Upgrading employee benefits as your business grows

A high-quality employee benefits package can support your team at any size, but if your business has grown from fewer than 10 employees to 50 or 100, their needs will likely change. Employee benefits play an important role in helping you build a more productive workforce and support your employees' well-being and financial health. Reviewing your existing benefits package can help you plan for future scaling.

If you introduced a benefits package as soon as you recruited your first employee, did you consider whether those employee benefits would scale in line with business growth? As you take on more employees, it's a good idea to review your existing benefits package to see whether it still meets your needs and will grow with you. Alternatively, if you're creating a new benefits strategy from scratch, think about whether the employee benefits you introduce will still work if employee numbers increase further.

Whether you're building on the employee benefits you already offer or introducing new ones, here are a few benefits we think are worth considering. They can help to increase job satisfaction, improve employee well-being and underpin a positive company culture.

Health insurance

Private medical insurance gives your employees quick access to private medical treatment, along with a variety of other health and well-being services. You can provide your employees with health coverage by buying a group health insurance policy. Depending on your chosen provider and policy, you'll have access to various insurance options as standard. You can choose extras to tailor coverage to your employees' needs and your budget.

Small business health insurance

The major health insurance providers offer policies designed for small businesses. You can cover up to 249 employees with a small business policy. Some providers will cover one employee, while others ask for a minimum of two. Small business policies offer coverage and services such as mental health support, direct access to various treatments, a 24/7 digital GP service and member discount programmes as standard, plus a range of optional extras.

Employee Assistance Programmes (EAPs)

Employee Assistance Programmes (EAPs) provide access to counselling without a GP referral, along with financial and legal helplines.

With a smaller team, colleagues may be able to offer each other peer support, but that can become more challenging as your business grows, meaning an EAP can offer valuable support. It can also help address sensitive issues in employees' personal lives, such as financial or legal concerns they may be reluctant to discuss with colleagues, regardless of business size.

Speak to a broker

Speaking with a specialist broker gives you insight into the range of insurance policies available and which will best meet your needs. If you're investing in employee medical insurance for the first time, a broker can help you to future-proof your coverage and recommend providers with excellent coverage across business sizes, so your policy will adjust if you grow your team further in the future.

If you already have a policy but need to switch, this can be complex. A broker can help guide you through the process.

Flexible working

Flexible working arrangements can take different forms depending on employee needs and business requirements. It can help your staff create a healthy work-life balance that's tailored to them.

Flexible hours

Flexible hours let your staff request changes to their working pattern. Many possible working patterns can support a positive work-life balance. For example, you could set core hours with flexible working around them. Alternatively, you could let staff set a regular adjusted working pattern where they start and finish earlier or later, or condense a five-day week into four days. Flexible hours can support parents, carers, employees with physical or mental health needs, or those who want to save money on their travel costs by travelling at off-peak times.

Flexible location

A flexible working location can support permanent home working or hybrid working, where staff split their time between home and the office. If staff are going to work from home full-time, consider how you'll ensure they feel part of the team, ways to support their mental health needs and how to assess their health and safety requirements.

Create a policy

Flexible working can support a good work-life balance, and it's infinitely scalable as you can tailor the benefit to each employee. However, you should also consider how adjustments will impact your business success. Do you need to ensure that all team members come to the office for specific tasks or at certain times to deliver good customer service or support collaboration? Creating a policy now will help you create fairness when considering flexible working requests in the future.

Financial protection

Comprehensive employee benefits can provide your employees with financial protection for themselves and their families if they die or are unable to work due to illness or injury. Three main policies can offer a financial safety net. Investing in group policies means the benefits can scale as you take on more staff. They also become more cost-effective because your insurer can spread the risk, lowering the cost per head.

Death-in-service benefits

Death in service benefits pay a lump sum to an employee's loved ones if they die during their employment with you. Each employee can nominate their chosen beneficiary, and the lump sum typically pays into a trust, so it isn't subject to probate or inheritance tax. You can provide death-in-service benefits by investing in a group life insurance policy.

Group income protection

Employees in the UK are entitled to up to 28 weeks of Statutory Sick Pay (SSP) during an absence from work. However, SSP payments are typically much lower than a standard salary, so an employee may struggle to pay bills, especially during a prolonged absence.

Income protection insurance lets you pay enhanced sick pay equivalent to a percentage of an employee's usual salary for up to two years while only paying the cost of the premium. When you exceed 50 employees, group policies become much more cost-effective. Policy terms vary between providers, and a broker can help you understand your options.

Group critical illness insurance

Critical Illness insurance pays a lump sum if an employee is diagnosed with a serious illness that's listed on the policy. Employees can spend the payment however they choose, whether to pay bills, fund nursing care or adaptations, or leave money for their loved ones. Getting advice from your accountant and speaking to a broker can help you understand whether critical illness cover is a worthwhile investment for your business.

Pension contribution matching

You're legally required to enrol your existing employees into workplace pensions and pay a statutory minimum contribution. However, as your business grows, offering pension contribution matching can give you a real competitive advantage in attracting new recruits. It can also boost employee retention and job satisfaction.

Pension contribution matching involves offering to match employee contributions up to a specified percentage, enabling them to boost their retirement savings and demonstrating your commitment to their long-term financial security.

Get specialist advice

It's a good idea to seek specialist advice and create a policy to ensure long-term affordability. Your accountant can create a financial forecast and help you assess suitable contribution levels. That way, as you recruit more employees in the future, your benefits strategy will remain cost-effective.

With a team of fewer than ten employees, it can be easy to discuss new benefit offerings and take questions. However, this can become more challenging as your team expands. In any case, it's always worthwhile having a system that lets staff check what their employee benefits include and how to access them. You should also consider how to remind staff about benefits, for example, through posters, training sessions, or regular emails.

Investing in insurance can be a cost-effective way to provide your staff with benefits that will grow with your business. Contact us for tailored advice to help you find the right insurance policies for your needs.