Employee Benefits has reported that 59% of British workers are unhappy with their benefits packages, with many planning to look for new jobs in the next six months.
According to research by the British Business Bank, it costs £3,000 on average to hire a new employee. This is a significant cost, especially for small businesses, so it’s important to select effective employee benefits strategies.
Deciding on a strategy
Developing talent to move up the ranks of your business and remain committed and motivated is always a great objective. However, we’re here to tell you about the real costs of introducing employee benefits.
As the employer, you will be required to pay Employer National Insurance contributions on top of any employee benefits. So, this must be considered in addition to the below costs.
Weighing up your options
Enhanced pensions, health insurance, mental health and wellbeing support are all highly popular employee benefits.
1. Enhanced pensions
As the state pension age increases, many employees are planning ahead for their future to secure funds for their retirement. Every business is legally required to provide a workplace pension; matching employee contributions is a great way to make employees feel valued and help them plan for their future.
As of April 2023, the minimum pension contribution is 5% for employees and 3% for employers. Using the average UK salary per year (£34,963) a 3% employer contribution per month would cost the business £71.81 (per month) whereas a 5% employer contribution to match the employee contribution would be £119.68 (per month).
2. Health insurance
Including health insurance as part of an employee benefits package can have a positive impact on retaining existing staff and attracting new employees as it may tip the scales of another job offer.
The typical cost of health insurance is £45 per employee per month, although this can range from £23 to £100 depending on employee ages and the tier of cover.
3. Wellbeing support
Burnout is a growing concern for many employers. Some have chosen to introduce wellbeing support through gym memberships and therapy or counselling to help to define a better work-life balance and encourage employees to take care of themselves.
Platforms like Juno allow employees to choose how to spend their wellbeing budget. Staff can choose from therapy, spa treatments, pottery classes and much more to suit their own goals and lifestyle.
A budget can be allocated per employee per month which equates to a certain number of Juno points to be spent on activities. You could even gift extra for birthdays and work anniversaries.
Personalising your approach
Before selecting benefits to introduce to your team, it’s essential to understand exactly what is important to them. Without this, your strategy is unlikely to be successful.
Using polls and creating a benefits committee can be useful ways to determine what matters most to your team.
If you would like any further information on the financial costs of introducing new employee benefits, contact a member of our team.