When it comes to business, your people are your greatest route to success, and yet they are almost certainly the biggest annual expense, too.
As a result, it’s a good idea to ensure that your team are happy, healthy, and well cared for, and a comprehensive benefits package can help with this.
As well as providing financial benefits for your business, the right benefits package can also help to attract and retain talent.
74% of UK businesses feel hiring has become harder
SME reports that 3 out of 4 UK businesses “feel hiring has become harder in the past five years”[1]. If this is something that resonates with you, it may pay to take a look at the benefits you’re offering.
Indeed, research from Canada Life reports that more than a third of UK workers – as many as 10.8 million people – say they have decided to accept a job due to a competitive benefit, perk, or policy[2].
And additional research, reported by People Management, reveals that benefit packages are the most important thing for more than half of 18- to 34-year-old jobseekers[3].
Know what makes a great employee benefits package
There’s a wide range of employee benefits to choose from. Along with those that can be used straightaway, there are also options that you can deploy to deliver enhanced, long-term value to longstanding employees.
With so much choice on offer, it may pay to seek advice from a workplace benefits expert.
We have the technical expertise and experience to help ensure your benefits package:
- Delivers maximum value to your employees
- Meets the needs of your business and your team
- Suits your budget and provides value for money
- Is understood by your staff and communicated effectively.
An attractive employee benefits package is an excellent way to make yourself stand out from the crowd. So, if you haven’t reviewed your package recently or you’re having a rethink, here are five employee benefits to consider.
- A competitive pension scheme
Providing employees with a workplace pension has been mandatory since 2012. The idea behind auto-enrolment is that it can help ensure that more workers are saving towards their retirement, and won’t be solely dependent on the State Pension when they retire.
Employers are legally obliged to pay at least 3% to employee pensions, with another 5% coming from the employee. You and the employee can each choose to pay more.
Should you choose to contribute more than the obligatory 3%, offering a more generous amount to some or all of your employees could help to make your workplace pension more competitive.
Our specialist team can help analyse your current arrangements to ensure they provide value for members. We can also help communicate the value of your workplace pension to your employees.
Read more: 3 excellent ways to encourage employees to engage and contribute to the workplace pension
- Salary sacrifice
When it comes to providing a competitive workplace pension, another option is to offer a salary sacrifice scheme or Pension Salary Exchange (PSE).
This allows the opportunity for you and your employee to agree to reduce the employee’s salary, with the difference being paid as an additional contribution to the employee’s pension.
In effect, because the employee is being paid a lower salary, this reduces the amount of National Insurance contributions (NICs) you each pay. As such, this can help employees save for a more comfortable retirement while also creating savings for you and the business.
- Illness and life protection
Group risk policies can protect your employees and their families if the worst happens.
- Life cover can financially support an employees’ dependants if they suddenly pass away while employed with your business.
- Critical illness cover pays out a lump sum if an employee is diagnosed with an illness specified in the plan and survive for a pre-determined length of time following their diagnosis. The payout can be used to cover medical bills, to pay off a mortgage or other debt, or to help cover household bills and relieve the potential financial stress that a critical illness diagnosis could create.
- Income protection provides cover if an employee is unable to work due to an illness or injury. Cover provides regular payments to replace part of their usual income. Depending on the policy, income protection insurance generally pays between 50% and 75% of an employee’s income while they are unable to work.
Our Group Risk Consultants have a deep understanding of how to help you maximise your group risk spend. Get in touch to find out more.
- Private healthcare
There’s a wide range of healthcare schemes, varying from dental plans that cover the cost of regular check-ups to full medical insurance covering the full cost of major treatment and surgery.
Providing healthcare as a workplace perk can help keep your team fit and productive. Yet with so many providers, scheme types, and other variables to consider, deciding which group healthcare best suits you, your employees, and your budget can be complex.
We’re experienced in designing, implementing and managing healthcare schemes and can help with:
- Cost-effectiveness, by ensuring you secure competitive pricing and terms
- Appropriate benefit levels, by designing cover to achieve employee engagement and maximise value
- Provider comparison, by analysing provider policy terms, cover, customer service levels.
Get in touch and we’ll help you find a suitable package – for your business and your employees.
- Access to financial planning and support
An important part of providing employee benefits is supporting employees with advice in the workplace.
This kind of specialist workplace advice provides multiple benefits, including:
- Increasing your employees’ understanding of their pension scheme and benefits packages
- Encouraging higher engagement
- Easing the load in your HR and Payroll departments.
The advice we give is personal, and we can offer your employees bespoke advice on pension contributions levels and investment risk. We can also advise on the tax implications of their pension arrangements to help them make the most of their allowances and avoid unnecessary tax bills.
We also offer annual reviews to ensure that employees adapt to any change in circumstances and are ready for whatever the future holds. When employees are approaching retirement, bespoke financial advice can prove particularly valuable.
Get in touch
No matter the size of your business, our experienced team of corporate consultants provide the specialist services you may need to recruit the best talent, retain existing employees, save money, and safeguard the future for your company and your employees.
To find out more about all the ways we can help you deliver a competitive benefits package to your employees, please get in touch.
Email info.wp@titanwh.com or call us on 0800 048 0150.
Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
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.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
Note that life insurance 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.
[1] https://www.smeweb.com/majority-of-uk-businesses-say-hiring-has-become-harder/
[2] https://www.canadalife.co.uk/news/company-benefits-and-perk-packages-sway-10-7m-workers/
[3] https://www.peoplemanagement.co.uk/article/1851721/half-younger-workers-say-benefits-top-priority-when-job-hunting-report-finds
TWP 345
