Tired of not only losing once loyal employees to rival companies but also struggling to attract top talent? Perhaps your staff are considering alternative working opportunities. While offering a salary increase can be a tempting incentive to stay or attract new talent, most companies don’t have bottomless coffers. Fortunately, there are more affordable yet equally effective strategies to guarantee employee satisfaction, retain existing talent, and attract skilled newcomers. We’re talking about employee benefits, of course.
Wondering how your benefit packages stack up against the standard? In search of employee benefits examples to see what else you can use to attract new hires and incentivise success? We’ve got you covered.
What are employee benefits?
Employee benefits are essentially any perks or incentives that fall beyond the scope of standard salaries. There’s an enormous amount of variety when it comes to benefits offered to employees. Some companies offer generous life assurance policies, while others provide comprehensive healthcare coverage. Career advancement and training opportunities are more commonplace and are generally the most affordable incentive for employers.
Although perks aren’t typically associated with wages, some benefits can bring financial gain. In sales-oriented roles or within companies built on a bonus culture, benefits tend to be performance-oriented. These can take the form of individual sales commissions or team-wide rewards when company targets are met.
Why employee benefits are important
Employee benefits are essential for employee engagement. What’s more, they’re one of the most useful ways of improving employee retention rates. Many employees feel that benefits are integral to job satisfaction, with a happier workforce more likely to be a productive one. A lack of benefits can drive uninspired and unmotivated workers to seek employment elsewhere. However, a newly introduced benefits package can be the deciding factor that convinces an employee to stay.
Benefits can also help bring in fresh talent. When companies offer an attractive benefits package, they’re more likely to entice highly desirable candidates away from the competition. If benefits are a key part of your branding as an employer, make sure you’re drawing attention to them with every job post. You should also be promoting them on your careers pages and social media channels.
A hefty salary isn’t everything, but money talks. A premium pay rise is an effective incentive that can keep essential employees from straying, but not every employer is in a position to offer this. However, generous benefits can help sweeten the deal. Provided you’re paying your staff a fair wage, they’re more likely to remain loyal if they have access to perks like professional development schemes and flexible working arrangements.
Types of employee benefits
Generally speaking, most employee benefits can be grouped into one of several categories.
- Employers in many countries tend to offer insurance benefits. These can include life insurance policies, disability insurance, and health insurance. In fact, employer-offered healthcare insurance is a legal requirement in many parts of the world.
- Another common benefit is paid time off. In some countries like the United States, employers aren’t legally obligated to offer paid vacation time. This makes the companies that do a far more attractive prospect to job seekers. Elsewhere, paid time off is mandatory, with legal minimums varying between countries.
- Retirement plans are also frequently encountered. In countries like the United Kingdom, employers are legally obligated to offer a workplace pension scheme. Some employers choose to go the extra mile for their employees, offering to match the contributions made by those looking to boost their pension pot.
- Bonuses are another popular benefit offered by companies, with these incentives being advantageous for both employees and employers. For employees, there’s the possibility of lucrative commissions, performance rewards, and even unique perks like food and snack benefits, employee discounts, and access to mental health and wellness programs. Meanwhile, employers typically benefit from increased productivity across the board.
Employee benefits examples
Keen to keep your best employees loyal and bring in a new batch of highly skilled candidates? Benefits are an easy way of making yourself a more alluring prospect than other employers. Below, we’ve outlined some of the most common employee benefits examples UK employers should think about offering.
1. Professional growth and development opportunities
Struggling to entice job seekers away from key competitors? You might not be able to match your competition when it comes to starting salaries, but an enticing training and professional development program can make your business a more desirable prospect.
As well as attracting new hires with career advancement opportunities. In-house employee development saves you the hassle and expense of having to recruit and onboard more experienced candidates down the line.
2. Student loan repayment plans
Helping employees cover the cost of student loan repayments is a very appealing benefit, especially for younger employees looking to clear their debt. Even if you’re offering a salary that takes a new hire over the repayment threshold, you can help them by offering additional payment to help clear the cost of studying more quickly.
3. Healthcare plans
Your employees might have access to free healthcare, but second-rate services and long waiting lists are an issue. A healthcare plan that covers the full or partial cost of private treatment is a hugely attractive benefit that will help snare top talent. Looking for a less expensive option? Think about subsidising the cost of private dental treatment or visits to the optometrist.
4. Pension contributions
Retirement plans are a common type of benefit. Saving for a comfortable retirement is expensive, with state benefits barely covering basic living essentials. This makes benefits like private pension schemes hard to resist.
