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. 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?
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 move 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 to companies that they 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 goes 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.
Create an Environment Employees Love
Companies like Google, Facebook and Microsoft do a huge amount to create an environment where their 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, give us a call or start a live chat and we’ll give you a free quote. We’ll even give you a free demo of our innovative Salary Extras platform that houses all our employee benefit schemes!
You can find all our contact details on our Contact Us page.