When times are tough – socially, culturally or economically – businesses tend to double down on their cost-cutting strategies to help them weather the storm. From a business point of view, this makes perfect sense and could lead to profitability overall.
However, employees are often caught in the cost-cutting firing line and when dedicated staff feel undervalued, it can have serious cost implications for your company. But being undervalued often has little to do with getting a pay increase.
In fact, many employees are more likely to stay committed and loyal to their employers if they offer a robust and generous benefits package. Initially, a benefits package might feel like a big cost for your company but benefits for staff mean benefits to your business.
High staff turnover is expensive, so if you can inspire loyalty in your teams you could save thousands of pounds. So how can employee benefits help save you money? And what benefits do employees want?
With the average cost-per-hire for a new employee sitting at over £3,000, keeping staff turnover low will save your company money. The average annual turnover rate in the UK is nearly 20%, so for example, a company of 100 staff members would end up forking out over £60,000 per year in recruitment.
With a benefits package that keeps employees feeling valued and inspires loyalty, you would save money. By increasing loyalty by just 10% and retaining more staff you would end up with thousands of pounds of savings per year.
It has been proven that most employees (nearly 80%) would choose to have additional benefits over a pay rise and nearly 70% would choose a new job based on the employee benefit scheme they offer. But what are employees looking for?
Most employees are looking for benefits that relate to health and well-being, childcare, shopping discounts and life insurance. One employer who does this well is Carole Nash. The classic car insurance company offers a range of employee benefits such as gym membership, bike schemes, childcare and more, and have been highlighted for their employee retention.
Industry appropriate benefits are also a great draw too. For example, if you run a creative business, perhaps offering paid-for creative courses such as pottery making to your team.
The cost of benefits will vary depending on what you offer and the size of your company. However, if you choose employee benefits over annual pay rises, you will certainly find them to be the cheaper option.
After all, a happy, loyal and dedicated workforce is far more likely to be productive and stay with your team. Saving and making your business money.