How SMEs Can Build an Attractive Benefits Package

In today's competitive job market, small businesses in the UK face a challenge: attracting and retaining talented employees without the financial power of large corporations.

While you might not be able to match the astronomical salaries or extensive partner benefits that big companies can offer, you can still create a compelling benefits package that appeals to prospective employees. An attractive benefits package can enhance employee satisfaction, boost productivity and grow loyalty.

Here’s how to build a practical and appealing benefits package for your small business:

1. Understand What Your Employees Value

Before creating a benefits package, understand what your employees value most. Small business owners have the advantage of being more close to their teams, so use this to your benefit. Conduct surveys or hold informal discussions to gauge their preferences.

Popular benefits often include:

• Flexible working hours

• Remote or hybrid options

• Professional development opportunities

• Health and wellness support

• Additional holidays

By identifying what matters most to your team, you can tailor your offerings to meet their desires, making your benefits package more appreciated.

2. Offer Flexibility with Remote or Hybrid Working

The COVID-19 pandemic has shifted employee attitudes and expectations, with many workers now prioritising working remotely or under a hybrid model. This option can be cost-effective for small businesses to enhance their benefits package without significant financial investment.

The benefits of flexible working arrangements include:

• Lower overheads for office space

• Increased job satisfaction and morale

• Access to a broader talent pool beyond your local region

Even if you can't offer fully remote roles, allowing employees to work from home a couple of days a week or offering flexible hours can make a big difference.

3. Think About Development Opportunities

Investing in your employees’ professional development is a win-win situation. It helps them grow their skills and feel valued while your business benefits from their increased expertise.

Some ways to implement this include:

• Online courses and workshops

• Industry-recognised certifications

• Access to learning platforms like Skillshare

• Paid time off to attend seminars

By demonstrating a commitment to employee growth, you enhance your team’s capabilities and build loyalty.

4. Consider Health and Wellbeing

Supporting employee wellbeing is crucial, particularly as mental health awareness grows in the UK. While large firms may offer comprehensive private healthcare plans, there are cost-effective alternatives that small companies can consider.

Some examples of health and wellbeing benefits are:

• Subsidised gym memberships

• Access to mental health support

• Plans that cover dental check-ups and eye tests

• On-site initiatives like mindfulness workshops

• Free healthy breakfasts

Even small gestures, like providing fresh fruit in the office or organising weekly team walks, can show your commitment to your team’s wellbeing.

5. Tilt Work-Life Balance the Right Way

One of the most simple and effective ways to enhance your benefits package is by offering bonus annual leave. Statutory holiday entitlement in the UK is 28 days, including bank holidays, but offering a few extra days can be an excellent perk that doesn’t cost too much.

Here are some options to consider:

• Additional days as a reward for long service

• Mental health days without prior notice

• Extra days off for birthdays, weddings or other occasions

• The option to buy or sell annual leave

A generous holiday policy shows that you value your employees’ need for rest and recovery, which can help prevent burnout and improve overall job satisfaction.

6. Introduce Simple Financial Benefits

While you may not be able to offer big bonuses or complex share schemes, you can provide some meaningful financial benefits that suit a smaller budget.

Affordable financial perks include:

• Pension contributions above the minimum required

• Salary sacrifice schemes for benefits like childcare or EV leasing

• Staff discounts on the products or services you offer

By offering modest monetary perks, you can help employees feel more financially secure and appreciated, boosting their loyalty to your business.

7. Provide Personalised Perks

One of the biggest advantages of being a small business is the ability to create a close-knit company culture. You can offer personalised perks that make employees feel valued as individuals, such as:

• Celebrating birthdays or work anniversaries as a team

• Giving gifts for exceptional performance

• Allowing pets in the office unless allergies are a concern

• Hosting after-work social events

• Relaxed dress codes

Creating a welcoming, inclusive culture where employees feel recognised can be as important as any formal benefits package. It’s often these small, personal touches that employees remember and appreciate most.

8. Communicate Your Benefits Clearly

The value of your benefits package can be lost if employees are not aware of what’s available. Ensure you communicate the benefits you offer during the hiring process and throughout employment.

Ways to improve communication include:

• An employee handbook detailing all benefits

• Regular reminders via email or in meetings

• One-to-one discussions during performance reviews

Keeping your team informed and regularly gathering feedback ensures your benefits package stays relevant and well-utilised.

In Summary

Building an attractive benefits package for a small company in the UK doesn’t necessitate a large budget. By focusing on flexibility, wellbeing and a positive culture, you can create a compelling offer that appeals to potential hires and keeps your existing employees happy.

Remember, listening to your team and tailoring the benefits to suit them is key. With a bit of creativity and a genuine commitment to supporting your employees, you can select benefits that set your business apart.

Investing in your people is one of the best ways to create a thriving enterprise. Happy, healthy employees are more productive, loyal and engaged–a benefit every business can afford.

Let Us Help Your Business

BusinessComparison can help you compare vital business products and services, securing the best deals and saving precious time. Compare with us today to save time and money.