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The UK’s official unemployment rate is at the lowest it has been in over forty years, according to the Office of National Statistics. In fact, it is at 3.8%, and hasn’t been this low since the autumn of 1974. With an increasing number of available job opportunities, competition is ever growing amongst employers vying for the right staff to help their business grow. Getting the right team together and reducing staff turnover relies to an increasing extent on putting the right benefits package together that will attract and retain employees. Our Plutus Wealth team of independent financial advisers can help you do just that – read on to find out what our top 6 recommended benefits are or visit our website at www.plutuswealth.com for more information.
The types of benefits that you offer will vary depending on your business and industry. Amongst those are ones that are legal requirements – such as pension schemes – and others that are optional – such as company cars. What you choose to offer will depend on your line of work and how important it is for you to attract and retain the right staff. You may therefore want to have some flexibility for staff to pick and choose what is right for them.
As an employer, there will be certain benefits that will be taxed. It is your responsibility to withhold that tax from those employees on a PAYE (pay as you earn) scheme. It is also down to your staff to report any changes to HMRC where their circumstances change.
On a day-to-day basis we work with hundreds of companies who have one thing in common – they want to grow their business. They do this by holding on to the teams they have spent a lot of time and effort to put together and train. And they attract and keep them on by getting the mix of benefits right.
The benefits that we have found to be the most valuable include:
Still a big draw and very popular in certain industries, cash and non-cash bonuses are taxed and must be reported. However, they can be an incentive to not only retain staff, but to also encourage team working and business success.
Offering company cars that employees can use for commuting or personal use can be a great incentive for those who live in areas with reduced public transport. The amount of tax paid by employees will depend on a number of value-based factors, including CO2 emissions, part- or full-time use, and contributions towards its cost. Fuel is taxed separately, and you and your employees will have to update HMRC on this too. If you offer a car allowance this is an additional payment to staff that allows them to pay for a car to travel to work. This does need to be reported to HMRC by employees as it will have National Insurance and tax implications.
Part of a salary sacrifice option, it offers staff the possibility of a healthier lifestyle without a big one-off payment that can otherwise be prohibitive.
Whether it is an interest-free travel loan to help with annual season tickets or a low-interest loan for personal use, it will attract a tax if it is worth more than £10,000. The amount of tax paid is the difference between the interest charged by the employer and the Bank of England base rate.
This is a taxed benefit but one that both employers and employees find invaluable. It allows staff to get medical or dental care quickly and effectively, enabling them to return to work sooner. It also means they don’t have to worry about long waiting lists and extended time off work to see a doctor or to recuperate.
A legal requirement now, it is one where the employer contributions can make a difference to an employee. While final salary pensions are a thing of the past, the better schemes are those that offer a sliding scale of contributions and allow employees to use them in the way that best works for them.
There are plenty of other benefits that companies can and do offer. To find the right mix for your company and team simply get in touch with our Plutus Wealth team of qualified independent financial advisers. You can find us on 020 7871 5200 or at firstname.lastname@example.org when you need us. We will help you put together the right benefits package for your company that will attract and retain the best possible team to grow your business.