourself, that means attracting and retaining the best talent in your company is not just a case of paying a competitive salary, but also offering excellent company benefits.
So, find out more about the types of benefits that matter and what you can do to make sure you are meeting the needs of your team.
Flexible working and generous pension contributions are among the benefits that employees value
In this new era of work, company benefits have become just as important as salary, and potentially even more so. According to research reported on by Employee Benefits, 40% of UK employees said that they would be willing to take a role with a lower salary if it had generous benefits attached.
Carried out by protection and employee benefits provider MetLife UK, the research revealed that the top perks UK employees said they wanted are:
- Hybrid and flexible working
- Competitive annual leave packages
- Financial bonuses
- Generous pension contributions
- Mental health support and wellness packages
- Private healthcare and dental care
- Income protection.
Using this information, you can determine whether it would be a possible course of action to introduce some of these benefits if you do not offer them already. This could improve your retention rate in your team, while also serving as a valuable perk you can display on job adverts when recruiting.
Certain benefits can provide additional gains to your business, too. For example, making greater employer pension contributions can reduce how much you have to pay in National Insurance.
Furthermore, as pension contributions are typically considered an “allowable expense”, you can also reduce your Corporation Tax bill by paying more into company pension pots.
By carefully considering the benefits you offer, you could strike a balance that best suits the business and your team members.
Ask your team what they would value the most
While research like this can offer useful insights into what employees want as a whole, it is important to remember that it is not specific to the people in your business. Nor is it practical or cost-effective to introduce all these benefits at once.
To determine what would be best for your business, it can be incredibly powerful to ask your team what they would like to see as part of their compensation.
Run your own internal survey and ask your team what they would value most. You could use the list above as a starting point for the different options you are considering. Or, allow your team members to write exactly what they are interested in so they are not constrained by a preset list.
It is also worth asking your team members to rank different benefits from their top priority to the one they are least interested in. As everyone is likely to have different wants and needs from their benefits, asking them to rank the different options could reveal a middle ground that everyone is at least partially happy with.
You can then design a company benefits package that best suits those in your business based on their responses.
Flexible solutions can help you personalise your benefits package to your team
Of course, the fact that the desired benefits are going to vary from person to person is a significant part of the dilemma for you in designing an effective and generous benefits package.
For example, someone in their 30s with a family might want income protection or larger pension contributions. Meanwhile, a recent graduate in an entry-level position might have more of a focus on annual leave or healthcare benefits.
This is where you could consider offering flexible benefits. These types of packages give your employees access to a menu of benefits they can choose from, customising perks to the individual needs of your team.
This approach helps you to avoid providing benefits that your team do not need or value, and instead ensures that everyone receives a set of perks that are relevant and personalised to them.
Get in touch
Need support managing your wealth as a business owner? Please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
Workplace pensions are regulated by The Pension Regulator.
Note that protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
