The Benefits of Employee Benefits
Achieving staff satisfaction and loyalty is not just about salary (although it helps!), it’s about the whole package and the culture that you as an employer provide. A pertinent illustration of this are the results of a recent survey showing that 61% of staff would consider changing jobs to increase their holiday leave and 1 in 3 indicated that they would take a pay cut to secure more days off.
These latest findings bolster the case for ensuring good employee benefits to assist with recruitment and ultimately retention as well.
Most companies will be fully aware of the logistical cost of replacing an employee with expenditure such as advertising costs and agency fees, as well as invested time such as interviewing prospective candidates. But the money lost in productivity during handover and induction periods can spiral even further and this is a factor that is often not properly considered. A study by Oxford Economics last year estimated that these could run at a whopping £30,614 per employee.
With the costs of recruiting taking a serious chunk out of budgets SMEs should be reviewing how they can retain their staff for longer. Providing the right mix of employee benefits can be a critical component in a successful long-term plan for attracting and retaining employees, proving to be the competitive advantage employers need to succeed. And it needn’t cost the earth either.
Giving your staff access to these benefits will not just mean you increase your chances of holding on to them it can have the bonus of delivering improved business performance as well. Research has repeatedly demonstrated the links between the way people are managed, with the attitude of employee and business performance.
Here are just some of the bonuses of providing good employee benefits:
For the employee
- Increased self-esteem and sense of wellbeing
- Improved staff morale
- Increased productivity levels and greater engagement between staff
- Increased job satisfaction
- Reduced stress and reduced absences due to physical or mental illness/injury
- Improved general health and mental health
- Increased skills and desire to develop
For the employer:
- A framework for a well-managed health and safety programme
- Reduced staff turnover which reduces ongoing costs associated with recruitment and training
- Reduced levels of sickness absence resulting in improved productivity and a drop in additional costs associated with capacity shortage issues such as costs of temporary cover/training, missed deliveries/contracts and related reputational damage, reductions of morale/productivity of remaining team
- Increased engagement between all levels of the organisation promoting a greater sense of inclusion and idea-sharing
To find out about our HR Dept Benefits and how we can help you with the recruitment and retention of your staff just give us a call!