What financial benefits could an employer provide?
Bonuses/commission, health care, death in service, dental care, pension contributions, additional annual leave, occupational sick pay and maternity/adoption pay schemes, childcare, fitness plans, compassionate leave etc
What is the benefit for an employer providing financial benefits for their employees?
Like or not, we are in the business of competing for a high calibre of employee when we recruit. Of course the employee needs to fall in love with the business and job when they come for the interview, but you need to attract them to begin with. If your employer offering is too low in comparison to competitors, that may be what prevents an applicant from applying for the job as well as accepting an offer when it’s on the table. A high percentage of employees leave organisations too because their ‘package’ (salary and benefits) no longer meets their criteria.
Employee’s needs and desires change over time, so ideally you want to be looking at ways to keep them engaged with their current package as well as new financial and non-financial packages.
When you’re a start-up you’re not always in a position to provide the ‘nice to have’ financial benefits. This is something that can be visited at a later date, however, it is always worth knowing what employee package your competitors offer in case you have to visit this earlier than anticipated when you are finding it difficult to attract a high calibre of individuals.
However, you cannot avoid providing the minimum benefits under employment law, which must be at least: statutory sick and maternity/adoption pay, 20 days annual leave, automatic workplace pension etc. In order to meet the minimum criteria, it is worth discussing with your HR Consultant, as well as get them to help you draft your employee contracts of employment to ensure they are all included and don’t forget your employee handbook is equally as important and it sets out the procedures and policies in much more detail.
Statistics show that only 20% of your workforce is motivated by money (their total remuneration package). Many staff are motivated by their employer, they become fans of the employer, they feel valued and so forth.
Managers can very easily motivate their staff by praising them more regularly; giving recognition when it’s due (employee of the week/month/year); improving the office (painting walls, flooring, lighting, replacing broken equipment etc); improving workplace relationships; giving more development opportunities (shadowing in a new team); enhanced decision making; dinner with the CEO; the introduction of a discount scheme; holiday buy-back scheme and much more
Please contact us if you want to find out about statutory, financial and non-financial benefits.