As a business owner in today’s world, it would be easy to feel overwhelmed by the challenges you face.
The pandemic, market volatility, and rising inflation in the UK could all have acted as roadblocks that might have impeded your company’s ability to thrive.
However, one unexpected challenge that some business owners currently face is an increasing number of resignations. Referred to by many as “the great resignation”, many of Britain’s workplaces are experiencing an exodus of employees.
The great resignation appeared to begin in 2021. According to Statista, almost 400,000 job resignations took place in Q3 alone – the highest number on record within that time period.
As we progress through 2022, Randstad reports that almost 70% of Brits are considering a job change this year.
A tougher world has led employees to require “more” from their work situation
You might be wondering: what has caused so many people to resign? In truth, there seem to be multiple factors at play.
Since the pandemic, the world of work is witnessing a sea change. Indeed, there haven’t been many advantages of the pandemic to speak of, but one potentially positive change has been the introduction of flexible working for many people.
What’s more, employees are facing tough times. The UK’s cost of living is soaring, and other stressors, like the Russian invasion of Ukraine, are causing anxiety for many. As a result, employees may wish to further prioritise work-life balance this year, leading them to search for job opportunities that afford them more than just a salary.
As a business owner, the question on your lips is likely to be: how do you keep talented employees from leaving?
Read on to find out how you can avoid falling prey to the great resignation, and how your Henwood Court financial planner could help.
Perks are key when it comes to retaining talented individuals
As we mentioned earlier, employees are searching for more than just a salary in today’s world.
Even if you are a great leader who offers a competitive salary, many employers are offering attractive perks that could cause your current employees’ eyes to wander. These perks could include:
- Access to healthcare, such as dentistry, eye tests, physiotherapy, osteopathy, private surgery and mental health services
- Comprehensive sick pay
- Paternity leave
- Death in service, which provides life cover to an employee’s family if they pass away while working for that company
- Free or discounted gym memberships
- Access to one-to-one meetings with a financial planner
- A flexible working environment, such as hybrid or fully remote working
- A casual and modern office environment.
Remember: according to Forbes, by 2025, Generation Z will make up 27% of the workforce. As the boomer and Generation X workforce begins to retire, in the next few years you are likely to be searching for young people to join your team.
The younger generations are searching for workplaces that offer them a positive work culture with ethical practices. According to a 2021 Deloitte survey of millennial and Generation Z employees, 49% of respondents said they angled their job applications towards companies that matched their ethics.
So, providing perks that show you care about your employees beyond financial rewards is a crucial step in acquiring and retaining talent.
2 ways to invest in your employees’ futures that could promote long-term loyalty
When it comes to keeping the people who make your business tick, it is important to invest in their futures. Here are two key ways to invest in your employees that could promote loyalty.
- Offer a salary exchange scheme
As you may already know, a salary exchange scheme offers key perks in exchange for a portion of an employee’s salary.
These perks can include:
- Additional pension contributions
- A company car
- Childcare vouchers.
If an employee accepts pension contributions as part of a salary exchange, your employee earns the same amount as they did previously, but takes home less cash. In lieu of this cash, the rest of their salary is invested in their pension scheme on their behalf by their employer.
For employees, a salary exchange scheme can help them save more efficiently towards retirement. It can also help them pay less in National Insurance contributions (NICs) and Income Tax, as these are only paid on take-home salary, not employee pension contributions or other benefits. As an employer, you too will reduce your NICs liability through salary exchange.
By offering a salary exchange scheme, you could reduce your NICs liability, while offering employees a valuable investment in their future, potentially promoting loyalty in the era of the great resignation.
It is important to note that some employees may prefer not to accept a pension contribution salary exchange. Indeed, there are some downsides to this scheme, including reducing their ability to afford a home in the eyes of a mortgage lender, and reducing their eligibility for means-tested benefits.
- Reward loyalty with training, qualifications, and career progression opportunities
Not only are direct investments in your employees’ futures valuable, but offering opportunities that invest in their skills and career development could promote loyalty too.
Indeed, you could nurture your employees’ personal and professional growth by offering opportunities including:
- Training and qualifications paid for by you
- Personal, one-on-one mentoring with you or other senior members of the team
- Webinars, seminars, and lectures that strengthen your employees’ knowledge and firm up their professional confidence
- Prioritising promotion from within rather than external hires, which could motivate employees to seek career progression within your company.
These investments all provide ample proof that your business wants to nurture its employees beyond providing a steady salary. In today’s world, these investments could be just as valuable as providing a welcoming work culture and competitive pay.
Working with us can help you provide unbeatable remuneration packages for unbeatable talent
Obviously, while this may sound great, it all costs money. In hard times such as these, you may be wondering how you can afford to provide your employees with these perks.
That’s where your Henwood Court financial planner comes in.
We can help you review your business expenditure and put together an unbeatable remuneration plan, showing your employees that you value their loyalty, and helping you retain incredible talent at your company.
In addition, we can help you understand the tax benefits of providing employee perks, helping you to save money while keeping hardworking employees on board.
For example, death in service premiums are normally Corporation Tax deductible to the business, and employees are not taxed on this as a “benefit in kind” – making it a win/win for you and your team.
Get in touch
If you want to help your business retain its best people amid the great resignation, get in touch with us today.
Email info@henwoodcourt.co.uk or call 0121 313 1370 to find out more about how we could help you.
