{"id":9644,"date":"2024-10-31T11:32:00","date_gmt":"2024-10-31T11:32:00","guid":{"rendered":"https:\/\/www.brightmine.com\/uk\/?post_type=resources&p=9644"},"modified":"2026-07-22T10:18:12","modified_gmt":"2026-07-22T10:18:12","slug":"competitive-employee-benefits-package","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/employee-benefits\/competitive-employee-benefits-package\/","title":{"rendered":"Create a cost-effective and competitive employee benefits package"},"content":{"rendered":"\n
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By Paula Flores<\/strong>, HR data insights analyst at Brightmine<\/p>\n\n\n\n

Employee benefits have evolved significantly over the past few years, going beyond basic offerings such as health insurance and annual leave. Today, they can range from perks like wellness programmes to complex offerings such as matching contribution pension schemes. But with budgets stretched and costs rising, how do you make your organisation’s money go further \u2014 and make sure employees really feel the benefit?<\/p>\n\n\n\n

A well-rounded benefits package is essential for any organisation looking to stay ahead in today’s competitive labour market. Research shows the increasing impact of a strong benefits package<\/a>, even at the recruitment stage of the employee life cycle. In a recent study, more than half of respondents agreed with the statement that “they would likely accept a job offer with slightly lower compensation but a more robust benefits package”.<\/p>\n\n\n\n

“Offering strong benefits shows prospective hires that the organisation is committed to their wellbeing and performance. Happy and supported employees are often more engaged and productive, leading to lower absenteeism and higher workplace satisfaction.”<\/p><\/blockquote><\/figure>\n\n\n\n

Despite this, many organisations, particularly at the senior leadership level, fail to fully understand the value of a strong benefits package as part of an organisation’s total reward strategy. As such, responsibility often falls on HR professionals to make a compelling business case, showing not only the value of offering a good package but also its return on investment (ROI). A survey by Innecto Reward Consulting found that 56% of HR professionals believe their organisations need to better understand the ROI from their current benefits offering.<\/p>\n\n\n\n

So how do you create a competitive and cost-effective employee benefits package?<\/p>\n\n\n\n

Set objectives to align with business goals<\/h2>\n\n\n\n

An essential first step is to set clear objectives, which need to be aligned with the organisation’s overall business goals. For example, a well-structured benefits package can improve staff retention: employees are less likely to leave if they feel supported and valued. This is especially critical in sectors facing skills shortages and high competition for talent. Similarly, for candidate attraction, offering strong benefits shows prospective hires that the organisation is committed to their wellbeing and performance. Happy and supported employees are often more engaged and productive, leading to lower absenteeism and higher workplace satisfaction.<\/p>\n\n\n\n

Make sure you have a competitive offer: Doing more with less<\/h2>\n\n\n\n

In the Brightmine<\/a> (formerly XpertHR) employee benefits 2024 study, respondents mentioned that one of their main business priorities was reviewing their organisation’s benefits offering in order to achieve a more competitive reward package.<\/p>\n\n\n\n

“Participants in a recent focus group conducted by Brightmine and Innecto also suggested that a deep review of benefits’ policies can unveil cost-saving opportunities.”<\/p><\/blockquote><\/figure>\n\n\n\n

In practice, a “competitive benefits strategy” will mean different things to different organisations. Generally, it entails offering support in all aspects of an employee’s life \u2014 work-life balance; physical, mental and financial wellbeing; and even impact on society, e.g., volunteering days.<\/p>\n\n\n\n

1. PMIs, EAPs and more<\/h3>\n\n\n\n

One of the main challenges HR professionals face in offering competitive compensation packages is the rising cost of benefits, especially providers’ fees. For example, the median cost of single-cover private medical insurance (PMI) has risen from \u00a3700 to \u00a3741.45 in just a year. As costs increase, many organisations are re-evaluating their provider contracts and the fees charged on a more regular basis. In a competitive marketplace, it’s essential to keep options open and consider different providers to secure the best deals. Additionally, some organisations are adjusting their offerings, moving away from comprehensive PMI policies and exploring more affordable options like healthcare cash plans, which can provide coverage to a larger portion of the workforce at a lower cost.<\/p>\n\n\n\n

Participants in a recent focus group conducted by Brightmine and Innecto also suggested that a deep review of benefits’ policies can unveil cost-saving opportunities. For instance, PMI policies often include additional perks such as gym membership discounts or access to Employee Assistance Programmes (EAPs) and counselling services. By taking advantage of these built-in benefits, companies can eliminate the need to purchase services separately and so streamline costs.<\/p>\n\n\n\n

2. Salary-sacrifice schemes and strategic partnerships<\/h3>\n\n\n\n

Salary-sacrifice schemes are another effective way to help employees stretch their compensation further. By allowing employees to benefit from tax savings, they offer flexibility in shaping individual remuneration packages. For employers, this approach can translate into indirect cost savings while providing a wider range of benefits to staff.<\/p>\n\n\n\n

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“As important as defining the package is measuring its uptake and engagement, in order to understand the value it provides employees as well as its business ROI.”<\/p><\/blockquote><\/figure>\n\n\n\n

Organisations are also in a position to negotiate cost-saving partnerships with other businesses. Collaborations of this kind can lead to benefits that directly pass savings onto employees, from discounted meals at local restaurants and coffee shops to more substantial deals, such as corporate discounts on products and services. As an example, securing corporate rates for a health cash plan or insurance, even without a direct contribution from the organisation, can provide significant savings to employees compared to what they would otherwise pay.<\/p>\n\n\n\n

3. Improved flexible working arrangements<\/h3>\n\n\n\n

Flexible working<\/a> arrangements have become one of the most desired employee benefits. Flexibility accommodates the needs of a diverse workforce, such as caregivers, parents and those who simply prefer a different working pattern. For many employees, the ability to adjust their work schedules is as valuable as, if not more valuable than, traditional benefits like healthcare or gym memberships.<\/p>\n\n\n\n

To find out the kinds of benefits organisations offer, check out our Benefits A to Z<\/a>.<\/p>\n\n\n\n

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