A company benefits package can enhance an employers image to current and prospective employees. With new government legislation making it compulsory for employers to set up a company pension scheme, it would appear that the desirable ‘old style’ company benefit packages may come back into fashion.
With some additional options costing so little for the employer, now is the opportune moment to enhance a company benefits package. It can also be viewed as an additional benefit rather than a reaction to mandatory legislation and can help to reduce staff turnover by increasing employee loyalty and security.
Company benefits provide a positive enhancement for employers too as employers often have personal life cover policies or private medical insurance. They could opt to pay this through the company, at a very minimal price, whilst reducing their corporate tax and providing the benefit to their employees also. As these types of policies often base their premiums on age, having a company scheme allows the age to be averaged out among employees. This reduces the premiums compared to how much they would be should they have been taken out as individual policies.
Considering most companies will be paying out thousands a month for their obligatory pension schemes, an additional few hundred a month to produce a benefits package that positively influences the company as a whole is a no brainer!