Offering a competitive salary, an interesting job title and a vibrant working environment is no longer enough to acquire and retain talented individuals for your business. Research suggests that 66% of people in the UK believe that employee benefits are equal to or more important than their basic salary.
If you are a business owner and are looking to recruit (and more importantly retain) talented individuals then you should think carefully about the overall benefits package that you offer to potential new employees.
What is the most popular employee benefit?
It really depends on what you read, who is reporting it and what their agenda is. Our own research suggests that the most important employee benefits you should include in your employee benefits package are flexible working and some form of performance related bonus. You should then consider adding additional employee benefits that motivate your employees so that they feel valued and are less likely to leave.
What employee benefits should I offer my employees?
What you offer your employees is ultimately down to you and your budget. Any benefit you add should mutually benefit you as a business owner and the individual in receipt of the benefit.
Most standard employee benefits packages include some or all of the following:
- holiday and flexible working
- financial (such as performance related bonus)
- life and critical illness
- retirement benefits
Typical employee benefits packages can include these additional fringe benefits:
- parental leave
- cycle to work scheme
- childcare vouchers
- dental care
- eye care
- company car
- study resources / study leave
What employee benefits are best for retaining employees?
The best employee benefits for staff retention are those that are hard to replicate. Performance related bonuses can motivate employees in the short term, but a competitor could easily replicate or improve on the bonus you offer.
You should therefore consider adding benefits that motivate employees in the longer term, that help them feel valued and that benefit not just the employee, but the employee's family. Medical, disability and financial products such as life insurance are good benefits for retaining employees long term as they are able to see the added value (and the benefit is not easily replicated elsewhere as you can tailor it to each individual). We will focus on life insurance in the next section as it is one of the simplest policies to set up and can provide a large lump sum benefit at relatively low cost.
What life insurance policy is best for an employee?
If you simply want to set up a life insurance policy that will benefit an individual (rather than your company) to act as an 'employee benefit' then you will need to take out a relevant life insurance policy. There are other types of life insurance that are designed to protect your business if a key employee dies, such as keyman insurance and we cover that product in more detail in our article What is keyman insurance, how much is it and who should get it?
What is relevant life insurance?
Relevant life cover is a form of life insurance policy that is set up and paid for by a company (often referred to as a death-in-service benefit), with the benefit paying to the deceased employee's beneficiaries. Relevant life insurance is a benefit often offered by smaller companies and it can be especially useful for directors or higher earners who have already made use of their lifetime pension allowance (as a traditional group insurance scheme, offered by larger companies would count towards retirement savings). We go into more detail in our article What is relevant life insurance and should you have it?
Which insurance providers offer the best and cheapest relevant life insurance quotes?
Relevant life insurance is available from most of the UK's biggest insurers and those include:
- Legal & General
- Royal London
- Scottish Widows
Most life insurance companies will provide a quote via their website, often requiring you to complete their own relevant life insurance calculator. If you are interested in getting relevant life insurance quotes, then we would recommend that you read on, as we explain how to guarantee the cheapest relevant life insurance quotes (without having to ring around).
Can you have more than one life insurance policy?
Yes. When you take out a relevant life insurance policy, one of the questions on the application form specifically asks about existing cover. So long as there is a need for the cover and that the individual is not excessively over-insured (determined by the insurance company based on a combination of factors such as total salary and affordability) then having more than one life insurance policy is perfectly fine.
How to get the cheapest relevant life insurance quotes
Insurance companies offer various levels of cover and costs can vary wildly from one insurer to another. It is important therefore to shop around and compare the costs of relevant life insurance policies from the various insurers to ensure you are getting the best deal.
An insurance broker is someone who can search all of the insurance companies on your behalf, meaning you don't have to call around to find the best price. There are many reputable insurance brokers in the UK, but there are very few that specialise in relevant life insurance. We have personally vetted the services of a specialist insurance broker, which recommended and put in place insurance policies to protect our business (Money to the Masses).
To arrange a free chat, with no obligation to take things further, just fill in the form via the above link. The firm not only enjoys preferential rates (meaning it guarantees to beat any relevant life insurance quote) they also employ strong ethics, only ever recommending a policy if it suits your business needs.