 Happy New Year and welcome to the latest edition of our newsletter! I hope the New Year is off to a positive start. Coming up in this edition, we will be looking at the latest news and exploring how to build an attractive benefits package, with minimal financial implications to the business and more importantly, why they matter. Employee benefits and salary sacrifice schemes: Boosting retention and satisfaction As we enter a new year, business owners are focused on new challenges and staying competitive, retaining top talent and fostering a positive workplace culture are high on the agenda. A powerful tool to achieve this is a strong employee benefits package, especially with salary sacrifice schemes. What are salary sacrifice schemes? Salary sacrifice schemes allow employees to exchange a portion of their salary for non-cash benefits, which are often tax-efficient. Popular options include:
Why salary sacrifice matters Salary sacrifice schemes offer clear advantages for both employees and employers:
Research highlights the importance of offering meaningful benefits year-round to keep employees motivated and engaged. For instance, a recent study found that a significant portion of employees feel unmotivated throughout the year, not just on Blue Monday (HR Magazine). Moreover, with rising fears of burnout, offering benefits that support mental health and well-being can help prevent dissatisfaction and disengagement, which can lead to increased productivity (HR Magazine). While initial setup might seem administratively intensive, the financial and strategic benefits far outweigh the effort. Reduced payroll tax burdens and improved employee satisfaction translate into long-term savings, productivity gains and a more loyal workforce. Additional employee benefits to consider Beyond salary sacrifice schemes, offering a range of benefits can further enhance retention and satisfaction. Flexible working arrangements, such as hybrid or remote options, are highly valued by employees seeking better work-life balance. Wellness programs—ranging from mental health support to gym memberships demonstrate your commitment to employee wellbeing and create a healthier, happier workforce. Career development opportunities, including training and upskilling, help retain ambitious employees who are eager to grow within your organisation. Regular recognition of achievements also fosters loyalty, ensuring staff feel appreciated and motivated. Together, these benefits cultivate a supportive environment where employees are inspired to commit long-term. Final thoughts A robust employee benefits package, featuring salary sacrifice schemes and additional perks, is a powerful way to enhance satisfaction, retention, and overall workplace culture. By investing in benefits that support your team’s financial, personal, and professional wellbeing, you’ll not only create a more engaged and loyal workforce but also strengthen your business’s reputation as an employer of choice. If you’re looking to enhance your benefits strategy or implement salary sacrifice schemes, HayesHR is here to help. Contact us today to build a benefits package that works for your business and your employees. NEWSA tribunal recently found that a white employee, who had complained of race discrimination, was subjected to victimisation and was awarded more than £40,000 compensation. The employee was subjected to offensive remarks, with colleagues speaking about her in Hindi in a manner intended to alienate her. After raising the grievance, the employee claimed exclusion from key meetings and unfair treatment, such as increasing workload and was later dismissed due to ‘lack of care and attention in her work’. The tribunal determined that the employee’s dismissal was directly related to the grievance and awarded compensation for loss and emotional distress. This case highlights the importance for employers to implement clear grievance policies and procedures, prevent retaliation, and provide comprehensive training on handling complaints, diversity, inclusion and maintaining a respectful work environment. KEY DATES FOR DIARY:4th February – World Cancer Day 6th February - Time to Talk Day 8th March – International Women's Day 20th March – International Day of Happiness 1st April 2025: Minimum Wage and National Living Wage changes come into effect. Make sure your pay rates are up-to-date with the new statutory minimum wage increases. 6th April 2025: The rate of employer National Insurance Contributions will be increased from 13.8% to 15%; and the threshold on employee earnings for employer NICs to become payable will decrease from £9,100 to £5,000, effective until April 6, 2028. WHAT'S NEXT:I will be competing in Hyrox Turin on the 1st and 2nd February – wish me luck and I’ll let you know how I get on!  I look forward to hearing from you soon.
Jo
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