Employee benefits

Why are employee benefits important?
The provision of employee benefits is important for all organisations. In an increasingly tight employment market, a varied and flexible set of benefits is a useful recruitment and retention tool. It’s one of the ways that employers can truly distinguish themselves from competitors.
What is the most important benefit?
The most important benefit is the provision of retirement benefits. Not only is this the biggest cost for employers but increasingly, employers feel obliged to care for their employers beyond employment. Pensions are obviously now a mandatory benefit when you employ your first worker and with contributions at 9% (including tax relief), it’s a sizeable sum. It’s therefore wise to invest this carefully.

In today’s multi-generational workforce, it is important to not just provide one size fits all employee benefits. The differing needs of each generation requires a flexible approach.

For instance, enhanced retirement benefits, flexible working, life assurance and retirement planning may be more suited to workers who are nearing retirement than they will be for those just entering the workforce.

Conversely, benefits that enhance take home pay, such as voluntary benefit portals, debt consolidation offerings etc may be more popular for employees who are just starting their careers.

By maximising choice, both can be accommodated. This can increase the administrative burden but will pay dividends.

Posts in the this section will concentrate on what is changing in the market. We also focus on how organisations can leverage employee benefits to improve retention and engagement in their workforce.

Mind the benefits gap (2 min read)

According to the attached article, two thirds of SME bosses believe that they face a benefits gap in comparison to larger employers. The research, carried out by Opinium in March 2018 among 508 decision-makers at organisations employing between 50 and 299 staff, found that 69% of senior managers believe they have a duty to provide benefits beyond pensions. …

Mind the benefits gap (2 min read) Read More »

Employee Benefits Management @ Cornerstone Resources HR

Childcare vouchers are dead. Long live tax free childcare?

Intensive lobbying from interested parties has failed to change the Government’s mind on removing childcare vouchers. From 4th October 2018, the current childcare voucher scheme will be closed to new entrants and the only option on the table (for those who are eligible) is tax free childcare. We find it disappointing that the Government has …

Childcare vouchers are dead. Long live tax free childcare? Read More »

Employee Benefits - Cornerstone Resources

Real salary increases in the UK are flat. What does this mean for your business?

So we read again that real pay increases have flatlined. This means that basically the same as it has for the last decade, no increase in real take home spending power for the average employee. The attached article confirms that median pay awards are still rooted at 2.5%, the same rate as the consumer price …

Real salary increases in the UK are flat. What does this mean for your business? Read More »