The Importance of Employee Benefits in your Business

It goes without saying that businesses are often restricted by the same factor. Money. They cannot simply hand out pay-rises and bonuses when they are facing pressure from their employees to do just that.

This drives them to consider alternative incentives that go beyond financial rewards – this is where employee benefits packages come into play. But what exactly does this mean for your business and how can you ensure that you have implemented an attractive enough package? Let’s find out…

Why should I offer employee benefits?

Despite many thinking that benefits packages are a thing of modern times, they have actually been around in some way or another since the early 1900s. Back then, they took the form of sick pay, state pensions, and the NHS. These state benefits are now the norm, and businesses have since been looking at ways to develop more generous and exciting rewards.

But why? The simple answer is to attract, retain and motivate current and future employees. This was at least the main reason when more comprehensive packages were first introduced, however now, the decision to offer benefits more so takes into consideration the happiness and wellbeing of your team.

What can result from creating a more fulfilled and content workforce through benefits packages?

  • More motivated employees
  • A team who feels appreciated and heard
  • Enhancing employee commitment
  • Boosted morale
  • Happiness increases creativity
  • Increased loyalty = reduced recruitment cost
  • Reducing stress increased productivity
  • Happier employees typically take more risks

Whilst we could bore you with a hundred more reasons why it is important to have a happy workforce, its importance is clear not only for their own wellbeing but for the long-term gains of your business.

Why are people attracted to businesses with exciting employee benefits?

  • 80% of employees would choose additional benefits over a pay rise.
  • 69% of employees would choose one job over another if it offered better benefits.
  • 75% of employees are more likely to stay with their employer because of their employee benefits package.

If these stats aren’t quite enough to convince you about the importance of employee benefits, let’s explore why it is that employees are attracted to benefit packages.

To us, and we’re sure to most others too, happiness is the most important thing. People want to enjoy their lives. Therefore, since most people will spend the majority of their life in a job, it means that employees will want to be happy at work – makes sense, right?

Whilst financial rewards are typically highly desired, it is not always possible to reward employees simply through monetary means. Plus, this can often be seen as a cop-out – a way to quickly satisfy an employee’s need without really taking into consideration what may deliver well-needed added value.

By offering benefits that enhance the lives of your employees, you are being a driving factor in the likelihood of them achieving happiness and fulfilment. Not only will they feel valued for the work they are doing, but they will be able to enjoy a more well-rounded lifestyle.

Such benefits that will contribute to this happiness include:

  • Flexible working policies
  • Employee discounts
  • Mental health days
  • Subsidised gym memberships
  • Mindfulness apps
  • The ability to buy and sell holidays
  • Development programs
  • Free breakfasts/coffees etc

Whilst some of these may seem relatively small changes that you can make in your business, by offering a mix of different benefits, the well-being of your team will be enhanced in more ways than you could imagine.

Is it time you checked up on your employee benefits?

If you are asking yourself this question, the answer is most likely yes.

Are you noticing a higher-than-expected turnover rate? Is your business facing a dip in productivity? Is your recruitment process a long and painful one? Are your employees calling in sick more than you’d expect? Do you notice the little things getting to your team more often?

These issues may well have nothing to do with your employees’ experiences at work, but is this to say that you still shouldn’t take the time to make the steps to minimise the effects of any upset they may have in their lives?

Simply having a bowl of fruit on the table and the tea bags replenished each day isn’t enough. But before you go gung ho into a whirlwind of planning, organising, and implementing an arbitrary benefits package, speak to your employees!

It may sound obvious, but if you want to check up on your employee benefits effectively, then speak to those who will be receiving them. Ask what it is that they would look for, what gains they desire from a package, why it is that they want it, and how would be best to go about pulling a package together.

Another thing to remember is that one size doesn’t fit all! One person’s idea of a reward may be completely redundant for another, so consider all options and find a way to tailor each benefits package to suit the individual needs of your team members.

What next?

If reading this has got you thinking that it might be time to rethink your employee benefits offerings, then be sure to check out my new page dedicated to all things employee benefits and our brand-new employee benefits guide.

Or better yet, get in touch to discuss how we can redesign your benefits package to create a happy, productive, and loyal workforce.

Call us on 0330 555 1139 or email