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Employee Benefits FAQ

If you are confused by the ins and outs of employee benefits, then you are not alone. Both employers and employees can find the subject a bit overwhelming, as a result of the vast choice on offer.

What is evident is that Employee Benefits are a great tool for recruiting and keeping the best staff. In fact, they are now a commonplace component of international remuneration packages.

Frequently Asked Questions

  • What are employee benefits?
  • What are the advantages?
  • What is Salary Sacrifice?
  • What are Incentive Schemes?
  • What are Non-Financial Benefits?

What Are Employee Benefits?

Employee benefits are anything that is offered to the employee on top of the salary that they are receiving. This might be health insurance, pensions, income protection, share options, share schemes, disability insurance, etc.

What Are the Advantages?

For international placements, employee benefits are now considered a core component of the offer and an attractive employee benefits package can help to secure good employees. It can be cost effective for the employer, and can make life easier for the employee by providing benefits such as pensions and gym membership that they would otherwise have to organize themselves. Employee benefits can also be a good tax deal for both parties.

What is Salary Sacrifice?

A salary sacrifice is a benefit that actually results in a reduction of salary for the employee. This benefits the employer as they are paying less but also the employee as schemes are usually heavily discounted and things they would have to pay for anyway. For example, payments towards a car lease.

What Are Incentive Schemes?

Incentive schemes are most often used in sales based jobs. They work by offering a benefit or reward if an employee meets or exceeds a set target. They are a good way to motivate staff, but need to be planned and managed carefully.

What Are Non-financial Benefits?

Regular employee benefits usually have a financial incentive. However, modern workers are much more focused on work/life balance and may be more interested in benefits that make their life happier. An employer may be willing to offer flexible working or unpaid leave to help working mothers or allow an employee to take a career break.

Employee benefits are a good thing for both the employer and employee. They help to recruit and motivate staff members and can have financial benefits for companies. For employees, they make their job seem more appealing and help organise areas of their life that they would otherwise need to do themselves. They can help people manage their cash flow and make their salary better.

There are so many different types of employee benefits that can be used in varying ways that it is important that both sides understand them. Take your time to do some research, ask questions and work out what is available to you.

If we haven’t answered your questions, please talk to a qualified Holborn Employee Benefits adviser today.

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