Research from Personal Group plc, a leading employee services business, reveals that an employee earning the UK average salary of £27,600 could see
Research from Personal Group plc, a leading employee services business, reveals that an employee earning the UK average salary of £27,600 could see an equivalent of a 13% pay rise if they were to realise some of the employee benefits most relevant to them. In turn, their employer can look to save more than £125,000 a year through reduced absence, improved retention, lower administration costs and savings in VAT and National Insurance. This impact is causing businesses to realise just how important benefits are for both the wellbeing of staff and their bottom line.
New research by the ONS in its UK Labour Market: September 2017 report show that total pay for employees in Great Britain fell by 0.4% in real terms between May-July 2016 and May-July 2017. Based on ONS household spending figures 2015/16, Personal Group has calculated that a typical UK employee with access to a comprehensive employee benefits platform could save a whopping £1,080 per year via shopping and recreational discounts, save more than £930 per year via existing childcare voucher schemes and save £1,695 per year on debt interest payments. Just these three employee benefits combined are the equivalent of a 13% pay raise for an employee on the UK average salary of £27,600.
Personal Group’s research also shows that if employers were to implement an employee benefits programme which provides everything from insurance, salary sacrifice, discounts and rewards to HR communications, staff surveys, e-payslips, total reward statement and other engagement programmes, they can make a tangible positive impact on an employee’s pay packet, general happiness and overall wellbeing. But the impact is not only on the physical, financial and emotional wellbeing of staff, it can have a significant impact of the organisation’s bottom line too. According to Monster, the typical UK employer has 15% attrition (rising to a staggering 26% in some sectors). With each employee costing an average of £5,433 to replace and analysis from Oxford Economics showing employers lose a further £25,000 in lost productivity during the first 28 weeks of each new hire, any improvements to retention, attraction or productivity can have a big impact.
Research from Personal Group demonstrates how a company with 1000 employees can save more than £125,000 per year with the introduction of an employee services platform and a holistic wellbeing programme. This is achieved through reduced absence, improved retention, lower administration costs and savings in VAT, NI and tax. An integrated benefits strategy, will not only go some way to reward and recognise staff so they feel valued and happier in the workplace, but can add significant value to the bottom line.
Mark Scanlon, Chief Executive of Personal Group said: “With total pay falling in real terms, employers and employees up and down the country are feeling the squeeze. A company’s benefits strategy should address the specific challenges faced by staff, supporting their longer-term physical, financial and emotional wellbeing as well as making a difference to their wallet today. Employee Benefits are no longer just an HR focus but a business imperative.”