Businesses that employ 10 or fewer staff members recognise that employee benefits are valuable, but most fail to promote their benefit schemes. These are the findings of research by the Pure Benefits organization, discussed in a November 2016 SmallBusiness.co.uk article.
Employee benefits include income protection, life insurance and private medical insurance. The research found that retaining and motivating staff are the main reasons for providing employee benefits. Recruiting and training staff are expensive, so businesses save money through employee benefits that decrease staff turnover.
Research suggests that employee satisfaction is the best way to reduce staff turnover, and employee benefits can increase happiness levels in the workplace. Micro employers report that high staff turnover is a major issue.
The study found that over half of micro businesses that offer benefits do not actively promote them. Businesses blame budget restraints and lack of time for the low level of benefit promotion.
According to government statistics, there are about 1.7 million micro businesses in the UK, but they there are no figures available that show how many of them provide employee benefits.
If an employee does not receive employee benefits, they have the option of taking out private insurance for income protection cover so that they receive regular payments if they cannot work because of sickness or injury. This will enable the policyholder to pay the household bills, including mortgage payments, when their income drops.
There are also many life insurance policies available that reduce the financial impact on dependants if the main income earner dies.