How employee benefits offer value for money

If you want to provide great employee benefits but are constrained by budget, there are some company perks that not only keep your employees happy, but can also provide serious value for money. Whether it’s leveraging tax-efficient Salary Sacrifice schemes or taking a more holistic approach such as flexible working, it’s definitely possible to offer great benefits while boosting your bottom line.

There are a few different employee benefits that provide differing levels of value for money, along with enhancing employee satisfaction and loyalty. Here’s a look at some of the most impactful:

Salary Sacrifice Schemes

When it comes to tangible cost-saving benefits, Salary sacrifice schemes take the top spot. These schemes allow employees to exchange part of their salary for non-cash benefits.

Payments come out of an employee’s gross salary before PAYE and National Insurance, meaning they pay less tax, and your business saves on Employer National Insurance contributions. Some of the most popular schemes include:

Cycle To Work Scheme

Cycle schemes are a cost-effective way to get employees moving! Your business buys an employee’s cycling equipment through an approved scheme, and they pay you back over 12 months.

Electric Vehicles

Help employees to save money on what is typically a significant and costly purchase, all while embracing an eco-friendly mode of transportation. Your business fronts the cost of leasing an electric car, and the employee pays you back over a set period of time.

Workplace Pensions

A great way to boost your employees’ pension pots! By opting to contribute a portion of their pre-tax salary into their pension, they can enjoy immediate tax and National Insurance savings. With 40 percent of employees experiencing money worries, according to the 2024 Drewberry Workplace Satisfaction Survey, salary sacrifice is a great way to help your team with larger purchases and save tax in the process.

Wellness Perks

Group Private Health Insurance is a fab benefit to offer, but can be out of the price range for a lot of businesses. We know a healthy workforce is a happy workforce, and luckily, there are more budget-friendly options that can deliver a return on investment.

Benefits such as Corporate Health Cash Plans are an affordable way for you to help with your employees’ routine medical costs. They cover everyday healthcare expenses, encouraging employees to seek early treatment and thus reducing the likelihood of prolonged absences.

Plus, Cash Plans usually come with additional perks such as Virtual GPs, wellness apps, and counselling services which can offer much-needed support, getting employees on their feet and back to work faster.

Flexible Working Arrangements

Flexible working is a great way to boost employee satisfaction while providing value for money. By enabling employees to work from home, you cut down on the need for large office space and save on utilities costs. Additionally, it gives much needed flexibility to your employees, leading to higher retention and lower recruitment costs.

According to StandOut CV, having a mostly remote workforce can slash operational costs by a third, and over 20% of UK businesses say remote working has reduced their absentee rate, saving them money on sick pay. And as our 2024 Workplace Satisfaction Survey found, flexible and remote working is the most-valued benefit for UK employees – so it’s a smart move to implement it.

Learning And Development

Learning and development is heavily linked to improved employee retention. A study by Culture Amp found that employees who feel their development is prioritised by their employer are 21% more likely to stay with that business.

Investing in your employees’ growth can pay off in multiple ways. When employees feel skilled and valued, they stay longer, which means you spend less on hiring and training new people. Plus, skilled employees adapt better to new challenges, saving time and money in the long run.

Over 25 percent of employees say training and development opportunities are the most important factor when choosing a new employer, and employees with fresh skills bring new ideas that can save costs and keep your business ahead of the competition.

Want Real Value For Money? Swap Less Popular Perks For Pensions

If you’re struggling to pull together a cost-effective but impactful benefits package, the 2024 Drewberry Workplace Pensions Survey found that 60 percent of employees would actually prefer bigger pension contributions over other benefits. And the best part? There’s a cost-effective way to increase employees’ pension pots AND save your business money at the same time: Salary Sacrifice Pensions.

This type of pension gives pension pots a little boost, and can even increase employee take-home pay at the same time. By opting to contribute a portion of their pre-tax salary into their pension, they can enjoy immediate tax and National Insurance savings, as can your business.

For example, if an employee reduces their salary from £30,000 to £28,500, you only need to pay employer National Insurance contributions on the reduced £28,500 salary.

With the savings you make, you have a few different options:

• Reinvest them back into your business
• Pass 50% or 100% back to your employees to either top up their pension contributions or boost their take-home pay
• A mix of both.

Despite Salary Sacrifice being a saving-savvy option for pensions, 56% of employees either haven’t heard about it, or don’t understand how it works. And if you’re wondering whether the interest is there, it is: 47% of employees want to learn about the tax efficiencies that come with Salary Sacrifice Pensions.

So if you want to spend your benefits budget where it matters – and boost your bottom line in the process – upping pension contributions is a great place to start.

Budget-Friendly Benefits

Every pound spent on employee benefits is a pound that could boost your profits. That’s why it’s vital to ensure your benefits package aligns perfectly with what your employees need and value. When done right, your investment in employee benefits can yield significant returns.