Written by Andrea Frith

Investment in employee benefits can be costly and getting it wrong can lead to significant financial losses. The pandemic has changed the way we work and how we perceive the work environment and in turn, the benefits that organisations offer.

The working from home culture has allowed people time to reflect and review what is important to them and more and more focus is being placed on wellbeing.

The benefits on offer will play an important part in employee retention and this will be key in 2022 in a candidate-short market. A large majority of the larger organisations have begun to overhaul their benefits packages. The introduction of various platforms allowing employees access and flexibility to benefits is becoming more common. This allows less red – tape and gives an opportunity for a bespoke offering.

Various surveys conducted in the later part of 2021 indicated that the following were at the top of the list:

• Increased holiday allowance – 20 days plus 8 days bank holiday is not a benefit but a legal requirement
• Recognition and acknowledgement of work achieved – not just monetary
• Lifestyle type discounts

Benefits on offer do not need to just be monetary and more and more organisations are offering a vast range of support to employees and their families and additional wellbeing events. When reviewing benefits to enhance candidate attraction and retention it is worth considering the following:

Social Benefits - operating days off for charitable work, monthly social events, days out, team breakfasts

Mental support – offering counselling sessions, mental health first aid training, wellbeing days, employee assistance programmes

Financial – enhanced bonus schemes for all levels of employees, these should not necessarily be dependent on company performance but are increasingly being based on values and behaviours, enhanced bonus schemes, retail and entertainment discounts, home office set up support for employees working from home, subsidised commuter costs, salary sacrifice for cars, bikes, and tech devices.

Flexibility – Flexibility is being offered around where to work and giving the ability to self-manage own hours. Recent trends are to allow a 4-day working week, effectively encouraging employees to spread their hours over 4 days, job shares, unlimited holiday, summer hours, early finish on a Friday.

Overall investment in employee benefits will always be reviewed and like anything, return on investment will need to be measured. The overall HR budget is likely to be focused on the above but should always include investment in Training and Development and Diversity and Inclusion initiatives. All are equally important, but the key is to ensure they are reviewed and measured regularly to ensure they are meeting the employee’s needs. Talent is short and retention is an investment.

For further information on current recruitment trends, please do not hesitate to contact andrea.frith@pertemps.co.uk