Why offering employee benefits saves both you and your staff money
Think offering your staff employee benefits will eat into your budget? Think again.There are actually a number of employee benefits which can save you money as well as your employees. Here are some of the most popular options:
1) Childcare vouchers
Childcare is a huge cost for working parents, with the typical cost of a full time nursery place for a child under two coming in at around £177 a week.
Offering childcare vouchers through a salary sacrifice scheme can help parents save hundreds of pounds a year as they pay their childcare costs before their salary is subject to tax and National Insurance. Parents can save as much as £933 a year each and employers also save cash, as the amount of vouchers each parent receives is exempt from employers’ National Insurance Contributions.
2) Flexible working
Flexible working can help employees achieve a better work/life balance by working from home or shifting their hours around. It can also help employers cut their overheads by making use of smaller offices and less equipment. A poll by workspace provider Regus found that 7 out of 10 businesses see flexible working as a way to save money.
3) Bike to Work schemes
Cycling is becoming increasingly popular in the UK and many people are taking advantage of the Cycle to Work scheme to get their hands on some cheap wheels – 183,423 employees took part in 2014. Under the scheme, employees can get bikes tax-free and spread the cost over a year, with their contributions being automatically deducted from their salary before tax. The scheme is completely free for employers and for every £1,000 spent on a bike, employers save around £138 in National Insurance contributions.
For more information about the scheme and to register your company, head to the Cycle Scheme website.
4) Pension contributions
Workplace pension schemes help employees prepare for their future and making contributions on their behalf can save the company up to 33.8% on tax and National Insurance contributions.
Don’t forget that providing employee benefits can also save your company money in the long run, in terms of reducing employee turnover and even lowering sickness absence. Providing a well-rounded benefits package can help you to retain your talented staff, meaning you could be spending less on recruitment fees and the loss of productivity. Additionally, having services in place to spot the signs of illness early on could prevent a situation from getting worse – like having an employee going off on long term sick.
People are a company’s best asset, so if you’re keen to look after the wellbeing of your staff, perks and benefits are a great way of showing your workforce that you care.
This article was provided by Unum.