What are Perks?
Perks or Employee Benefits cover a broad spectre of benefits an employer can offer to its employees. Some of the most popular staff benefits are life and health insurance, staff discounts, childcare vouchers and pensions.
In this summary, we will give you a quick guide to why you should consider Employee Benefits and what type of benefits you can offer to your employees.
Why use Perks?
The purpose of Employee Benefits is basically to help get the best out of your employees. When your staff are happy and feel appreciated, they are more engaged and their performance and productivity will increase which in turn leads to higher growth and profit. It’s very simple:
Engaged employees = higher productivity = higher profit
66% of staff say that they would be more likely to stay with an employer that offers good benefits (Employee Insight Report 2015, Capita).
So both to attract and retain the right staff it makes sense to look at Employee Benefits as one way to engage your employees.
Each employee want something different, so it is important to have a mix of benefits in your Employee Benefits package.
There are basically three ways to categorise perks:
- Core Benefits
- Flexible Benefits (flex) and Flexible Benefits Packages
- Voluntary Benefits
Core Benefits is the term given to benefits which all staff enjoy, such as pension, life insurance, income protection and holiday.
Flexible benefits, often called a “flex scheme”, allows employees to choose how a proportion of their salary is paid.
In a salary sacrifice arrangement an employee gives up the right to part of their salary. Usually the sacrifice is made in return for the employer’s agreement to provide them with some form of non-cash benefit.
The most popular types of salary sacrifice benefits include childcare vouchers and pensions.
Via our Benefits portal we give your employees easy access to their flex schemes. We can link to the programs you have in place which makes it much easier for the employees to find the benefits and make sure they use and appreciate the benefits.
Voluntary Benefits is the name given to a collection of benefits that employees choose to opt-in for and pay for personally, although, as with flex plans, many employers make use of salary sacrifice schemes where the employee reduces their salary in exchange for the employer paying for the perk.
Voluntary Benefits include:
- Government-backed (and therefore tax-efficient)
- Cycle to work
- Pension contributions
- Childcare vouchers
- Staff discounts
Staff discounts or employee discounts include discounts on retail and leisure vouchers, gym membership and discounts at local shops and restaurants. These benefits are typically managed by an external provider like LogBuy.
We have created a portal and a mobile app where your employees can find over 3,000 staff discounts all over the UK. This covers both cashback deals, shopping cards and direct deals with national retailers like Apple and local deals like restaurants, hairdressers, etc.
Staff discounts are very popular among staff as they provide savings directly from their daily life spendage. An employee saves on average £1,500 per year. It is easy to implement within your company and works for all employees compared to e.g. childcare vouchers that only work for parents or cycle to work schemes that only work for people that cycle. Our stats shows that 56% of potential LogBuy members have activated their profile, of that amount 75% are active in receiving their deals.