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What are Employee Benefits?

Employee benefits are additional non-wage incentives and compensation provided by employers on top of an employee’s normal salary or wage package. Employee benefits are designed to help attract, retain and engage the top caliber staff for a company and a way to ensure they are motivated and looked after. Employee benefits fall under an employee’s full compensation package and this needs to be looked at holistically. Employee benefits should form part of any business’s employee engagement strategy.


The most effective employee benefits should be tailored to the wants and needs of the organisation’s workforce, are simple to use as well as support the greater business objectives and corporate culture.


Different types of Employee Benefits

There are many different types of employee benefits which an employer can offer to its employees. An employee benefits package includes savings and perks on everyday spending, such as discounts at high street retailers, supermarkets, cinemas, travel packages, finance and insurance payments and more.
 
Typically, employers offer their employee benefits which include holidays and time off, above and beyond the statutory requirements, healthcare, enhanced maternity pay and pensions.
 
In addition, there are other voluntary benefits which employers can offer their employees, for example cycle to work schemes, childcare vouchers, car leasing, home technology savings, health screenings, employee assistance programs and more.  These employee benefits are also known as salary sacrifice schemes which offer both employees and employers both convenience and discounted pricing. They allow employees to pay for a range of products and services via automatic, monthly deductions from their payroll, allowing them to enjoy the benefits of a more manageable cash flow together with additional tax and national insurance savings.

 

 

Who can benefit from Employee Benefits?

Every full-time employee is entitled to core employee benefits that their company offers, despite the length of service and how long they have worked at the organisation for. Employee benefits should be available to all employees, despite their level within the business. However, senior management and leadership often have extra employee benefits which they have access to. If an employee is working on a part time basis, they need to check their contract to ensure they are entitled to employee benefits which are offered by their company.


What is the purpose of offering Employee Benefits?

Employee benefits are beneficial and can add a lot of value to both employees and employers alike.

 

For Employees

  • Help employees save money on everyday expenses
  • Add value to employee’s disposable income
  • Help engage employees and motivate them whilst at work
  • Improve employee wellbeing with desired offers such as discounted gym memberships
  • Help employees enjoy a work-life balance
  • Improve productivity levels
  • Create a coherent and passionate working environment because employees feel looked after

For Employers

  • Reduce staff absenteeism
  • Reduce staff turnover
  • Recruit top caliber employees and help retain employees
  • Boost morale and create a desired corporate culture
  • Have an engaged and motivated workforce who want to go above and beyond their call of duty


 

Employee Benefits Hub

An employee benefits hub is a single access point on a bespoke benefits portal offering employees access to all the benefit schemes available all in one place. These employee benefits hubs can be branded and fully personalised to match the company’s look and feel as well as reflect the organisational values and goals.

Both voluntary and salary sacrifice benefits can be listed and accessed in one place in a clear to use format for employees. Often this hub has promotional literature to promote the offers as well as real time analytics and management reports to see engagement levels, usage and registrations.


What are common Employee Benefits?

There is a plethora of common employee benefits which most employee benefits providers have on offer. They are usually listed categorically and can include the below:

  • Automotive
  • Financial and Professional services
  • Food and entertainment
  • Gifts
  • Home and Garden
  • Family and Kids
  • Shopping
  • Wellbeing
  • Travel
  • Cinema
  • Supermarkets
  • Days Out
  • Mobile

Lifestyle employee benefits seem to be very popular nowadays. These benefits can make a tangible difference to all employees’ quality of life. For example, by offering access to gyms at discounted rates, having savings at health stores, vouchers for different meditation apps and yoga / Pilates classes etc., can positively impact the holistic wellbeing of all employees.

 

Providing concierge services as part of an employee benefits package is becoming increasingly more accepted and is a great addition to any comprehensive voluntary benefits package. Concierge services tend to fall into three different categories:

1

Travel concierge: Flights, hotel and car rentals, Airport cars and parking, Last minute and city breaks, Bespoke holiday planning, Worldwide transfers, Holiday packages, Negotiate hotel rates, Experience and adventure, Airport lounge access, travel insurance and more.

2

Ticket and social concierge: VIP restaurant reservations, Guest List nightclub access, Sporting events & packages, Theatre tickets and packages, Concerts and operas, Private club membership, Movie premieres and galas, Indoor sporting challenges, Fashion shows and more.

3

Personal concierge: Last minute tables, Book car hire, Access to events, Gift sourcing, Dining & Parties, Hotels, Health, beauty and fitness, Invitation only events, plumbers, builders, nannies, babysitters and more.


Best ways to implement an employee benefits scheme

With all employee benefits programmes, it is crucial to initially create an implementation plan, detailing the comprehensive infrastructure of your scheme, what platform you’ll be using, which benefits and categories you plan to implement and how the business will best communicate the various aspects of the scheme to all employees. If a business plans on going the full mile and taking the time and effort to introduce such a package, it is crucial to plan the launch correctly so it has a positive uptake with all employees.
 
A checklist is a great way to ensure the employee benefits programme which is about to launch will be effective. Below are some crucial questions to ask before launching:

  • Do these employee benefits fit into my HR strategy?
  • What am I hoping to achieve by providing these employee benefits?
  • Do my employees want these employee benefits? How do I know they will use them and benefit?
  • How will we best communicate our new employee benefits?
  • What are the implications to the business and employees in terms of tax, employee contracts and so on?
  • What do competitors offer? How do my employee benefits differ and are they more competitive?
  • How will we best communicate our new employee benefits?
  • What are the implications to the business and employees in terms of tax, employee contracts and so on?
  • What do competitors offer? How do my employee benefits differ and are they more competitive?

Employee Benefits Case Studies

Learn how some of Xexec’s diverse client base drives engagement with real life examples and case studies on employee benefits, employee recognition and customer loyalty. Gain some insights and see how employee benefits managed to solve the business problems at hand with some bespoke solutions.


Summary of Employee Benefits

The idea of offering employee benefits isn’t particularly new, but many orgsanisations still don’t really understand what it fully entails, the time and effort it requires, as well as the positive outcomes which can emerge from implementing a successful employee benefits scheme. There is so much to be gained from both the employees and employers side so it truly is a win-win solution.