In a time of financial constraints and where companies are reducing budget spend, it is even more important to retain and attract the best employees to drive profitability.
Along with salary and a workplace pension, employers have tended to look towards tradition methods of employee engagement by offering a range of ‘employee benefits’ such as, life cover (death-in-service), income protection plans, critical illness cover and private medical insurance. However, while these are undoubtedly generous benefits, they can have a significant impact on the employers’ annual costs of running their business.
It is therefore important that an employer seeks the advice of an IFA that can research the whole of the market not just for better value employee benefits, but also for the new generation of ‘voluntary benefits’ which have come into play. Voluntary benefits provide employees with a wide range of benefits including household savings at over 7,500 retailers and important advice on physical, emotional and financial wellbeing. Designed to save money and address the work life balance these platforms provides employers with an inexpensive solution to help and motivate their employees.
Based on the Office of National Statistics the average UK salary now stands at £27,000. Voluntary benefits can boost the available income for an employee by over £1,000 equating to a pay rise of nearly 5% before tax and national insurance. As pressure on wages increase and the job market becomes more buoyant, it is becoming increasingly important that your key assets, your employees, are kept engaged and loyal. Therefore, implementing a voluntary employee platform can provide a significant boost to the income of your employees and so much more. Combining a modest pay increase with these benefits will provide the pay raise your employees expect and deserve without breaking the bank.
The initiative will provide employees of smaller organisations with benefits commonly enjoyed by larger UK enterprises. The key to engaging in this area is to work with an IFA that has detailed knowledge of this sector and understands the pressures that businesses are under to keep their employees engaged and at the same time, manage their costs.
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Craig T Gibson, Managing Director
AGL Wealth Management Ltd
0141 348 7710