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The costs and benefits of Employee Protection

More than one-fifth (21%) of jobseekers consider group risk benefits to be a key selling point during recruitment interviews.1 But what benefit do these benefit schemes have for you, as the employer?

Employee engagement and retention is key for employers looking to build a more united long-term workforce. Employee engagement covers everything from individual commitment to company goals, to overall mental wellbeing in the workplace.

A recent study found that those partaking in employee share schemes demonstrate 10% more engagement than those who don’t. Employee retention also proved to be much higher when such schemes were in place.2 This not only indicates a more stable state of emotional wellness among employees3, but further points to an increased productivity within the workforce.

Despite the name, employee benefits don’t only benefit the employee. By offering sought after benefits, these packages also benefit employers by providing a wider choice of candidates at recruitment stage, and an increased retention rate thereafter.

Types of employee benefits

There are a number of different employee benefit schemes. Employers may choose to invest in one, or multiple schemes depending on the size of their company and demographics of their employees for example.

It is key to remember that different schemes might be more attractive to different employees depending on their stage of life and their current circumstances.4

These are some types of benefits you might consider:

  • Benefits providing for old age
    Pension benefits allow employee to save towards retirement.
    The most common type of pension scheme is a ‘defined contribution’ pension. This is where both the employee and the employer regularly contribute a set amount of money to an individuals’ fund.

  • Benefits providing for illness
    While it is a legal requirement that employers cover up to 28 weeks statutory sick pay, some employers choose to offer more than this. This is called Occupational Sick Pay (different rules apply for agricultural workers).
    Other health benefit schemes include Dental and Optical insurance, Private Medical Insurance and Health Screening.

  • Benefits for the future
    Saving schemes are sometimes offered in the form of Share Schemes or Workplace ISAs. While share schemes are usually safe, it’s important to remember there are no guarantees in ISA investments – they can go down as well as up.

  • Life insurance
    Life Insurance provides employees’ families with security if they should pass away during the covered period. Some employers offer ‘Death in Service’ benefit, which usually pays a tax-free sum calculated in accordance with yearly salary.

A full employee benefits strategy should include a variety of schemes to cater for differing needs. To create a strategy that will benefit all your employees, contact Jelf to speak to one of our trained benefits consultants.

Educating your employees

As well as offering a range of benefit options, you should also invest in educating your employees. Educating your employees about your schemes will enable them to make the most of their benefits. It will also enable you to see which schemes are worth your continued investment.

Take a look at our financial education section to understand more about employee benefits.

 

Sources

  1. employeebenefits.co.uk/employers-risk-benefits-selling-point/
  2. employeebenefits.co.uk/aviva-share-plans-retain-engage/
  3. theceomagazine.com/emotional-wellness-programs-drive-employee-engagement/
  4. unum.co.uk/employee-benefits/
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