An employee who serves in any field or industry will enjoy some benefits from his organization. The company can be a small-scale or a medium-sized or even a corporate, they all follow some standards and procedures that include employee benefits and compensation. This principle is strictly followed in all UK based companies.
What do you mean by employee benefits?
An employer gives additional privileges to his employees apart from his salary or wages and is termed as employee benefits. The main reason for providing these benefits is to retain the staff and boost productivity. When the employees are satisfied with their current job then they put their complete soul and mind into their work that increases the turnover of the company. Let us analyze the common employee benefits followed in the UK.
Benefits provided on illness or injuries
Employees are prone to illness and injuries. And it can even happen when they are in the office campus. The employer needs to take care of this situation and should support him during his hard time. There are several illnesses and injuries benefits are provided.
- Sick Pay – employees are given statutory sick pay and are entitled to receive £94.24 per week. And this will cover up to 28 weeks. If the employee needs more leave then they are given occupational sick pay.
- Income protection – when an employee suffers from a long-term illness and finds it difficult to work then the employer will pay each month around 60% to 80% of his regular salary. This will come into force once the statutory sick pay and the occupational sick pay ends.
- Critical illness insurance – Companies in the UK will have a set of special medical conditions. If the employee is diagnosed with any of these special medical diseases then he will receive a lump sum amount from the company for his treatment. The general payout will be 1 to 5 times the annual income of the employee. Common critical illnesses are cancer, heart attack, dementia, and Parkinson’s disease.
- Regular health check-up – Company will conduct regular health checkups to all its employees on yearly basis. This checkup will be completely free of cost. The checkup will cover the functionalities of all vital organs of the employees and will suggest proper medication to be followed.
Benefits provided on death
Nothing can compensate for the life of an employee. The company should also take care of its employee’s family when he is no more. This is basic humanity that has to be shown as gratitude toward the employee who has spent his whole in developing the company and increase productivity.
- Life insurance – The company will cover life insurance to all its employees and at the time of death, his family members will receive the sum assured amount. The payout will be 2 to 4 times their regular salary. This will financially support the deceased family and they can plan their future with this amount
Benefits on Old-age
The company recruits people at their young age and they leave the company at their old-age. The major part of an employee’s life is being spent in the company. So the company should give back-end support at their old age.
- Pension plans – After retirement, every employee needs financial support to live their old-age. The pension plans are framed by the company as the employer as well as the employee will put some amount in the pension account during their working period. When they get retired the company uses the amount generated in the pension account and will give pension to its employee. This will help them to lead a peaceful life.
Benefits for building a strong future
A good company will have empathy for the employee’s future. The company will care about their savings and will take their responsibilities in building them a strong and bright future.
- Share schemes – Few companies in the UK have these share schemes. The company will allow the employee to purchase its share as a form of savings. Either the company will gift its share to its employee or will sell it for a low price to its employees. At one period they can sell their shares and can earn a profit.
Benefits of money savings
Employees will have to face a lot of expenses in their day-to-day life. In this case, they will find it difficult in saving the amount. The company will provide a lot of benefits that will cut-short their expenses and will allow them to save money.
- Car allowance – the employees can get a loan with minimum interest to buy a car. They can use the car for their work and the company will bear the fuel expenses. Also, you can claim your bills for maintaining your vehicle. Certain companies in the UK provide a mileage allowance. Since the maintenance and the fuel expense are met by the company, the employee can save a huge amount.
- Interest-free loans – the employee can get up to £10000 as an interest-free loan. This loan is mainly utilized to travel. The employee can buy an annual travel card or even season ticket using this amount.
- Cash bonuses – most employees can be satisfied only in terms of money. You can give them free treatment and holidays but still, they will be delighted when they receive cash. By grading their performance, the company will provide cash bonuses to the employee. The percentage differs according to job cadre.
- Childcare provision – every employee will be given £55 (approx.) as a childcare voucher and they can use this voucher to buy children accessories in certain stores. Female employees will be impressed with this benefit as they love the way their company cares about their children too.
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All the above-mentioned benefits are commonly followed in most of the companies in the UK. Still, there are many more new innovative schemes are being introduced and are being implemented just to satisfy the employees. As we enjoy the benefits, we need to give our best to the company and should ensure its development and prove ourselves as an eligible and dedicated employee for the organization