For many businesses, the key to success lies with the people. Finding and retaining talent is becoming more difficult for many companies – with most recent surveys revealing a 112 per cent increase in job searches and around 25 per cent considering leaving their current jobs.
As the workforce demographic shifts, businesses must adapt and consider what the next generation finds attractive about a prospective employer.
It is great to find employees with the right skills, drive, and determination to work in your business but preventing them from leaving is just as important for businesses to keep in mind.
As HR specialists, we have outlined some great incentives for businesses to consider for retaining the top employees in your company:
Finding the right fit depends on the shape of your business, and what you are looking to accomplish from setting up a scheme. With an increasingly competitive marketplace, more businesses are turning to share schemes.
The four HMRC-approved share schemes:
- Enterprise Management Incentives (EMIs)
- Company Share Option Plans (CSOPs)
- Share Incentive Plans (SIPs)
- Save As You Earn (SAYE)
EMI schemes are schemes that allow a company to grant share options to selected employees, meaning that they have the right to purchase these shares at an agreed price.
The most common way this is implemented is when the business is sold. Employees can buy the shares at the agreed price and sell them the same day, giving them the chance to pocket the difference.
This is a great way to increase retention of key staff, by offering them the opportunity to invest in the company.
As no money must be paid by the company, it can often solve the issue of enticing an employee to join or stay at a time when the company may not have cash available to pay in a different type of incentive – such as a bonus.
Cycle to work scheme
The cycle to work scheme is a tax-efficient employee incentive that helps working adults save money on a new bike and/or cycling accessories.
The scheme is born from the Government’s ‘Green Transport Plan’ and aims to reduce congestion and emissions in our cities whilst also promoting healthier, happier commutes. It inspires working adults to swap their car commute for a cycling one, and as an incentive, riders benefit from a tax exemption on the cost of their cycle commuting goods.
This is a great way to not only help the environment and mental health of you employees but offer a fantastic benefit that will attract new talent to your company.
The Childcare Voucher scheme allows working parents the opportunity to sacrifice part of their pre-tax salary to pay for registered childcare. As a result, they make savings on their Tax and National Insurance – up to £933 per parent, per year.
These are operated through salary sacrifice. A salary sacrifice agreement is an arrangement to reduce an employee’s entitlement to cash pay, typically in return for a non-cash benefit.
Each eligible parent can sacrifice a maximum of £243 per month from their salary into their Childcare Voucher account.
To be eligible parents, you must:
- Stay with the same employer
- Make at least one payment into their account every 52 weeks (more than £0)
- Not leave the Childcare Voucher scheme to join Tax-Free Childcare
This is a great incentive to attract those with children and demonstrates the businesses consideration to their home environment.
Flexible working options
There is no doubt that the Covid-19 pandemic has shifted the way we work. Research reveals that by 2025 the most popular employee benefit will be flexible working, as workers consider work-life balance as the most important perk the workplace can offer them.
Let your employees create a flexible work schedule, whether it be the hours they work, when they work, or where they work.
Some employees enjoy the office environment, others might prefer working from home. If you need everyone together once or twice a week, give them the option to be flexible with the remaining days. This is an easy, modernised, and free way of employers attracting new talent.
Employers often offer benefits for candidate referrals, and for good reason: 82% of employers rated employee referrals highest in terms of return on investment (ROI).
Not only is this benefitting your current employees, but it is likely to attract top candidates for the company.
Remind your workforce about this benefit several times a year to ensure that you continue to get a stream of candidates in your queue.
At HR Caddy, we can guide you through the process of looking at your current workforce needs now and, in the future, – especially when it comes to retaining top talent.