What types of employee benefits could be helpful to your employees?
As much as offering employee benefits is great, knowing the employee benefits that will be most useful to your people is key. This means that not only do your employees get to benefit from having an employee benefit package in place, but they can also utilise ones that are useful to them.
Before thinking about looking for a provider, ask your employees what support you could be giving them. This will be useful for 3 reasons:
- It makes employees feel heard
- It helps design a useful employee benefits package ensuring a higher ROI
- Employee satisfaction often leads to higher employee engagement and retention
Let’s look at some of the different types of benefits available and the benefits that can come under these categories.
Financial benefits for employees
Within your company, you will have employees at all stages of their life. They will have different needs when it comes to the types of benefits they’ll use. There are luckily many financial benefits for employees. These include:
Salary deducted loans
Salary deducted loans allow employees to borrow money from the company (or through a partnership the company has established with a financial institution) and repay it directly through automatic deductions from their regular salary.
For employees, these loans offer a convenient and potentially more affordable way to access funds compared to traditional loans, thanks to automatic repayments and potentially lower interest rates. This can be particularly beneficial for those who may face challenges securing credit elsewhere, providing a discreet and manageable solution for various financial needs.
Financial planning services
Companies can offer access to professional financial advisors or planners as an employee benefit. These services can range from one-on-one consultations to group workshops covering topics like budgeting, debt management, investment strategies, retirement planning, and tax optimisation.
Access to financial planning services empowers employees with expert guidance tailored to their individual circumstances, helping them navigate complex financial decisions and develop strategies for budgeting, saving, investing, and long-term security. This support can significantly improve their financial literacy, reduce stress related to money management, and ultimately contribute to greater financial well-being.
Financial wellbeing libraries & resources:
This benefit involves providing employees with access to a curated collection of educational materials and tools focused on improving their financial literacy. This can include online resources, articles, videos, webinars, workshops, and downloadable guides on topics like budgeting, saving, investing, understanding credit scores, and managing debt.
Providing financial wellbeing libraries and resources equips employees with the knowledge and tools they need to improve their financial literacy at their own pace. This readily accessible information on topics like budgeting, saving, and investing empowers them to make more informed decisions, take control of their finances, and build a more secure financial future.
Lifestyle benefits for employees
As much as there are types of employee benefits that support you with the big life moments, there’s also a lot of benefits that can help you make the most of the little ones too.
Instant Discounts
For employees, instant discounts offer immediate savings on a wide range of products and services, enhancing their purchasing power and making their everyday spending more affordable. This benefit allows them to enjoy reduced prices on everything from groceries and entertainment to travel and electronics, directly translating to more disposable income and a tangible improvement in their financial well-being.
Instant discounts typically work through partnerships established by the employer with various retailers and service providers. Employees are usually provided with a unique code, membership card, or access to an online platform where they can browse available discounts and redeem them at the point of purchase, either online or in-store. This provides immediate and easily accessible savings
Car Schemes
Implementing car schemes, especially those that support Environmental, Social, and Governance (ESG) initiatives helps employees access more environmentally friendly vehicles, aligning their personal choices with the company's sustainability goals. This benefit can include options for electric vehicles or low-emission vehicles through salary sacrifice arrangements or company car policies, often with incentives or support for charging infrastructure.
These car schemes typically involve offering employees the option to lease or acquire EVs or low-emission vehicles with potential tax benefits and reduced running costs. The company may also provide charging facilities at the workplace or support home charging installations, encouraging the adoption of greener transportation options and contributing to a reduction in carbon emissions.
Salary Sacrifice benefits
These types of benefits require an employee to sacrifice a small amount of their gross monthly salary in return for an item or perk. This trade is a great way to get the items you need or want and provide you and your loved ones with more fun and time together without it costing you a tonne of money.
Car Maintenance Schemes
Motoring-based schemes such as MotorSave, can help employees save money on car maintenance. They ensure that employees can take care of their car while spreading the cost over several months. The cost of MOT, service, vehicle repairs and other routine car maintenance are usually all covered, so, employees can take care of their car whilst not breaking the bank and the option to add family cars on the scheme too.
Holiday Trading Schemes
Providing holiday trading schemes offers employees more time away from work for rest, relaxation, and personal pursuits, exceeding their standard statutory entitlement. This benefit demonstrates a commitment to employee well-being, allowing for better work-life balance, reduced burnout, and increased opportunities for personal enrichment and spending time with loved ones.
Enhanced holiday schemes allow employees to buy and sell days off using payments to or from their gross monthly salary, a day off tends to work out at 1/260th of their salary so dependent on the employee and their employment set up, it will change the salary amount that is sacrificed for the time off. These schemes provide employees with more flexibility and time off to recharge and attend to their personal needs.
New Tech Schemes
Offering tech schemes provides employees with access to the latest technology, often through salary sacrifice arrangements, making desirable gadgets and devices more affordable. This benefit can help employees stay connected, improve their personal productivity, and enjoy the latest consumer electronics without the immediate financial outlay, while also potentially offering tax advantages.
Tech schemes typically allow employees to acquire items like laptops, smartphones, tablets, and other electronics, with the cost spread over a period and deducted from their gross salary, potentially reducing their tax and National Insurance contributions. The employer arranges the purchase or lease of the equipment, making it a convenient and cost-effective way for employees to access technology.
Tailoring benefits for a thriving team
The effectiveness of your employee benefits package hinges on its relevance and value to your people. The different types of employee benefits are vast and ever evolving, so rather than making assumptions, the most impactful approach is to actively engage with your employees to understand their specific needs and preferences. By prioritising this, you can design a benefits package that not only attracts and retains top talent but also boosts morale, ultimately contributes to a more engaged and productive workforce.
Remember, a well-considered and employee-centric benefits strategy is not just a cost; it's a powerful investment in the long-term success of your organisation.
