The Bargaining Chip: an employer’s guide to the value of benefits packages to business
As business has become more complex in competition over the years, so too has the need to retain staff become more complicated. A reliable workforce is as necessary to small business as it is to large, and continually increasing technology means staff has to be trained in ever more technically intricate capacities, which requires time and money from an employer.
Today’s jobs invariably come with a salary enhanced by a benefits package. So much so that benefits have become something of an emotional football in the recruiting game, pressurising employers to continually come up with ever more generous offerings to keep their staff from fleeing to better climes.
But bitter or sweet, the benefits pill has major advantages for all stakeholders – and particularly so for employers who should seriously consider the plus-factor in designing a fair and equitable package for employees. Yes, you may appear to be competing for favours, but as an employer you stand to gain real value in your business. A competitive employee benefits package has significant power to not only attract the best, but also retain the best.
Train and retain
If employees are coming and going it’s difficult to maintain smooth production and customer service. It makes far more sense to retain employees, thus eliminating financial risks attached to employee turnover. You need to establish a team of trained and experienced people to keep standards and performance at high levels. A high turnover rate is exactly what must be avoided. It’s costly to train staff only to have them take that training to a competitor merely because of a disagreement about benefits. By investing in valuable packages for your employees it shows you have their best interests in mind and value their contribution. This attitude helps you build a strong team who value the training they are receiving and consequent advancement potential of their career, and who are therefore more likely to commit to the long haul.
Consolidating your business
Keeping staff interested in their commitment will require some creativity on your part as to what you offer in employee benefits packages. It would be good to have packages that truly differentiate your business from the competition. Not only might you find yourself an employer of choice, but you’ll also be ramping up the profits as employees benefit from their uniquely customised remuneration. This provides your company with stability, which in turn attracts more staff to join you.
Showing you care and that packages are designed to better the lives of employees helps instil greater loyalty and higher productivity amongst staff. Meeting employees expectations, and going beyond, is a nifty way of staying ahead of the curve. Benefits are also a good bargaining tool when dealing with any disgruntled employees. When they understand the value of their package in meeting their needs, they are more likely to stay and contribute a more focused performance and better attitude.
Employee good health is business health
Healthier employees are better workers, it’s that simple. Employees feel more confident at work when they know they can rely on assistance with health issues. Keeping employees healthier means less absenteeism, and therefore higher productivity and greater profitability. Health benefits are a preventative advantage in any company. Sick leave keeps infectious employees at home and protects other workers.
Higher employee engagement
When employees know they’re getting the real deal, they will be motivated to work with greater efficiency. Productivity is enhanced. Therefore offering extra benefits that are unique and useful is always a good idea. Communication with employees may bring their needs to the fore, and if you are able to design packages that serve those needs, you will keep your top professionals positively engaged; they will feel their value to the company has been recognised and valued, and they will be keen to help you drive the business to becoming an industry leader.
When investing in group schemes via the company, employees are able to profit from lower premiums on a group basis, plus enjoying contributions from the company. Benefits are often considered as valuable as the salary itself; a factor that works in the employer’s favour, because money can be saved while still offering value to the employee. In addition, the employer benefits from tax deductions allowable on their contributions with regard to health insurance, life insurance, and pension plans. And as the employer, you will also be part of those schemes, benefiting from lower payments along with your employees.
There are always pro’s and con’s in any business plan, but the value of well-planned and developed benefits packages for your employees, aligned to the gauge of what you can afford as a small or large business, cannot be underestimated.
Empfin Solutions – the team that keeps your team happy
We’re an Old Mutual franchise with our primary focus on advising on and servicing umbrella pension and provident funds. Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.