Starting a new business venture in the UK is an exciting new chapter, but there is a lot to think about. One of the things that could present a challenge is attracting the right people to work for and run your business.
As employee benefits experts, we can help you to understand exactly what perks you could offer to attract and retain the best talent to your new UK business.
So, in this article, learn:
- The five employee benefits you can offer to your team when setting up a UK-based business
- The most sought-after employee benefits
- Your legal responsibilities as an employer, and how can you go above and beyond to ensure the very best talent wants to work for you.
5 employee benefits for attracting the right employees to your UK-based business.
- Pensions provision
It is a legal requirement for employers to offer a workplace pension to their employees. You must “auto-enrol” any employees who are:
- Classed as a “worker” or employee
- Aged between 22 and State Pension Age (currently 66, rising to 67 between 2026 and 2028)
- Earning £10,000 or more a year
- Usually based in the UK.
If you have employees that do not meet these criteria, you do not need to auto-enrol them, but they do need to be able to opt-in to the pension scheme.
In the 2023/24 tax year, you must pay a minimum of 3% of your employee’s pre-tax salary into their workplace pension, and the employee must contribute at least 5% of their salary (including their tax relief).
In some schemes, you can pay in more than the minimum requirement, and this can be a helpful way to enable your workforce to save for their future. It can also be a useful method to attract and retain talent.
- Death in service cover
Death in service cover means that if an employee dies while they are on the payroll at your company, their beneficiaries will receive a tax-free lump sum. Their death does not need to be work-related, and they do not need to have been at work when they passed away to be eligible.
The value of the payout will differ between organisations, but it is usually a multiple of the employee’s salary – typically two to four times. Sometimes the lump sum is paid directly to the employee’s beneficiaries, and sometimes it is paid into a trust.
Death in service cover is not a legal requirement. Often, though, it can be an attractive addition to the benefits package that could appeal to potential candidates.
- Private medical cover
Since health and wellbeing is often an important factor in employee productivity, many organisations have started to offer private health insurance or healthcare cashback plans.
According to a report by Forbes Advisor, 67% of employees considered employer-covered healthcare to be the most important benefit that an employer can offer.
Offering private health insurance for your employees can benefit your business in many ways.
- Employees can usually access treatment and support more quickly, potentially requiring less time off sick to recover.
- Some policies offer cover for family members and dependants.
- Employees may be able to access doctor appointments outside of working hours, reducing the amount of time they need to take off work.
Many providers offer tiered systems so that you can select the level of cover that is most suitable for your business.
- Income protection
Income protection is a type of insurance that will pay the employee a regular income if they find themselves unable to work due to long-term illness or injury. The payout is usually proportionate to the employee’s usual salary and can begin as soon as the employee is unable to work or after a deferred period.
As an employer, you can access group income protection, meaning that you can insure all your employees under one policy. Often, group policies offer rehabilitation support and complementary wellbeing services like counselling to help employees return to work sooner or avoid needing time off work at all.
The business benefits of offering this type of cover to your employees include:
- Attract and retain more high-quality staff by demonstrating your commitment to employee wellbeing
- Could help you to cover the cost of hiring temporary staff while your employee is unable to work
- Cover your National Insurance contributions for the employee during their leave of absence
- The cost of the premiums you pay for cover are an allowable business expense, so it could help you to reduce your Corporation Tax bill.
In the event that you need to claim on the policy, the payout will be sent to you, and you must then distribute the amount to your employee.
- Other benefits
There are lots of other benefits that can attract and retain high-quality staff for your business. The most suitable additions to your own benefits package will depend on your company values, the type of staff you wish to attract, and the company culture you wish to cultivate.
For example, benefits such as weekly free lunches, team building days, and additional devices such as smartphones or tablets for employees to work on could encourage a more collaborative culture. By offering subsidised gym memberships, a bike-to-work scheme, and discounted tech such as smartwatches, you could foster an energetic culture that prioritises health and fitness.
When you take the time to understand the values and culture that are most important to your business, you can build a benefits package that attracts the right people to run your new venture. This gives you the greatest chance of building a happy workforce and achieving business success.
Get in touch.
Of course, there are many more than just five employee benefits. This article is just the tip of the iceberg when it comes to the help and advice that we can offer to UK business owners.
If you would like to learn more about how RPG Financial Services can support you in your new venture, we would love to chat.
If you would like to arrange an initial meeting, with no obligation, please contact us at firstname.lastname@example.org or call 0203 697 7147 to speak to us. Or you can visit our web chat in the bottom right corner which is manned during office hours and you can leave a message out of hours.
The RPGCC team are always just a click or call away.