How the right employee benefits can attract and retain talent

Many business leaders will break out in hives at the merest mention of, whisper it, the ‘Great Resignation’.

In 2021, analysis by Deutsche Bank suggested that the UK had the highest rates of people leaving their jobs since records began. It turns out this was a global phenomenon. According to a survey by Amazon, 47 million people quit their jobs in the USA last year, too.

Data suggests that trend could be set to continue. A 2021 Microsoft Work Trend Index claimed that 41% of the global workforce were thinking of leaving their jobs within 12 months, and a 2022 study by Gartner found that as many as 70% of technology workers could be looking to change their jobs.

Even before the pandemic, there were signs of a paradigm shift in the way employees see themselves and their position within an organisation. The pandemic only served to speed up this process.

Gone are the days when employees unquestioningly undertook the 6.30am daily commute to work for companies that placed greater value on their bottom line than the health and happiness of their staff. Employees are now demanding hybrid working environments, flexible working hours, and evidence (not just lip-service) that their employer cares about their wellbeing

The management consulting giant, McKinsey & Company, says employees are looking for a renewed sense of purpose in their work. They want meaningful social and interpersonal connections with their colleagues and managers, not just work-focused relationships.

That means employers need to take a more ‘human-centric’ approach. To achieve this, employers need to review their organisation’s internal culture to retain good staff and avoid the upheaval and costs of finding new employees. They should also encourage an excellent work-life balance within a supportive and nurturing environment.

If they don’t, they may find themselves caught up in the turmoil of ‘The Great Resignation’.

Incorporating wellbeing initiatives within your own employee benefits package can help you send a powerful and positive message – and benefit both employee and employer. Initiatives that encourage healthy living, fitness, and good nutrition help improve mental and physical health, and the overall energy levels of those working from home, and in the office.

But as well as physical wellbeing, a good benefits package should also support your employees’ financial wellbeing. Financial stresses can directly impact an employee’s state of mind and, ultimately, their mental health and ability to do their job. And, let’s face it, not everyone is good at managing their money or seeking advice.

Workplace Pension

As an employer, you’re legally required to provide a workplace pension and contribute a minimum of 3% of your employee’s salary towards it (although many employers are already far more generous than that).

Financial Protection

Long-term financial security and peace of mind are valuable for most people, especially those with young families. Life insurance, death-in-service, critical illness cover and income protection policies can all be incorporated into an employee benefits package, offering reassurance that financial commitments will be covered should the worst happen.

Health Insurance

Helping your employees maintain their health, and gain rapid treatment if they need it, offers obvious benefits for employer and employee. It can also make you a more attractive proposition to prospective candidates. A survey by Drewberry’s suggested that over 35% of people might think twice about joining a company that didn’t offer health insurance as part of its employee benefits package.

Personal Financial Planning

A 2022 report from Wagestream found that 7 in 10 people are hiding financially-driven mental health concerns from their employer. And, according to a report by the Financial Conduct Authority (FCA), 57% of employees want access to a financial planner in the workplace. Providing access to an adviser who can offer advice tailored to each employee’s individual and specific requirements is an effective way to proactively support the financial and mental wellbeing of your staff.

Your employee benefits package should be flexible enough to allow each employee to tailor a package suited to them. A 25-year old’s priorities will be different to someone in their 40s with a family, so it’s important not to be too prescriptive.

Consider allowing each person to create their own bespoke employee benefits package, with the ability to review and amend on an annual basis as their priorities change.

It’s a win-win. You’ll equip your people with the knowledge to successfully manage their own finances, reduce anxiety, improve wellbeing, and make for a happier and highly engaged team.

Amber River can help you shape your business’s financial employee benefits package to retain existing employees and give you the competitive edge when it comes to attracting new talent.