Implement staff incentive schemes
Perks and the options
Perks are generally a good method of tempting new employees and retaining workers as they are not related to productivity. Perks can encourage staff attachment to the business.
The options
There are a wide range of perks, including:
- occupational pensions
- leave above the statutory minimum - see our guide on how to know how much holiday to give your staff
- gifts, eg on birthdays
- health benefits, eg health insurance/assessments
- family-friendly and work-life balance benefits, eg flexible working hours - see our guide on the benefits of flexible working.
- 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
- extra training - ie which goes beyond skills needed for the job
Tax
Most perks with an equivalent cash value have tax implications. See our guide on taxable benefits.
Download information on PAYE and National Insurance contributions from the HM Revenue & Customs (HMRC) website (PDF).
Other considerations
The main points to consider in relation to perks are:
- 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. See our guide on how to change an employee's terms of employment.
Subjects covered in this guide
 Print
This Page
Source - Business Link; Crown Copyright.
|
