How employee benefits can create a positive business culture

Many factors contribute to a positive workplace culture, and employee benefits play a crucial role. Business success depends on recruiting and retaining productive employees with the right skills to support your strategy and provide excellent customer service.

Your employee benefits can create a company culture that delivers excellent results and achieves business growth.

Recruiting top talent

High-quality employee benefits were once a key factor in attracting top talent in a buyer's job market. Times have changed, with recent figures indicating that vacancies have fallen over the past year and in the final quarter of 2024. However, average wages have risen, suggesting employers are investing in their current workforce.

While you may have your pick of well-qualified and talented job seekers, a good employee benefits package demonstrates your commitment to your team and willingness to invest in the right talent.

Employee retention

Employee benefits demonstrate your commitment to employee well-being and help create a positive culture. Whilst a drop in job vacancies may discourage your team from seeking new opportunities elsewhere, there are no guarantees. An employee experiencing workplace stress and burnout may leave the workforce altogether but is more likely to stay in an environment where employees feel valued and supported.

In 2022, the CIPD's Good Work Index found that 20% of employees they surveyed planned to leave their current jobs in the next year. Of those, 35% sought better pay and employee benefits, while 27% were looking for greater job satisfaction.

Investing in employee benefits to retain existing employees makes good business sense. You've already invested in recruiting and training them, and they've developed relationships with colleagues and customers that result in increased productivity and better customer service. 

Increased employee engagement

The quality of your employee benefits offerings demonstrates your commitment to your employee's well-being at work and in their personal lives. Employee benefits can help boost employee morale and increase engagement at a time when research suggests 90% of the UK workforce is 'quiet quitting', resulting in reduced productivity.

Employee engagement increases in a positive workplace culture as your team feels valued and is more likely to spend time producing high-quality work and looking after their colleagues and customers. Your employee benefits can support well-being initiatives, including team-building activities that improve employee morale, build positive workplace relationships and increase engagement.

Improved physical health

Employee benefits such as health insurance can result in lower absenteeism and greater productivity. The World Health Organisation (WHO) found that businesses that invested in health and well-being programs were 20% more productive than those that didn't. Underlying factors included reduced sickness absence and increased performance in the quantity and quality of work produced.

It's also likely that a company culture based on employee well-being encourages and supports its staff to take pride in the quality of their work.

Reduced stress

We're increasingly open about mental health and the importance of looking after our mental well-being. It's estimated that 12.7% of all sick days in the UK relate to mental health issues, meaning a supportive work environment can help to reduce the impact on your business. Stress is a normal part of life, but it can be damaging if it stays at high levels for extended periods, leading to burnout.

Effective management and workload planning are essential, and your company culture should enable workers to seek support. However, your team can experience stress from several sources. Their employee benefits can provide additional support for personal, legal or financial issues outside work.

Better work-life balance

A good work-life balance is a high priority for many employees, with some surveys suggesting it could be more important than salary. A positive work-life balance will likely look different for each employee, meaning employee benefits must be flexible to help them balance their work and personal commitments.

Flexible working can help employees feel supported and manage their well-being alongside their workload. For some, it can help reduce stress by giving them more time with their loved ones or to manage family commitments. Others may find more time to exercise and improve their physical health.

Potential for growth and development

Investing in training ensures your team members develop the skills your business needs to succeed. Around a quarter of employees in the UK report that a lack of career progression has negatively impacted their job satisfaction. At the same time, less than half feel their employer invests in improving their skills.

Showing your staff the career development opportunities your business offers and providing employee benefits that support their progression creates a company culture that values learning and development, increasing retention as employees can progress within your company instead of seeking opportunities elsewhere.

We've considered how employee benefits can influence company culture, so you're likely wondering which benefits are worth including. Creating comprehensive benefits packages means considering multiple factors, which can be complex. Speaking to your employees is a good place to start, as is seeking advice from specialists such as accountants, legal advisers and insurance brokers.

A wide variety of benefits are worth including, but here are a few that can help support a strong company culture and positive work environment.

Enhanced sick pay

Paid sick leave is one of the most highly valued benefits among employees, but employers often underestimate its importance. While you must pay statutory sick pay, offering employee benefits beyond the minimum requirements helps employees feel supported and can give them peace of mind at a difficult time.

Investing in income protection insurance means your employees can continue receiving a percentage of their usual salary while off work. It lets them focus on their recovery without worrying about the bills. The premiums for a group income protection policy are also significantly lower than the cost of paying your employee during their absence, freeing up funds to hire additional help if needed.

Death-in-service benefits

Providing death-in-service benefits to employees shows your willingness to provide your employees' families financial security, even when they're no longer around.

A group life insurance policy pays a lump sum to an employee's nominated beneficiaries if they die while employed by you. Their death doesn't have to be work-related; they just need to be a current employee.

Death-in-service benefits support a company culture where employees and their loved ones feel valued.

Health insurance

Private medical insurance is a sign of a strong company culture and can significantly influence company culture in various ways. Health insurance gives your team quick access to private medical treatment and other services to improve their physical and mental health. You can tailor the policy to your needs and budget and add services such as an employee assistance program offering confidential legal, financial, and mental health support.

Depending on your chosen policy, you can also get advice on developing wellness programs, including team-building activities to support a positive culture and strong workplace relationships.

Employee discount scheme

Employee discount schemes help your team save money and improve their financial health. There are employee discount platforms that operate as a standalone service, where you can choose the benefits offerings you include.

However, most insurance companies offer rewards and discounts to their health and life insurance customers. These can include discounts on gym memberships, fitness tracking technology, spa breaks, holidays and healthy eating.

Some providers offer additional incentives as rewards for healthy living. You could use these as a basis for wellness challenges, which can improve morale and help build a strong company culture.

Flexible working

Flexible work arrangements let each employee tailor their work schedule and location to create a healthy work-life balance. At the same time, the arrangements you offer should suit business needs. There are various ways to approach flexible working, from complete flexibility with core hours to a fixed schedule agreed upon with each employee based on their flexible working request.

Flexible working can help employees create a positive work-life balance and improve their mental health. They may want to come to work after taking their children to school or avoid commuting in rush hour. Working from home for a couple of days each week may improve their focus and increase productivity.

Annual leave allowance

A generous annual leave allowance shows your team that your core values include giving them time away from work to relax, spend time with their loved ones, and do what they enjoy. Annual leave gives your employees a complete break and lets them return refreshed and more productive.

You're legally required to give your employees 5.6 weeks of paid time off each year, but offering more shows your team you know they have a life outside work and want them to enjoy it.

Training and Education

Offering professional development opportunities and training increases the likelihood your staff will stay with you as their career progresses. A strong benefits package could include paid time off to pursue education and training and tuition reimbursement for relevant qualifications.

It's also a good idea to consider what in-house opportunities are available. For example, consider work shadowing and mentorship so employees can experience work in more senior roles or other departments. Internal training and exhibitions to help staff learn more about opportunities within the business can support employee success and a more cohesive company culture.

We hope this guide has helped you learn more about how employee benefits can support company culture. At Globacare, we help our clients invest in insurance policies that support their employee benefits package and a positive company culture. Contact us today for tailored advice.