Generally speaking, private pension plans are more generous for long-serving employees and scale with a rising income. This can encourage a workforce to remain loyal and motivate employees to pursue more senior roles within your organisation.
5. Extended parental leave
In the UK and many other countries, paid maternity and paternity leave is a statutory requirement. However, many companies choose to offer extended family leave to employees who wish to take it. Whether paid or unpaid, family leave can be a huge draw for working parents.
6. Work from home
Remote work has become the standard across many industries. If the nature of your business can accommodate it, think about offering work-from-home perks to your employees. If a fully remote workforce isn’t something you want to entertain, consider adopting a hybrid model. Being flexible with working location means you can cast the net wider when recruiting for vacancies. It can also help retain staff looking for a healthier work-life balance.
7. Flexible working hours
The traditional 9-to-5 might work for some, but it’s not everyone’s ideal. Being flexible with working hours is an effective retention strategy and can help with talent acquisition. Some people may be looking to avoid peak travel fares and crowded commuter trains, while others may be more productive during the late afternoon or early evening. Even if it’s only the difference of an hour or so, employees will respond incredibly well to flexible working options.
You might also want to think about experimenting with a four-day week. You can approach this one of two ways. In one scenario, employees still put in a 40-hour week, but work longer on the days they are in the office. Alternatively, employers can choose to reduce the actual amount of working time to 32 hours. In either case, pay should remain unchanged from a traditional five-day week if you want this to be seen as a tangible benefit.
8. Travel expenses
Having to cover the cost of a gruelling commute can put off potential candidates from applying for a job. Meanwhile, ever-increasing rail fares and fuel costs can force long-serving employees to look for positions closer to home.
Company cars are commonly offered to senior professionals and employees who need to travel daily for work. However, you can extend travel-related benefits to the rest of your workforce. Subsidised rail fares or work-related travel mileage can help take the sting out of a lower rate of pay.
9. Employee discounts
A good way to help out your workforce financially without dishing out pay raises is to implement an employee discount scheme. Enabling everyday things like coffee, subscription services, and gym membership fees is a relatively inexpensive way of letting your workforce know you care and boosting team morale.
10. Food and snacks perks
The way to an employee’s heart is often through their stomach. Offering free food and snacks is a small yet significant gesture that can boost morale and show your staff they’re valued. It’s not just about having a fully stocked kitchen or vending machines; think about how you can make meal times more special. Host regular lunch gatherings or provide healthy snack options to keep your team energized and focused.
For those looking to attract new talent, advertising a workplace with a great food culture can be a strong draw. It’s a perk that appeals to almost everyone and fosters a sense of community. Plus, it’s an excellent way to encourage social interaction among team members, breaking down barriers and strengthening workplace relationships.
11. Extra annual leave
Employees with a healthy work-life balance tend to be more productive and loyal. As such, it’s worth reconsidering annual leave entitlements. In the UK, most full-time workers are entitled to 28 days of paid annual leave every year. However, offering extended holiday allowance as a benefit can keep existing employees happy and appeal to job seekers.
You can offer extended annual leave to everyone, from the most junior employees to those at the C-level. Alternatively, you can extend the annual leave allowance incrementally. The longer someone remains in your service, the more annual leave they’ll be able to enjoy.
12. Mental Health and Wellness Programs
In today’s fast-paced work environment, prioritizing mental health and overall wellness is crucial. Implementing mental health benefits, such as access to counseling services or wellness apps, can have a profound impact on employee well-being. It’s not just about addressing mental health concerns; it’s also about fostering a supportive and understanding workplace culture.
Consider offering mindfulness sessions, yoga classes, or workshops on stress management and resilience building. These initiatives show your commitment to the holistic well-being of your employees, making your company a more attractive place to work. Not only does this benefit appeal to potential hires, but it also plays a significant role in retaining current employees by demonstrating that you value their overall health and happiness.
Such programs can lead to improved focus, higher productivity, and reduced absenteeism, creating a positive and healthy work environment for all.
Boost Retention and Recruitment with Employee Benefits
Offering generous benefits is a surefire way of retaining your best staff for longer and encouraging desirable candidates to apply for vacant roles. However, you’ll also need the right recruiter tools at hand.
With Teamdash, you get an applicant tracking system unlike any other. Designed by recruiters for recruiters, the core features you’d expect from a first-rate ATS can be found here, alongside a host of premium tools to refine your hiring efforts. Spotlight benefit packages by tailoring job descriptions and careers pages. Use social media integrations to promote perks across all your social media accounts. Meanwhile, automation tools mean your HR and hiring teams are freed up from mundane manual tasks.
Ready to get started with your next recruitment drive? Why not book a demo with Teamdash today?
