The hybrid working model seems to be here to stay. Employers are trying to find ways to attract talent in an employee-driven marketplace, with many introducing employee benefit packages as a means to entice and retain. And it seems to be working. Employee benefits are proving to be a huge draw for potential hires. Companies that have introduced employee benefits have been shown to increase productivity and company loyalty.
First of all, let’s quickly discuss what exactly flexible benefits are. We all know the standard conventional benefits such as maternity leave, pension schemes and sometimes health insurance. Employee benefits are an extension of these with the addition of more diverse benefits such as gym memberships, cycle to work schemes and even pre-natal classes.
The main reason behind employee benefits is giving your employees the freedom to choose which benefits they would personally prefer based on what suits them at that stage in their lives. It shows the company cares about the employee and is proven to increase talent attraction and retention in the company. The employee feels more in control and content within the company and it builds a healthy relationship between the two.
Having benefits such as gym memberships, cycle to work schemes etc. available for employees can have a positive knock-on effect on the business. For example, Exercise is known to have a positive effect on health both physically and mentally, this will reduce absenteeism and save money in the long run.
One of the first steps is to assess your business and see if employee benefits will suit your employees and the work environment. Following this, you must then decide if you want to implement the new benefits system yourself or outsource it to save time, there are many online consultants that do this. You must then take note of what you hope to achieve from the benefits plan, this is important to assess whether or not the new system has worked.
If you choose to develop your own employee benefits plan, you must decide how you wish to calculate the cost of the benefits. You must ask yourself: how much of the costs with the company cover?
Will the employee be expected to pay a percentage towards the benefits? If so, how much?
After careful consideration, you must then decide how much you are going to put aside for each employee’s benefits. There are two ways of doing this, you can either put aside a percentage for each employee, based maybe on how long they’ve been with the company or you can decide to implement a flat rate for each employee, no matter how long they’ve been with the company.
You must now choose which benefits you would like to have for employees to choose from. It is important to create a diverse list in order to suit any employee at any stage in their lives. Some examples may be:
Deciding on the method of enrolment, hardcopy or an online form to fill out? You must also decide and outline the terms of the employee benefits. Things such as change-of-mind or a change in the employees’ circumstances may lead to them wanting to change their benefits plan. Employers must outline the terms and conditions before the employees sign onto the new plan. You must then promote the new employee benefits plan throughout the company and make the employees aware of it.
Evaluating the success of the benefits plan. Following an adequate amount of time elapsed with the new benefits plan in place, circle back to step one and see if it is on track to obtaining your original goal.
Overall, employee benefits help create a better employee experience, making your business a more attractive place to work. Also, if your current employees are getting more from their employee benefits, they’re much more likely to refer talented candidates to you to fill new roles.