Why SMEs should invest in an employee benefits scheme
Many small businesses look at employee benefits schemes at simply an expense that they cannot afford. And with COVID-19 playing havoc with the finances of many businesses across the country, perhaps it is no surprise that a large number of SMEs don’t currently offer an employee benefits scheme - in fact, one-third of employees at UK SMEs do not receive any form of workplace benefits.
Benefits, however, can be a very valuable addition to a small business and what it can offer staff. Here we take a look at why, especially in 2020, SMEs should be investing in more benefits for employees.
Boosting company morale
There have been, in many cases, few reasons to smile for the staff of small businesses in 2020. The COVID-19 pandemic has undoubtedly brought down morale and created a lot of challenges. Now is the ideal to give your team a boost - and introducing a range of new staff benefits can be a great way to do it.
Employees like to feel that they are appreciated for what they are doing - and while many accept that times have been difficult financially for their employers, they will be enormously grateful for any new benefits. Higher morale is not just good for staff, it’s a fantastic thing for the company too.
Engaged staff are more productive
Improving the morale of your team can lead to staff feeling more engaged with the business. When members of staff are engaged with the company they are invested in the work that they are doing and want to succeed not only for their own sake but in order to push for the success of their colleagues and organisation as a whole.
Highly engaged staff are typically far more productive. A recent study revealed that engaged employees were not only 17% more productive - they were actually 21% more profitable for the company.
Hiring and retaining the best staff
Another key reason to consider investing in additional employee benefits is the advantage that it can give your SME in terms of both recruiting and retaining top talent. “Benefits make staff feel appreciated,” says Adam Reeves of Reeves Financial “if employees are made aware of and recognise the value of their benefits package, their confidence in their future and, therefore, the future of the company is raised”.
If your SME offers benefits that a rival company doesn’t, it makes for a more enjoyable and appreciated workplace.
Important for growth
If you are interested in growing your business, employee benefits are essential. This is because they are a big part of what makes employees consider you to be a serious company - the kind of organisation that they can commit to for the long-term.
And, as mentioned above, the positive in terms of productivity, staff retention and staff morale are all crucial for SMEs that are interested in growing. If you are going to become a bigger company then you need to act like one.
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