An Introduction to Employee Benefits
Simply put, employment benefits are additional forms of compensation offered by employers on top of a normal salary. These become more and more important as companies compete globally for the best talent, making these benefits essential to most organisations’ reward strategy.
As online benefits company Thomsons* puts it, “When designed, implemented and managed correctly, employee benefits enable you to support your employees while engaging them in your company’s values. Your employee benefits package provides employees with increased economic security and helps them feel individually valued by your company.”
The term employee benefits is a broad one and encompasses everything from financial benefits (for example, workplace pension or mortgage advice) to wellbeing and health benefits (for example, gym memberships or medical insurance). These can be divided into core and optional benefits; core benefits are provided automatically whereas optional benefits can be opted into and out of.
Financial employee benefits
- Workplace pension
A workplace pension usually entails an employee putting aside a portion of their salary and employers also making a contribution. In the UK, automatic enrolment legislation requires employers to automatically enrol all eligible employees into a company pension scheme.
- Financial planning benefits
These can include employers providing mortgage advice, financial education, and retirement planning to employees.
Health and wellbeing benefits
- Lifestyle benefits
These are often geared towards health and productivity and can include gym membership discounts, free fruit, health education and cycle to work schemes. An employer may also provide preventative health benefits, such as health screenings and occupational health insurance.
- Private health insurance
This is mostly self–explanatory and is there to ensure that employees have access to medical treatment should they become unwell and, hopefully, return to work happy and healthy.
Core benefits are legally required in the UK and consist of a workplace pension, income protection and holiday allowance, so always make sure these are being offered in your job. If you want to know more about pensions and your options there, it is wise to speak to a Financial Adviser.
If you would like to speak to an adviser about pensions, please get in touch by calling 01992 500261 or emailing us at firstname.lastname@example.org.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
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gpfm are an independent financial planning company dedicated to the provision of personal, professional and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.