Some organisations are deterred from offering employee benefits because the implementation costs seem high and it is difficult for them to see how they will get a return on their investment. However, the reality is that offering employee benefits affords a number of advantages for both employers and employees alike, many of which are enough to offset the associated costs.
Consider these five advantages of offering employee benefits:
- Increase appeal (attraction and retention)
- Boost morale
- Reduce staff turnover
- Boost employee health & wellbeing
- Increase productivity
While recent research has shown that Private Medical Insurance (PMI) is the most desired benefit for employees, there are actually some employee benefits that cost hardly anything at all to implement. In fact, the two we are about to look at are likely to not cost an employer anything to run.
Bike To Work Scheme
The daily commute in to work is a necessary evil that employees have to endure. Depending on their chosen means of transport, travelling to work can be expensive, mentally draining and time consuming for employees. It’s no wonder then that more and more workers are choosing to swap their cars for bicycles.
The bike to work scheme enables employees to purchase a new bike (up to £1,000 including equipment) for use on their daily commute in to work and in their leisure time. Because it is a salary sacrifice scheme, both employees and employers can make significant savings in income tax and NI – as much as 42% of the overall value for employees.
With the bike to work scheme, employees benefit from reduced travel costs and improve their health at the same time. Employers get a happier, healthier workforce in the process, as well as tax and NI savings.
Holiday trading is basically as its name suggests. It allows employees to buy and sell annual leave. Again, like the bike to work scheme, holiday trading allows employers and employees to make tax and NI savings.
Furthermore, employers are able to determine how the holiday trading scheme will work in their organisation. For example, the scheme can be setup so that employees can just buy holidays or just sell holidays.
Holiday trading is especially popular today because employees are increasingly looking to take advantage of flexible working practices. Holiday trading allows staff to take extra days off to go on holiday or spend more time with their family.
By enabling their staff to achieve a better work-life balance through holiday trading, employers can show they care about the welfare of their employees and appreciate the value of such initiatives.
An important thing to note – especially with the bike to work scheme – is that the higher the take-up, the more employers can save in terms of tax and NI, which is why effective communications that encourage participation are a must.
Interested in finding out more about the bike to work and holiday trading schemes? Maybe you would like some more information on other employee benefits? Either way, we can help!
A highly motivated result’s driven individual with a wealth of experience in the Healthcare & Group Risk market. I have established strong relationships with large multinational clients through excellent interpersonal skills. I have advanced listening, negotiating & influencing skills that allow me succeed in a team based environment. I have comprehensive knowledge of the UK Healthcare & Group Risk market. This knowledge has been obtained through the Chartered Insurance Institute & self study.