A happy workforce is generally a more loyal and productive one. According to one Oxford study, worker output is 15% higher when satisfaction, breaks, and working hours are optimal. Moreover, a happy employee is more likely to feel a strong sense of connection to their workplace – fostering engagement and loyalty.
There are many reasons why promoting worker wellbeing is beneficial to both employees and business directors. Yet how can the latter encourage a happy workforce? One practical method is to develop a healthy set of protection perks which workers are likely to see as valuable.
Below, our Carlisle financial advisers at Vesta Wealth list some of the best employee benefits which directors and owners can offer to encourage productivity, retention, and brand advocacy. We hope these insights are useful to you. Please contact us for more information or to speak with a financial adviser:
t: 01228 210 137
e: [email protected]
Creating an attractive workplace culture
Worker absences can be very detrimental to a business. A missing salesperson can lead to lower revenue growth as fewer customers come on board. Fewer customer service representatives can harm a company’s public image as customer problems are resolved slower. An absent manager can lead to lower morale and task focus within a team.
Since 2020, COVID-19 and, more recently, the cost of living crisis have put a lot of pressure on workers. This is setting aside the issues which may be going on in an individual’s personal life such as relationship trouble, money problems, or mental health struggles.
No employer can “magic away” workers’ problems. Yet a supportive, understanding employer is more likely to get the most out of an employee despite the challenges they may face. Early intervention, for instance, could help prevent a health concern from becoming a long-term issue which seriously undermines an individual’s ability to perform their job.
Directors and owners can take practical steps to support staff amidst their struggles. One option may be to offer a clear route for workers to find counselling, physiotherapy, and other treatment without shame, judgment or repercussions. Regular training about mental health can encourage support and understanding between workers when they are going through a hard time. Tools and advice can be offered to encourage healthier lifestyles.
Offering workplace benefits
These ideas can help to create a workplace culture which values mental health conversations. After all, feelings of isolation in a mental health struggle – and fear of asking for help – can lead to a downward spiral for workers which can compound the problem. If staff believe that leaders will listen and be sympathetic when approached about a mental health struggle, they are more likely to speak up and find the tools they need to cope or even thrive.
Directors and owners can also provide concrete benefits to workers which foster a sense of collective ownership and loyalty. Group income protection, for instance, can help employees believe their finances will be supported beyond Statutory Sick Pay (SSP) if they fall ill or have an accident. The employer can also rest assured that the policy will pay the employer’s National Insurance contributions for that employee whilst they are absent.
Another option is to offer “death in service” to workers who may be concerned about what would happen to their loved ones if they die during their time of service. In such a scenario, a lump sum can be provided (e.g. 3x the worker’s salary) to the surviving family, helping them gain more financial stability as they adjust to life without the worker’s income. Group private health insurance (PHI or PMI) could be another attractive perk to offer employees.
Do not forget pensions
It may be tempting to assume that workers are only drawn to the “immediate perks” of an employee benefits package. Yet this is not the case. Many will want their organisation to support them in building up a strong future retirement fund. By law, in 2023-24 an employer is only required to contribute 3% of a worker’s salary to their workplace pension under the UK’s auto-enrolment rules. Yet what if you provided more than the bare minimum to your staff?
For instance, some employers offer a “match scheme” – e.g. if a worker contributes 10% to their workplace pension then the company will also contribute 10%. For a company, there can be a tax advantage to offering generous pension benefits, too. After all, employer contributions can be deducted as a taxable expense – potentially lowering the corporation tax bill.
There are many other “employee perk ideas” to explore with a financial planner, such as flexible/remote working, cycle-to-work schemes, or even a 4-day week. The right combination of benefits is likely to change from business to business depending on the specific needs and circumstances of owners, workers and enterprises. Speak with a financial adviser to explore your options using the best available information and insights.
Invitation
If you would like to discuss your financial plan and retirement strategy, then we would love to hear from you. Get in touch with your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
Reach us via:
t: 01228 210 137
e: [email protected]
This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.