5 types of employee benefits to implement in your organisation

BizBritain By BizBritain
over 2 years ago read
5 types of employee benefits to implement in your organisation

These days, you can’t expect your company to attract job applicants simply as a result of offering a high salary. These days, when a jobseeker looks at the listing for any position they are considering, they could easily be inclined to look at the benefits package rather than just the salary. 

Some benefits, you should offer simply to stay competitive with other companies. However, certain benefits are actually legally required. Here are just some benefits you ought to implement... 

Contribution to employee’s retirement fund

The employment agency Reed cites this employer-provided contribution as a ‘core benefit’ – in other words, one to which your employees would be legally entitled anyway. The other two core benefits you need to heed are income protection and holiday allowance. 

As an employer, you are required to help in both setting up and contributing to funding the employee’s retirement – for example, by providing a workplace pension. As CIPD reports, pensions like these have become widespread.  

Income protection 

Otherwise known as IP, this pays an ongoing monthly income to an employee if they are rendered physically incapable of working. As the Startups website explains, you should anticipate paying “somewhere between 1.25% and 1.5% of payroll” on this benefit. 

You should also keep in mind that, when paying IP, you are legally obliged to continue paying for all of the employee’s other benefits as well as National Insurance (NI) and any pension contributions to which this worker would be entitled in ‘normal’ times. 

Holiday allowance 

Each employee in your team is legally permitted to take at least 28 days’ paid holiday leave a year. This allowance can include bank holidays; however, you probably don’t want to be too stingy with the amount of holiday allowance you make available. 

That’s because, in practice, many businesses actually offer more than the minimum holiday allowance legally required – as, in doing so, they can help to attract better candidates for the job vacancies they advertise. 

Life insurance

Your employees could have many financial dependents, like kids and maybe even elderly loved ones who need special care and attention. So, if any employee under your wing suddenly and unexpectedly passed away, the financial repercussions for their family could be immense. 

Therefore, many of your employees could easily appreciate you offering them life insurance – which, though not a core benefit, some workers could deem as important as one.   

To help ease some of the financial burden you might otherwise shoulder by offering life insurance, you could offer it as group life insurance – as this would offload part of the risk to a third party. 

Critical illness cover 

This would pay a single tax-free lump sum to an employee if they suffer a permanent disability or a serious illness – though you should look closely at each critical illness cover scheme you consider, as you might want to know exactly which conditions like these it covers.  

Critical illness cover, too, is available as a group policy – one of several employee benefits YuLife could help you to provide for your workers.