The success of the company not only lies in the top management but also with major help from their hardworking employees. As an appreciation for these hardworking and passionate employees, employees should give some form of compensation to them. There are a lot of employee benefits providers in the UK that can help business owners in giving proper compensation for their employees.
For one thing, all employers are mandated by law to give employees proper benefits and compensation. Such benefits can be added to the employers’ costs every year. However, company benefits are what most applicants usually look for when looking for. Likewise, employees are more likely to stay if the company benefits are attractive enough.
Having said that, the type of employee benefits will make or break the company’s future. It may not be a major issue for big-time, established organizations. But for start-ups, it should be well-considered and planned. They have limited cash flow as of now, so it is important for them to create a compensation plan that would be a win-win for both parties.
Company benefits: Pros and cons
Company benefits and compensation are some of the first things applicants would look into before accepting a job. After all, they are working not only for the company but for the paycheck. Otherwise, applicants may be discouraged by applying for a company that doesn’t provide benefits for their employees. However, there are two sides of the coin in terms of giving employee benefits.
- It helps in attracting and retaining employees in the long run.
- It can help businesses save. Instead of a higher salary, it can be compensated by an attractive benefits package.
- Businesses can get a tax advantage in terms of plan contribution deductions.
- May not be applicable for smaller businesses/start-up companies due to limited budget/cash flow
- The more benefits offered to employees, the more expense incurred by the company
- Any mistakes in making compensation plans may lead to lawsuits and penalties.
Common employee benefits that companies should offer
Job hunting can be a challenge because applicants need to have certain skills to be considered by the company. However, companies also have to choose the right candidate carefully to achieve their business goals.
To attract applicants, companies should be aware of what applicants would usually look for in a compensation package. Aside from the usually paid leaves and insurance plans, other benefits that can attract applicants include the following.
- Fitness and wellness programs (e.g., Starting a “Biggest Loser” contest in your office, health and wellness seminars, etc.)
- Flexible work schedules (e.g., telecommuting, having a flexi-time work schedule, etc.)
- Retirement plans (aside from health insurance)
- Providing development and training programs for the employees
- Educational assistance for employees and their dependents
- Incentive programs (e.g., gift checks for achieving sales targets, perfect attendance, etc.)
- Overall conducive and friendly work environment
These are only some of the most important benefits employees deserve to get after all the hard work they have invested in the company. At the end of the day, both employees and employers should work hand-in-hand for the success of the company.