For many, a competitive salary is no longer enough. From flexible hours and healthcare packages to discounts and assistance programmes, modern employees expect more from their employer.

But should you introduce more staff benefits and what are the most valued perks at work?

Employee perks and benefits are simply a way of rewarding staff outside of their monthly pay packet. They go much further than a basic salary and traditional workplace incentives such as paid annual leave, sick pay, bonuses and pensions.

Instead, they’re designed to support staff wellbeing and morale, making the business a more caring and attractive place to work. Healthier, happier employees could ultimately drive productivity, reduce absences and boost your public image. 

In the battle for talent, corporate perks have expanded significantly in recent years. While they vary between employers, some common examples include:

• Private health insurance and dental plans
• Free or discounted gym memberships
• Flexible and hybrid working
• Training courses and development opportunities
• Company cars and phones
• Unlimited holiday allowances
• Free social events, like Christmas or summer parties
• Wellness programmes and apps
• Free or discounted food and drink

Why offer employee perks?

The British workforce has had plenty to deal with since 2020, with Covid-19 lockdowns and a cost-of-living squeeze taking their toll. In response, a tailored package of benefits could ease the strain on employees.

Whether it’s a cycle-to-work scheme or access to free massages, staff benefits can show just how much you value healthy, happy workers. They could help foster a positive environment, creating engaged employees who are keen to buy into your vision.

Yet the advantages of perks at work can stretch even further, helping you to attract the brightest talent. Building a comprehensive benefits package into your compensation offer might just give you an edge over rivals when recruiting for key roles. What’s more, retaining existing talent may offset the costs of perks in the long run.

There are many potential benefits of employee perks. They include:

Greater satisfaction and retention

High wages and generous bonuses may be enough to motivate some workers. But they don’t guarantee passion or loyalty. 

The right combination of group benefits shows you’re willing to go above and beyond when it comes to employee welfare. This can raise job satisfaction levels, motivate staff and encourage them to stay with you for the long haul. It’s something to consider if you’re rapidly shedding talent and struggling to maintain a stable team. 

With employees averaging 7.8 days of absence in 2023, according to the CIPD and Simplyhealth, many businesses face regular gaps in their workforce. Corporate perks might have a role to play in reducing stress and illness. The likes of flexible hours and medical cover may also enhance productivity by helping staff focus and reducing external distractions.

Positive organisational culture

Shiny logos and smooth ad campaigns only tell one story about a business. Scratch beneath the surface and you’ll often find signs of discontent. In fact, employment site Totaljobs has warned of a growing tide of ‘zombie’ workers, who feel bored and unfulfilled in their roles.

A negative company culture might cause lasting damage to your brand. On the one hand, it opens the door to low morale and even mental health issues. On the other, a lack of commitment may threaten client relationships.

Thankfully, perks like free training courses, mentoring sessions and discounted conference tickets often rebuild motivation. Meanwhile, cut-price canteen deals and free coffees could quickly bring workers together, driving a more positive and social organisational culture.

Improved work-life balance

The days of rigid routines and strict attendance rules are fast disappearing across many sectors. Modern workers expect greater openness and flexibility. A carefully curated staff benefits package could promote a better work-life balance. From remote working to Christmas office closures, different perks can reveal what really matters to your firm.

With new employee benefits appearing each year, it may be tempting to offer as many as possible. But what works for one company might not fit so well in another. Meanwhile, a lengthy list of perks could simply lead to a scattergun approach, confusing employees and pushing up costs.

With all that in mind, here are the main things to consider before introducing perks to your business:

Identify your unique business needs

Your size, sector and identity should all influence your group’s employee benefits package. Perks need to be targeted, logical and genuinely helpful – otherwise, staff will simply ignore them. 

For example, making a big commitment to home-working won’t be much use if your employees spend all day in the field, moving between different sites. Likewise, discounted gym memberships may struggle to get off the ground without adequate facilities nearby.

You can avoid a haphazard approach by tailoring employee benefits to your unique business circumstances.

Get creative

While corporate perks should be targeted and relevant, that doesn’t stop you from showing off your creative side.

Thinking outside the box can increase employee satisfaction and needn’t cost too much. Here are some examples to get your creative juices flowing:

• Recognition programmes. Encourage staff to award points to their colleagues for particularly strong work. These could then be traded for rewards such as restaurant or retail vouchers.
• Charity days. Give employees the chance to support a worthy cause for the day. This could involve the likes of conservation or a fundraising challenge.
• Meditation rooms. Set up a safe space where staff can switch off for 10 minutes and escape the hustle and bustle of office life.
• Early Friday finishes. Giving people the final few hours of the working week off may help to focus minds.
• Fresh fruit baskets. Leaving baskets of fruit around your workspace might encourage healthy eating – and save workers a few pounds on snacks each week.

Listen to your employees

Regular anonymous surveys and feedback forms will offer a true snapshot of what employees are looking for and how existing perks are performing.

Don’t be afraid to adjust or even remove certain perks if people don’t enjoy them. Polls can gather real-world opinions and help you avoid guesswork.

Work within your budget

Financial constraints are another key factor when putting a benefits package together.

Some 26% of UK employers surveyed by the software platform Boundless say they budget between £101 and £150 a month for each employee’s benefits. At the other end of the scale, 23% allocate more than £201.

While many perks at work cost money, this doesn’t have to be the case. You could consider non-monetary benefits to ease expenses and bring people together. Think monthly movie nights!

Whatever you decide, it’s vital to keep your budget front of mind. Flashy group benefits may help to attract talent, but they could quickly eat into your profits too.

In an ever-changing business world, employee benefits are evolving too. Talent shortages, hybrid working, and higher staff expectations are forcing firms to think strategically. While new tools and tech can manage and evaluate perks with greater accuracy.

Remote working perks

The Covid-19 pandemic uprooted traditional ways of working. Thousands of staff made the switch to remote working overnight, as offices closed and city centres emptied. Although memories of lockdowns are starting to fade, home working remains an expectation for many Britons.

In May 2023, 39% of respondents to a Statista survey said they’d worked from home at some stage during the past seven days. And many staff are now entirely remote.

For some people, home working offers a better work-life balance. For others, it provides the chance to avoid a tiring commute each day. Whatever the motivation, scores of employers have responded positively to hybrid working arrangements. This perk means staff are only expected to spend part of the week in the office.

Others are going a step further by offering specific perks to their remote staff. Online training courses, virtual social events and treats in the post could all ensure people stay connected and involved. 

Technology-driven perks

A range of employee benefits platforms have emerged in recent years, to personalise and evaluate perks more efficiently. Using hard data, they can help businesses to streamline, manage and promote different benefits.

You can build a variety of tools and features into these platforms, including:

• Easy access to pension schemes
• Deals and discounts
• Recognition schemes
• Employee assistance programmes
• Wellbeing support
• Surveys and feedback forms

Ultimately, these platforms can make it simpler for people to access staff benefits, while reducing admin time for human resources teams.

Offering perks at work can help to keep your staff on-side and build a positive company culture. But it’s just one part of your wider business journey. 

NatWest delivers a range of products and insights to assist you at each step. For example, thousands of businesses trust Mentor to help manage their employment law, HR, health & safety, and environmental issues. Some Mentor services incur a cost. 

For more information about everyday business banking, give us a call on 0345 711 4477. We’re available 24/7 for basic enquiries.

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