Retaining the best employees in a climate where budget cuts are all too common can be a tough task for organisations. However, maintaining a high-level of employee engagement is arguably even more important in times of financial constraints.
Top talent helps to drive profitability. Highly engaged top talent is the fuel to the engine of your organisation. Yet, this talent needs fuel of its own and often, take-home salary and a pension just aren’t enough. In this article, we’re looking at the challenges faced by SMEs in rewarding key employees and how we can help ease the strain.
When many of us think of workplace benefits, we often veer down the ‘traditional’ route of life cover, private medical insurance and company cars. Critical illness cover and income protection plans are further stalwarts of the traditional benefit plan. Whilst these benefits are undoubtedly enticing and can boost employee engagement, they are often extremely costly to the organisation. Such benefits add significant value to the overall running costs of the firm and for this reason, many firms, particularly SMEs find themselves caught in a somewhat Catch 22 scenario.
Implementing a Rewards Solution
As the labour market has evolved, so too has employee rewarding. Employers now have access to a whole host of ways to add value to the roles of their staff. For this reason, it’s always advisable that an employer seeks the advice of an IFA before implementing a new way of remuneration. This way, you can ensure that the solution which you arrive at has been thoroughly researched against the whole of market solutions.
Aside from the costly rewards detailed above, voluntary reward schemes have emerged. These seek to tailor benefits to the employee in the working climate experienced today. Benefits such as household savings at some of the country’s top retailers and advice on physical, emotional and financial wellbeing are cornerstones of voluntary rewards schemes. They help to tackle very real and very common problems faced by employees today, such as the desire to save money and enjoy a work/life balance.
Furthermore, they also provide a very cost-effective option for employers. Based on an average salary of £26,468, as compiled by the ONS, voluntary benefits can provide an almost 5% pay rise on gross wage. Coupled with a modest pay increase, voluntary benefits can reinvigorate the workforce whilst keeping costs down.
Here at AGL Wealth, we have developed our own form of voluntary rewards, allowing organisations to boost motivation and employee engagement in a very real way, at a cost which doesn’t overwhelm. We have access to savings at over 7,500 retailers UK wide, offering instant digital vouchers and reloadable shopping cards for over 70 high street brands, with cashback deals of up to 15%. Over 4,900 discounts for local retailers, with online discounts for over 2,000 retailers make for a compelling package for employees.