Micro businesses are failing to promote employee benefits to staff despite recognising the value of benefits in retaining and motivating their workforce, new research from Pure Benefits shows.
The study among businesses employing 11 or fewer staff finds that more than half who offer benefits to staff don’t actively promote their benefits as they do not have the time or budget available.
Government data shows there are around 1.07 million micro businesses with fewer than 10 staff across the UK, and Pure Benefits believes they struggle to source employee benefits such as life insurance, income protection and private medical insurance for staff.
The research reveals that keeping and motivating staff are the two biggest reasons for having employee benefits, as the biggest challenges faced by micro businesses are employee retention and engagement and managing profitability.
Recruitment and training costs make staff turnover expensive, plus it is normal to have a period of decreased productivity when someone leaves, making it vital to ensure existing employees are happy and engaged at work.
Employee satisfaction should be a main priority for any business owner, articularly micro businesses, where high staff turnover is common and difficult to combat.
There are many alternative ways of providing employee benefits, such as offering flexible working hours, subsidising travel and fitness packages and giving small gits to employees to show appreciation.
‘The research shows that the majority of these micro businesses do their employee benefits research online,’ says Stuart Gray, founder of Pure Benefits. ‘It makes sense that all the info they need should be readily accessible online, with options to quote on the spot and the freedom to look at different coverage options without having to go through a complex process.’
‘Given that small businesses have regularly changing business needs as they grow, flexibility and simplicity are key.