Small Businesses Now Believe Offering Employee Benefits Will Increase Productivity
Just a quarter of UK small enterprises still don’t offer any added incentives or perks to their workforce outside of a salary
UK small businesses are beginning to realise the benefits of offering employees additional benefits, according to a report by MetLife.
The MetLife Employee Benefit Trends Study 2017 has revealed that just a quarter of UK small enterprises still don’t offer any added incentives to their workforce, with 76% of these firms planning to reserve this in the future.
When quizzed about their reasons for a more positive change of policy, 66% of respondents said they believed it would increase productivity, while 64% said enhancing wellness was a deciding factor why they changed their mind.
Around 63% said such perks would help with recruitment while 61% believe they would help with the retention of key staff.
Business owners have also been urged to ensure staff are not suffering financially, as new research also reveals that 39% of employees are living from payday to payday compared with 24% in 2015.
While a majority of firms are now more pro-active than ever with regards employee wellbeing, it suggested the added financial cost of such measures is too much for some.
21% of those surveyed said they had previously offered benefits in the past two years, but have since withdrew them.
Tom Gaynor, employee benefits director at MetLife UK, said:
“Small businesses are under considerable financial pressure and it is understandable that many have either not taken the step of investing in benefits for the first time, or in fact stopped offering all but the compulsory auto-enrolled pension.
“However, this calls into question the effectiveness of the intermediary market as a valued source of strategic business advice to small businesses. Benefits should be seen as a performance driver worth investing in, not as a cost without payback.
Our survey is encouraging as it shows the potential that is out there. The industry’s challenge is to help small businesses take the right steps.”