Why Invest in Employee Benefits?

With companies increasingly recognising that their success will only be achieved their investment in employees, a rounded and professional compensation and benefit strategy is required. The desire is to build a strong employer brand and strong values will be reinforced through the development of a rounded employee benefit programme.

With the introduction of Stakeholder pensions in 2001, companies are now required to provide their employees with access to stakeholder pensions. Although not required, at this stage, to make a contribution there is pressure on businesses to move in this direction.

Business start-ups will typically only offer a base salary, plus some bonus element and possibly a share option plan. The ‘pull’ of share option plans has almost lost all credibility and potential employees are pushing for a more ‘balanced’ portfolio of benefits. Where international businesses need to attract overseas staff a fuller benefit package is a pre-requisite.

Employee Benefits add to the attractiveness of the business in the eyes of potential recruits, as well as acting as a strong retention tool. They add to the company’s overall values and culture and are a source of competitive advantage.