How to offer cost-effective employee benefits that will attract and retain staff in smaller businesses

We spend at least one-third of our lives at work. We work hard and want to feel rewarded for that hard work. These days, employees are savvier about what they expect from prospective or current employers, and the only way an employer will do well by their staff is by looking after them. Not just in monetary and pension terms, either – money isn’t always the prime motivator for employees. Up to 75% are more likely to stay with their employer because of the benefits they offer.

As an employer, where can you make a real difference to the people you have? Just as importantly, what difference can you make to any prospective employee you want to have in your organisation to attract and retain them?

Flexible working is indeed a given. Most organisations recognise that flexible, time-adapted roles are essential for staff as a deal breaker these days, especially after the pandemic. But what else can employers think about – especially if you’re a smaller business, wanting to offer a competitive salary and good benefits while being mindful of the business budget too? They have to provide value – but also be cost-effective and realistic.

What are employee benefits?

Let’s look at a few things that could work for employees and employers. First, we know we need a work-life balance in our lives, and that flexible working is essential.

If, as a company, you’re not entirely sure where to start with other ideas, how about doing a survey among staff to see what they think would benefit them? Perhaps you have a day or half-day where the focus is on what more you can do for your employees by getting everyone involved.

What are the advantages of having employee benefits? Having benefits is essential to a positive working environment. It’s not just about pay – it’s about showing that employers care about their people.

• Offering great benefits will only shine a positive light on your business – within your community and the business’s reputation.
• Employees will not only feel valued as people but also talk about it to friends, family and peers outside of work. This can only be beneficial when attracting new people.
• Staff retention isn’t only costly, but if you can hold on to talented people in a competitive market, your internal resources will go from strength to strength. Putting something in place that your staff will appreciate is crucial to training and recruitment budgets.
• When people feel looked after, they will naturally be more motivated and committed to their work and the organisation as a whole.
• When taking a proactive approach to staff’s mental and physical well-being, it instils a positive work environment and keeps people’s sick days at an all-time low. So, it’s vital to be aware of the signs of stress and what can be done to help alleviate it.

Thinking outside the box

Benefits can take the form of all sorts of things, but they must be suitable for your team. A few other things to consider are:

• It’s not just about you – the leaders and owners of the business. It’s about what your team would like! What would make a difference to them and their lives?
• Think about what savings you could offer that would impact different areas of employees’ lives.
• What things would keep staff engaged and fully involved in having a say about what works for them and their families?
• What can you think about that would also reflect well as an organisation wanting to make a difference in your community? Is it sustainable, diverse, and inclusive thinking about the planet and how we can all get more involved in living in a better world?

Simple ideas can make a huge impact

Having access to an excellent pension scheme is important. A competitive salary and the chance to increase income with an attainable appraisal system are attractive. Flexible working is critical these days, but there are many things you can give employees a choice to pick – and perhaps a ‘pic ‘n’ mix’ works for you as an organisation if your budget allows.

It’s also crucial to offer staff the opportunity to tap into an employee assistance programme should they need it.

Giving employees a chance to save money in different areas of life can be as attractive as that inflation-busting pay rise. It gives people the opportunity to save money on all sorts of money-saving deals:

• Cashback cards can work as well as e-vouchers and gift cards. By offering these, staff can save money and be used for various purchases from technology and the weekly supermarket shop or local garden centre to bigger purchase holidays and cars.
• Cinema or concert tickets – what would people prefer?
• Restaurant vouchers and deals – there may even be local restaurants that work with local organisations to encourage people to dine out with them.
• The purchase of an extra day’s holiday each year is usually very popular and can also be a saving for the business, so a win-win benefit for both!
• Days out for friends and family members – fun days, National Trust Days, things that involve children, for those who have them – including the family dog.
• Cycle to work – a popular benefit that many buy into.
• Give people a choice about what they want access to. Not everyone has children or pets or the desire to spend days out at a local racing track or National Trust home and countryside. Keep thinking outside the box!

Some organisations can also help you organise employee benefits and maximise them. You could also talk to other businesses about what they do for their employees. There may be a community-led scheme you can all get involved in, raising the profile of local businesses and residents.

This website is just one of many that might give you some inspiration, and let us know how we might be able to help with some of those ideas and how you can work together with your HR and Training people to bring some of these ideas to fruition. Having a working environment that is a pleasure to be a part of is essential for people, especially in our economically challenged world that we live in right now. It’s time to make a much more positive impact for business and for people.

Come and visit us at  www.personnel-placements.co.uk or contact us to learn more about how you can find out more about how you can make much more of a difference to your business and your employees.