Ten flexible, affordable benefits to boost retention and productivity in your SME

Spot the difference - benefits, flexible benefits and perks

First, a quick look at the difference between the types of benefits out there.

Benefits are often included in an employment contract and are rarely subject to change. They offer non-salary compensation, such as parental leave, holiday allowance, pension contributions and sick pay.

A flexible benefits scheme allows staff to pick and choose the benefits that suit them and their circumstances, and might include flexible working hours, childcare vouchers, gym membership and private health plans.

Perks are ‘nice to have’ additions to other compensations and might include simple but valued offerings like free biscuits, pets at work or volunteer days.

Here, we’re going to be talking mostly about flexible benefits and perks.

How can offering flexible benefits and perks help your business?

When purse strings are tight, it can be difficult to attract new talent, stand out from the competition and retain your current staffing levels, especially if your competitors are able to offer higher salaries.

A glance at the UK employment turnover rates for 2022 shows just how big a problem retention is:

• Manufacturing 39%
• Construction 53%
• Transport 54%

A survey found that 39% of jobseekers left their current role due to a lack of job satisfaction, 33% were looking to improve work/life balance and 25% were seeking career development and training opportunities. Perks and flexible benefits can offer employees all of these things and more, and at no great cost to the business, in turn reducing turnover rates and making your company a more appealing place to work.

Here are some examples of what other companies have introduced to their flexible benefits package:

• Hyde social housing group launched a new wellbeing initiative and saw a 63% decrease in stress levels at work.
  
  
• Linklater, a London-based law firm, introduced a flexible bank holiday scheme whereby employees can swap any of the UK bank holidays for another day off throughout the year depending on their beliefs and circumstances.
  
  
• Pybar Mining Services refreshed their rewards, recognition and communication offering to engage offline workers.
  
  
• Watford Community Housing increased employee satisfaction by 20 points when they increased reward and recognition transparency at work.
  
  

10 flexible benefits and perks that could help increase productivity and staff recruitment and retention in your company

1. In-house/on-site training

Training and development opportunities need not be expensive investments to third-party providers. Consider what talent and experience you have in-house and offer peer-to-peer training to fill skills gaps and show your staff how they can grow within your business.

2. Wellbeing days

Offering your staff wellbeing days, taking designated time off to focus on their mental and physical health, means that they will return to work feeling rested and refreshed, ready to fully engage in their work again.

3. Flexible working

A reported 70% of jobseekers surveyed by XpertHR prioritised flexible working arrangements over all else when comparing company benefits packages. And while fully flexible working might not be possible in your industry, offering a level of flexibility that works for your business will help to draw in candidates and empower current staff to achieve a better work/life balance. Consider adopting flexible start/end times, swing shifts, staggered hours or job sharing.

4. Rewards

Rewarding your staff does not have to be in the form of monetary compensation, although bonuses are a great incentive, especially in times of hardship. Rewards for achievement, effort, innovation, cooperation etc can come in other guises, such as certificates, time in lieu, acknowledgement in meetings, or a trophy (or cake!). Rewarding your staff’s contributions can really help them feel valued and appreciated.

5. Recognition

Recognising your workers’ contributions to the business or personal achievements on social media in the form of a blog or post not only shows your employees that you notice and appreciate them, but reflects a positive, supportive culture to those considering applying for a job at your company.

6. Birthday off

Giving your employees a day off for their birthday is a great way to celebrate and appreciate each individual in your workforce.

7. Free snacks

Offering free fruit, toast or biscuits, for example, even for just one day a week, is a low-cost way of showing you care about your staff’s wellbeing and takes a little pressure off their household budget, which will not go unnoticed.

8. Communal space 

Providing your workers with a welcoming communal space for break times will help staff take meaningful, regular breaks away from desks and machinery, looking after their mental health and wellbeing by offering opportunities to chat with co-workers, and increase productivity by giving them a proper time-out.

9. Discounts

Approaching local gyms, leisure facilities, cinemas etc for group or staff discounts for your workers would cost you nothing while offering a welcome perk to your employees.

10. Socials

Socialising together can build a sense of belonging, strengthen teams and form friendships, all of which help create a more positive working environment, stronger engagement in work tasks and higher productivity.

It’s worth remembering that the benefits your staff might value the most are not necessarily the ones that cost you the earth. And don’t forget to inform and update your staff on the benefits available, especially after reviewing your benefits package and introducing new employees to the company, and to remind long-standing workers of what’s on offer.

If you need help with recruitment, call Key Appointments on 0844 504 4666 or drop us a line at info@key-appointments.co.uk.