What’s new in employee benefits?

It’s cited as one of the main reasons why employees decide whether to accept or reject a job, and we know that the right employee benefits strategy can drive loyalty and productivity in business. But attracting top talent isn’t just about delivering a good range of benefits – to maximise the effectiveness of your benefits package, and compete successfully for talent, you need to be offering the incentives that today’s millennials need and expect from their job.

So what trends in employee benefits are worth considering for your business?

1)    Increase in wellbeing benefits:

Health has always played a key part in packages but wellness benefits are becoming increasingly popular with employees, with options now including benefits as diverse as lifestyle coaching, incentives or bonuses for participating in fitness activities, and even on-site massage therapy.
Healthy employees are known to be more focused and productive, so perhaps it’s no surprise that employers are placing a greater focus on emotional wellbeing too and the importance of a mindful workplace. In our fast-paced, digital, hyper-connected world, employers are recognising the need to support their staff mentally, as well as physically, which has been reflected in an increased interest in mindfulness techniques such as meditation.

2)    Increased flexibility:

For free-thinking millennials, who see the appeal in working in unconventional ways, flexibility in work is perhaps one of the main priorities. The future of work is shifting to alternative schedules with flexible options. Employers should consider how to better accommodate their workforce, whether that’s encouraging downtime from work, offering flexible working practices, or helping them to achieve a better work-life balance by enabling commitments to be met outside of work.
Sabbaticals too, are gaining in popularity as a means for businesses to retain their most valuable employees, attract top talent, and increase productivity – in an age where young professionals are looking to change their jobs so often, sabbaticals offer a practical solution for holding on to your talent.

3)    Financial health:

It’s not all about physical and emotional health – many employers are now providing resources to help employees better manage and invest their money. The recent reduction in Lifetime Allowance means that paying into a pension fund has become more expensive for employees, and individuals are increasingly seeking alternative ways of saving. From financial education workshops to online retirement planning tools, millennials are looking for new and better ways to protect their savings. Couple this with the fact that financially literate employees are generally happier, healthier, and less stressed, and financial health benefits appear a no-brainer.

4)    Accessible platforms:

Benefits packages themselves will increasingly need to be made more accessible for both employers and employees alike. As companies continue to grow and expand nationally and globally, considerations for staff split across multiple time zones should be taken into account. Those packages that offer the most choice and flexibility will be most attractive for businesses, particularly new online platforms where information can be presented in a variety of different formats.

5)    Increasing ties to technology: 

The digital-savvy employees of today care about technology – and having access to the latest, up-to-date products is an instant draw, particularly for those entering the workplace for the first time. Powerful laptops and computers, including MacBooks and hybrid laptops, can benefit employers through increased productivity and efficiency, while products on offer to entice employees include smartphones, HD televisions and even gaming consoles. We’re also seeing an increased need for ever more personalised technology, whether it’s health-centric wearable technology, smart clothing or apps that are built upon individual’s personal data and preferences. To keep up with millennial demands for efficiency, accessibility and personalisation, benefit packages need to reflect the demand for schemes that are tailored to individual employees, rather than a blanket workforce – in turn, how businesses measure employee metrics is likely to become more enhanced.
Having the right technology benefits in place will enable you to improve employee retention, and keep hold of your millennials, without having to find room in the budget for expensive pay rises.

While few businesses can afford to offer every element in their employee benefits package, ignoring these trends could cost your business significantly when it comes to staff turnover costs and loss of productivity. Whichever benefits you choose to include, adopting a fluid and flexible approach that appeals to an intuitive workforce will put you in the best position to attract, engage, and retain your talent.