A compelling employee benefits package is essential for attracting and retaining top talent. But which benefits do employees value the most? This guide outlines the ten most highly valued company benefits to help you make informed decisions.
Offering a robust benefits package not only makes your team feel appreciated but also enhances recruitment and retention. Additionally, it can improve employee health and reduce stress levels. A CIPD survey revealed that the primary reason employees sought new jobs was to find better pay and benefits.
A high-quality benefits package doesn’t have to be expensive. Focus on what’s important to your employees and offer a combination of benefits that help them achieve their goals.
Top 10 Employee Benefits in 2024
Unsurprisingly, a market-rate salary and performance bonuses are among the top 15 valued benefits. However, employees, especially Gen X and Millennials, increasingly value benefits that enhance their wellbeing and work-life balance. Gen Z, in particular, looks for employers who prioritize cultural purpose and offer travel and personal wellbeing benefits.
Here are the ten most essential perks to consider offering:
Flexible Working Flexible working has reclaimed its top spot, largely due to many businesses re-evaluating office and home working balance post-COVID-19. Employees have enjoyed the benefits of working from home, such as avoiding stressful commutes, spending less on food and travel, and achieving a better work-life balance. Flexible working arrangements can boost employee engagement and productivity. However, it's important to monitor home working productivity carefully and maintain employer-employee trust.
Flexible working can be offered in various ways:
Flexible Working Hours: Allow employees to adjust their working hours to better suit their personal schedules.
Flexible Working Location: Enable employees to choose where they work, whether from home or the office, with clear communication about any business needs for in-office presence.
Four-Day Work Week: Consider compressing regular hours into four days or reducing hours without cutting salaries, which has been shown to increase productivity and engagement.
Health Insurance Private medical insurance offers employees access to private treatment, covering consultant appointments, surgery, cancer treatment, and routine care. Group health insurance policies can be tailored to fit your needs and budget, providing core coverage and optional extras. Health insurance premiums are a deductible business expense, though employees must pay tax on the benefit.
Pension Contribution Matching With the state pension age increasing, employees value benefits that help them save for retirement. Matching pension contributions shows commitment to your employees' long-term wellbeing and can set you apart from other employers.
Paid Sick Leave Generous sick leave ensures employees feel supported during illness without worrying about financial strain. Group income protection insurance can help cover the cost of wages during long-term absences, while critical illness cover provides additional funds for serious health conditions.
Mental Health and Wellbeing Support Benefits that support mental health are increasingly popular. Options include flexible hours, health insurance with mental health coverage, employee assistance programs, and virtual GP services.
Employee Discount Scheme Discount schemes can help employees save money on essentials and luxuries, reducing financial stress. These can include discounts on cinema tickets, gym memberships, and more.
Extra Holiday Allowance Additional annual leave supports work-life balance and boosts morale and productivity. Consider offering extra holiday days, unlimited paid leave, or special days off, like birthdays or Christmas.
Support for Parents Flexible work options and childcare assistance can attract skilled employees. Consider offering paid parental leave, childcare assistance through salary sacrifice, and critical illness cover that includes family protection.
Death Benefits Death-in-service payments and bereavement leave provide financial security for employees' families and support during difficult times. Group life insurance policies can offer substantial benefits, typically paying a multiple of the employee's salary.
Other Benefits and Perks Additional perks, such as a positive working environment, professional development opportunities, and wellbeing strategies, contribute to employee satisfaction. Offer free food, workplace activities, and training sessions to improve overall wellbeing and career development.
By incorporating these benefits into your employee package, you can create a supportive, engaging, and attractive workplace that appeals to both current and prospective employees.