The number of different employee benefits that are available seems to be growing by the day. Introducing an employee benefit scheme can have a hugely positive impact on your business, but this will only be the case if you choose with care. Continue reading to discover the factors you must consider.
The type of benefit package:
Firstly, you need to have an understanding regarding the different benefit packages that are available. A core package is the standard package all employees receive no matter what. Flexible benefits in the main are paid for by the employer yet the employee can still opt in or out. Voluntary benefits are those whereby a preferential deal has been negotiated by the employer yet the employee pays for this from their own net salary. Finally, salary sacrifice, which is one of the most popular options, is a tax efficient way of accessing benefits, as employees choose to sacrifice part of their gross earnings in return for a particular benefit. So, you need to decide what scheme you are going to implement. This will be dependent on the size of your company, the expectations of your employees, and your level of investment.
You then need to consider what type of benefits you are going to offer. Are you thinking about running the Bike to Work scheme? Do you think your workforce would appreciate childcare vouchers? It is important to carefully consider your workforce to determine what incentives are right for them. There is no point in offering childcare vouchers as a benefit if most of your workforce is made up of young men without children. There is no harm in discussing it with your employees either; this is encouraged. However, you should make it clear that what they choose may not be the incentive that is given and that you’re just trying to gain a well-rounded opinion.
So there you have it; the basics regarding the decisions you need to make when choosing the right employee benefits for your business. Use this as a starting point to help you make the correct decision.