Many companies face the same problem. They’re restricted by budget and they can’t afford to hand out pay rises. Companies are always looking to cut costs and save money in the long-term, often in the face of financial uncertainty and sometimes companies find themselves under pressure to increase pay.
Those companies then start to look for alternatives. But what is the alternative? To introduce rewarding and engaging employee benefits.
So, how can employee benefits be a viable alternative to pay increases? And what can employee benefits statistics tell us?
We’ve also added in a few more employee benefits statistics that show how employees’ needs and priorities have changed in recent times.
Employee benefits increase loyalty
Employee benefits statistics show that benefits increase loyalty.
- 75% of employees reported they’re more likely to stay with their employer because of their benefit program (Willis Towers Watson)
- 80% of employees would choose additional benefits over a pay raise (Harvard Business Review)
- 69% of employees report that they might choose one job over another if it offered better benefits (One Medical).
Employees who have and use a rewarding and engaging employee benefits package are less likely to switch employer because they might not get the same benefits at another company.
Furthermore, employees themselves can make savings through their employee benefits package that they might not get anywhere else. For example, through shopping cards employees can get discounts on their weekly shop.
Employee benefits can come in all forms, ranging from health and wellbeing benefits to childcare benefits to discounts on the latest tech. There’s a huge range of employee benefit schemes available that companies can roll out to their employees.
Increasing loyalty reduces cost
- The Society For HRM found that the average cost-per-hire is £3,223
- They also found that the average annual turnover rate is 19%.
For a company with 100 employees, that works out at a cost of £61,237 a year just to replace employees that have left the business.
If you were to increase loyalty by 10%, you’d make a saving of over £30,000 for the year!
Furthermore, without an alternative to pay increases, a company could find that their annual turnover rate is higher than the average of 19%, and the higher it gets the costlier it becomes.
These statistics also don’t consider the time, effort and cost involved in training new employees. Introducing employee benefits can help increase loyalty and reduce staff turnover, saving your company thousands a year.
Employee benefits statistics show the effects of COVID-19
- 42% of companies have made, or are planning to make, significant changes to their benefit programmes as a result of the COVID-19 pandemic (Willis Towers Watson, 2020)
- 92% of employers say mental health has become an increased focus area since the impact of COVID-19 (AON, 2021)
- 46% have increased their organisation’s health and wellbeing focus since COVID-19 (Employee Benefits, 2020)
- Between March and September 2020, there was an increase of 60% new Bike to Work scheme joiners compared to the same period in 2019 (Cycle to Work Alliance, 2021).
In recent times there’s been a huge shift in employees’ priorities which has reflected in changes in the employee benefits space.
Businesses now appear more focused on health and wellbeing and how they can help employees manage their wellbeing with employee benefits.
The Bike to Work scheme has also been hugely popular with employers and employees.
The big challenge now for employers will be to make their employee benefits provision as flexible as possible to help meet the new needs of employees and to help personalise the employee benefits experience.
This is where flexible benefits technology can come in to help employees make the most from their benefits.
Creating an environment employees love
Companies like Google, Facebook and Microsoft prioritise creating an environment where employees feel appreciated and happy in their role.
Not all companies have the resources like they do to improve employee satisfaction, however companies of all sizes can introduce employee benefits which go a long way to not only increasing loyalty but creating a working environment that employees love.
A popular, happy working environment aided by a comprehensive employee benefits offering will not only improve retention but will make your company a more attractive proposition for talented new recruits.
In other words, imagine if you could offer a working environment that employees love, as well as a childcare scheme, bike to work scheme, shopping discounts at thousands of retailers and much, much more.
How much do employee benefits cost?
So, how much do employee benefits cost? This can vary from company to company. It’s certainly much cheaper than handing out pay rises and is much more effective at increasing loyalty and employee satisfaction.
If you’d like to find out how much employee benefits would cost your business, get in touch today and we’ll walk you through the process.