An employee benefits package can play a huge part in the success of any business, in any industry.

There are many differing stresses and pressures when it comes to working conditions, with the typical attribute being the day-to-day workload issues, but it is not always the job itself that causes people to experience stress at work. Other additional influences such as financial concerns, mental and physical health issues and family/carer responsibilities all play a role in contributing to and enhancing workplace stress.

Whilst these problems cannot be directly controlled within a work environment, employers can provide assistance and support to their employees in managing certain issues with a comprehensive employee benefits package.

This has become particularly true since the Coronavirus pandemic and changes in working patterns across the UK, as well as the recent Cost of Living crisis, where an employer’s treatment of their workforce has come under even further scrutiny by the media, politicians, customers and the staff themselves.

According to a recent survey by the professional body for human resources and people development, CIPD, indicators are showing that there has been no real improvement in the job quality of employees, with some aspects having gone backwards. To quote the CIPD UK Working Lives survey (2023) ‘UK workers are now more likely to think that work is purely transactional – just for the money and nothing else – than they were four years ago.’

Various research over the years has shown that a good employee benefits package may:

• Improve workplace morale
• Reduce stress and staff absences
• Boost productivity
• Help set the tone for your company’s internal values and ethos
• Reduce staff turnover by helping to retain existing staff
• Make recruiting highly skilled workers easier.

How to reignite your benefits package

Providing a pension scheme is now a legislative obligation and the bare minimum standard in employee benefits. Therefore, highly skilled workers may now look for improvements to this standard benefit and for additional benefits when reviewing their options and the market. This can typically be split into the following categories:

• Paid benefits (typically insurance)
• Additional perks and benefits that are low-cost or possibly free to implement.

Pension Scheme Improvements

• Matching or exceeding your employees’ pension contributions could be invaluable for employees to assist in building their pension in preparation for retirement, with the company also benefitting from this being a business expense against their corporation tax bill.
• Introducing ‘Salary Sacrifice’ can provide real added value, allowing both the employees and the company to benefit from additional tax and NIC savings, whilst still contributing towards the individual’s retirement savings.

Group Life Insurance/Death in Service

Group Life Insurance is a company organised group insurance scheme that usually promises a lump sum to an employee’s family if they die or develop a terminal illness whilst employed by the company.

Group Life Insurance policies typically pay out a multiple of the employee’s annual salary, but can also be set at a flat benefit rate. It is up to the employer to decide how much cover they would like to provide.

Group Income Protection (GIP)

Group Income Protection is an insurance policy purchased by an employer that will protect the finances of their employees, if an illness or injury prevents them from working.

The benefits employees receive is relative to their salary, typically on a percentage of their pre-tax earnings. This will ordinarily be paid out monthly after an initial waiting period, usually once your company’s sick pay policy would stop paying out.

Group Health Insurance/Private Medical Insurance

Group Health Insurance allows your employees to receive certain medical treatments privately. If they receive a diagnosis and referral for treatment from their GP, they will be able to use their referral to receive their treatment in a private facility and from a private practitioner, which is usually faster access than through the NHS.

Group Health Insurance is designed to cover the cost of private treatment for any acute health problems, whilst employees may be able to get cover for pre-existing conditions, unlike personal medical insurance policies. This is providing the group covered by the scheme is large enough and the most appropriate medical underwriting method is chosen.

Alternative benefits

The following alternative benefits, whilst being slightly rarer, can be seen to be very valuable to employees and potential new recruits:

• Flexi-time
• Increased holiday allowances
• Childcare resources
• Employee education/training/professional development opportunities
• Healthy living and Wellness benefits
• Gifts and rewards

Employee engagement and communication

Many employee benefit packages can be enhanced or limited by the type and level of communication to the employees. Better understanding and access to these benefits will only encourage the employees to make effective use of them, and mean the money and time spent to implement the policies is worthwhile.

This could range from ‘Welcome Packs’ for new employees to regular meetings/seminars to discuss the benefits, amongst other retirement & financial areas, with the employees. In addition, it may be a consideration to utilise benefit platforms for ease of access in making benefit selections and assisting with information and understanding.

If you wish to motivate your existing employees and/or entice new skilled workers to your company and wish to either implement a new benefit package or review an existing one, please contact us on 0330 320 9280, email info@cravenstreeetwealth.com or complete our online enquiry form.

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.

You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.

Craven Street Financial Planning Limited is authorised and regulated by the Financial Conduct Authority.