Employers have high expectations to meet in the modern corporate world, and they’re rooted in the sense of satisfaction that they can facilitate for their staff through their internal benefits packages. Benefits (or ‘perks’) are an essential aspect of sustaining employee wellbeing, which in turn contributes to overall business success - and neglecting them will only send top talent elsewhere, finding an alternative employer that nurtures and supports their efforts.
What are employee benefits?
When we’re referring to employee benefits, we’re doing so in relation to anything a member of staff receives from a company on top of their contracted salary. Benefits packages vary between businesses, but a core employee benefit scheme (available to all employees, regardless of length of employment) usually includes health care and a pension scheme as a minimum.
How are employee benefits changing?
Certain societal factors have altered the weight that some employee benefits used to carry - for example, in the post-Covid working climate, four-day working weeks have significantly more gravity than ‘Friday beers’ once did. Employee perception of benefits has also shifted in line with this, with many individuals prioritising their own professional growth or sense of wellbeing over settling for benefits that didn’t sustain either of these values.
Why are employee benefits important?
Employee benefits are incremental in shaping the overall well-being, satisfaction, and productivity of the workforce - here’s some of the values that they can support within workplaces:
Attracting and retaining talent
Competitive employee benefits set companies apart in a crowded, competitive job market. Prospective employees often weigh the benefits package alongside salary, and an attractive offering can have a significant influence on their decision to join (and stay) with a company.
Enhancing job satisfaction
A comprehensive benefits package contributes to overall job satisfaction. Employees who feel supported and valued through benefits such as healthcare, flexible work arrangements, and professional development opportunities are more likely to be content and engaged in their roles.
Ultimately, employers that can’t relate the value of a well-thought out benefits package to their bottom line will breed the opposite kind of attitudes within their workforce.
Promoting a healthy work-life balance
Benefits like flexible working hours, remote work options, and generous paid time off contribute to a healthier work-life balance. According to Mental Health UK, 1 in 5 UK adults admitted that they’ve had to take time off work as a result of pressure or stress. Being able to balance work commitments with downtime acts as a remedy for this scenario, and it also fosters a more positive, sustainable work environment.
Increasing employee engagement
It’s a given that engaged employees are more committed and enthusiastic about their roles. Benefits such as professional development opportunities and training programs have been proven to contribute to higher levels of employee engagement. By enabling access to these initiatives, an employer makes a statement to their staff that they are invested in their individual advancement and growth.
What are some of the most meaningful employee benefits?
We’ve shortlisted some of the benefits that stand out the most to our candidates, outlining why they’re important and how they can enhance both the day-to-day and longer term experience for employees.
NHS top-up health insurance
With the NHS providing a baseline of health care coverage, many UK employers are offering top-up health insurance for employees, should they need it. This additional coverage ensures employees have access to quicker medical consultations, specialist treatments, and a more personalised healthcare experience. In some cases, this provision is also applicable to the individuals’ close relatives - giving the employee peace of mind should a loved one need access to these services.
Personal growth allowances
As we’ve outlined already, professional growth is the key to developing and encouraging an engaged workforce. Many firms embody this by granting period budget allowances for their team members, which can be spent on a breadth of different professional learning initiatives - from accredited courses, to mentorship schemes. This kind of employee benefit gives staff a sense of autonomy and self-growth, allowing them to further their skills in a way that suits them on an individual basis.
The outcome? Employees that want to use their new-found knowledge in their day-to-day roles, contributing effectively to business growth in their own way.
Pension schemes with employer contributions & education opportunities
While pensions are a cornerstone of employee benefits in the UK, their value is often understated and not properly communicated. Companies that offer pension schemes with generous employer contributions demonstrate a commitment to their employees' long-term financial well-being, encouraging them to plan for a secure retirement. To solidify this, many firms complement this provision with learning sessions, with the purpose of teaching employees about the importance of pensions and how they function as an asset.
Flexible working arrangements
Flexible working is relatively commonplace within many benefits packages nowadays, but it often takes a few different formats. Some companies accommodate flexible working hours for start and finish times, while others encourage employees to make their work suit their lifestyles - i.e, making the school run, or facilitating personal appointments within the working day. Others offer flexibility in terms of the location of their staff - from fully remote models, to hybrid approaches where a business determines some set office days.
Four-day working weeks are also beginning to feature within employee benefits schemes. In 2022, 70 companies and over 3300 workers participated in the biggest 4-day-week pilot in the world in 2022. One of the main conclusions was the sense of uplift that a 4-day-week promoted in terms of employee wellbeing and mental health. Beyond this, many UK workplaces have carried out their own independent trials to gauge their effectiveness of this kind of working model.
Physical health & wellness initiatives
Providing employee benefits that target and support physical health is another means of encouraging a better sense of wellbeing within teams. Giving employees access to a gym membership can help to improve mental clarity, focus, and productivity, leading to increased general performance at work. On the whole, prioritising physical well-being contributes to a happier and more engaged workforce - so this kind of employee benefit shouldn’t be overlooked.
Comprehensive mental health support
Mental health has a place at work, and employers need to actively recognise this by providing access to the right kind of support and encouraging transparency on the topic. Many employers have already invested in comprehensive mental health support, including Employee Assistance Programs (EAPs), and digital apps that provide counselling services, or meditation sessions. Many have furthered this by finding ways to facilitate discussions about mental health at work with drop in sessions.
Generous maternity, paternity and adoption support schemes
Family-friendly policies are crucial in attracting and retaining talent, and this applies to maternity, paternity, and adoption. Companies offering generous leave options that go beyond legal requirements demonstrate a willingness to support their employees during significant life changes.
Employers ought to ensure that their employee benefits are aligned with the things that matter the most to modern candidates. In doing so, they’ll maintain their appeal as a workplace that is genuinely invested in employee welfare and progress, making provisions that accommodate the person as a whole.
Looking for a workplace that is invested in providing impactful employee benefits? Find a role with a company culture that ticks every box on our job board, or make your next hire with Runa Recruitment today.