Employee Benefit Schemes – Why They Are Important

Businesses of all sizes and in every sector rely on committed employees for their company to run effectively. Commitment comes from feeling valued, and using employee benefit schemes is one of the easiest ways to show your staff that you appreciate their time and effort. When run effectively, these schemes can also support business growth.

Employees are on the front line; they are the link between your business and your customer. This link is at its strongest when staff feel valued and appreciated. As well as providing excellent working conditions and listening to their ideas, you can support this by helping their salaries go further. An employee benefits scheme does exactly that; it provides the employee with benefits, such as access to private health care, or gym memberships, that they would otherwise not be able to easily afford. Other benefits that you might consider offering to employees are run via salary sacrifice. This involves the employee giving up part of their financial package in return for a non-financial benefit. The most common form of this is childcare vouchers and the main benefit to the employee is that the amount sacrificed is taken from their gross wage rather than their net wage. This leads to savings in Tax and National Insurance as well as cheaper child care. Workplace pensions are also often run through this type of scheme, with the additional bonus of a matched amount that is then added to the pension pot by the employer. Employees who see the benefits of working for your company, are not only likely to be more productive, but also stay with you over the long term, providing more continuity of service and experience.

Running employee benefit schemes should benefit both staff and the business and one of the easiest ways to ensure this is the case is to use an expert. At Team Rewards, we will aid you in setting up and running the right rewards program for you. Visit us at http://teamrewards.co.uk/ for more information.