Staff perks: the options
How staff perks enhance the quality of working life and encourage employee loyalty.
Staff perks are generally a good method of attracting new talent and retaining employees as they are not related to productivity. Perks can encourage staff affiliation and loyalty to the organisation.
Staff perks options
There is a wide range of perks that employers can introduce to the workplace, including:
- occupational pensions
- more holidays than the statutory minimum - see know how much holiday to give your staff
- gifts, eg, on birthdays or at Christmas
- health benefits, eg, health insurance/assessments
- flexible working - see flexible working: the law and best practice
- subsidised staff canteens, tea/coffee-making facilities, or goods/services
- loans, eg, season tickets
- social events, eg, Christmas parties and work outings
- membership of social clubs or gyms
- extra training, which goes beyond the skills needed for the job
Perks: some considerations
You may want to consider the following points when providing staff perks:
- they must be perceived as worthwhile
- they must not cost the employer more to provide than the employee could get them for
- they must be worth more to the employee than any tax they will pay on them
Make sure that the perks you choose are relevant to both your business and staff.
Be careful when removing or changing any of the perks you offer. If they are part of your employees' contracts, you will need to gain their consent prior to changing any conditions or removing them. If you do not get consent, the employee may be entitled to sue for breach of contract or resign and claim constructive dismissal. See how to change an employee's terms of employment.
Tax considerations for staff perks
Most perks with an equivalent cash value have tax implications - see expenses and benefits.