The Importance of Employee Benefits in a Post-COVID Working World
The post-COVID world has resulted in employees reassessing their relationship with their employer and what is important to them; alongside salaries and pension contributions there are softer and warmer employee benefits you can extend to your workforce which will bring the employee closer to you and make them feel valued and well-protected.
What Counts as an Employee Benefit?
Employee benefits are extra incentives provided by employers, in addition to a worker’s normal salary or wages, that are designed to help promote employee satisfaction and wellbeing.
Although some benefits are legally required – like pensions and a minimum amount of paid holiday days - others are offered as added perks that are used to attract and retain employees. Every employee is entitled to the core benefits their company offers, no matter how long they’ve worked there and no matter what their level is. However, more senior staff may sometimes have access to a larger benefits package.
Some of the most common perks offered by companies include free food and/or drinks, discounted meals, gym memberships, company cars, free or subsidised travel, an employee referral bonus, free company events, childcare vouchers and flexible working hours. However, certain insurances also make a great perk and can often prove to be a motivating factor in the employee staying with the company for a long time.
What Insurances can you Offer as an Employee Benefit?
There are many insurances that can sweeten the employment package as a whole. Whether it’s healthcare insurance, dental cover or complimentary travel insurance, with such a breadth of choice it’s easy to tailor the perk to suit your employee demographic. Complimentary insurance will also often benefit your employees more in the long run than gym memberships or beer on a Friday – so what covers are a good idea?
Group Life Insurance
Group Life Insurance, often referred to as Death in Service, pays out a lump sum to an employee’s family or next of kin in the event of them dying during the course of their work, or while travelling to and from their office or site. The lump sum is usually based on a multiple of their salary - for example, two, three or four times the contracted yearly salary. This benefit is tax-free provided it is not more than your employee’s available lifetime tax-free allowance.
The terms of Death in Service cover usually dictate, that to receive death in service benefit, the employee must be employed with your organisation at the time of their death. This type of life cover usually runs until normal retirement age, but if they take time out from their career or leave the company for any reason they will no longer be covered.
Personal Accident Insurance
Personal Accident cover pays a pre-determined amount of money in the event of an accident – such as broken limb or loss of sight - but can also pay a weekly benefit during recuperation from an injury. This cover can operate either ‘24/7’ or ‘occupational and commuting time only’ which can indirectly benefit your business as there are typically fewer Employers Liability claims brought against businesses that cover their employees with this particular insurance.
If some of your employees work in a particularly risky environment – i.e. in a manual labour job – then personal accident insurance would make a great benefit. However, personal accident insurance can be useful for just about anyone, whether it’s an employee that’s tripped in the office and fractured a wrist or a delivery driver that’s had some sight loss as the result of an accident.
Healthcare plans are a staple when it comes to employee benefits and can often mean that your employees are back to work quicker due to receiving private healthcare. While the traditional ‘Bupa’ type covers can be quite expensive, there has recently been a spurt of cheaper plans to the market. Not only are they affordable, but they’re generally quicker and easier to set up for you as an employer.
They offer various benefits like access to a GP 24/7, the ability to see specialists for diagnosis/treatment, annual health checks and even the option for adding dental and optical cover. Many also offer a mental health and stress line manned by trained counsellors, which can be built into your Employee Assistance Programme to help employees through difficult times like a family bereavement, problem-debt or difficulties arising from a divorce.
Starting at just £7 per person per month https://www.kibl.co.uk/sectors/equipsme/, this type of cover can really be a deal-clincher with both employee retention and attracting new talent.
Where can I get Insurance as an Employee Benefit?
If you’re interested in learning more about employee benefits, are looking to start offering perks in the form of employee insurances, or just simply want a bit of advice as to where to start, get in touch on email@example.com
Phil Horner, Head of Recruitment Division
01242 808 741