What Employee Benefits Should You be offering In Europe?
With the recent development in the European RetailTech industry, new challenges are set to make an impact by the beginning of 2023. Staffing is slowly…
With the recent development in the European RetailTech industry, new challenges are set to make an impact by the beginning of 2023. Staffing is slowly becoming a major factor for brands that want to survive the turnaround of the new financial year. Staying relevant in the industry is key, and part of the success of a brand, besides the unique ideas behind its products or services, are the employees of the company itself.
When it comes to the operational challenges connected to the industry, communicating consistently with all employees, retaining the best employees by maximizing staff engagement, and attracting the right talent before competitors rank highest on the agenda for 2022.
What is an employee benefits package?
An employee benefits package is a collection of non-wage compensation that supplements an employee’s salary. It is up to an employer to decide what they offer in a benefits package and it can vary between individual employees based on some of the needs of their job.
Implementing employee benefits in European RetailTech companies can often be overlooked, however, employee benefits packages can guarantee the future success of the company. While not offering such benefits can make the company have fewer expenses short term, in the long run, it can be detrimental in terms of employee retention. In addition, offering benefits will attract talented staff and build an attractive employer brand while creating a perception of a strong, caring, and invested employer. The stats don’t lie, it is estimated that 69% of employees are more likely to stay with an employer who offers a good benefits package meanwhile 68.2% are more likely to take a job if an employer offered a good benefits package. Finally, having employee benefits in place should be considered carefully as it could have repercussions on the company’s budget long term if not thought out carefully.
Generally, there are two main areas in which benefits are categorized: financial benefits and health and well-being benefits:
Since final-salary pensions are a thing of the past, more and more companies are shying away from offering them. The reason behind this trend is that due to increased life expectancies, an unbalanced stock market, and low inflation, the costs of classic pensions are increasing and unsustainable for businesses. Although the availability of classic pension schemes is dependent on the country in which the company is placed, private pension schemes can be a great alternative.
- Share Schemes
Share schemes are an appealing way to build trust between the company and employees while providing an added reason to care for the success of the business. Usually, with these types of benefits, the company gives the employee free shares or matches any shares they buy in the company.
- Travel Loans
Many European companies employ individuals that are not resident in the same city as the operational headquarter. To cover for that, employers will offer their staff interest-free travel loans so they can buy annual tickets making commuting more financially affordable.
- Maternity/Paternity Paid Leave
Women are entitled to a year’s maternity leave and provided they’re eligible they’ll get 39 weeks of statutory maternity pay (six weeks at 90% of full earnings, 33 weeks at statutory maternity pay, and 13 weeks unpaid). Men on the other hand are entitled to paternity leave and can choose to take one to two weeks of Statutory Paternity Leave. Generally, paternity leave must start and end within 56 days of the birth.
Based on productivity or profits, bonuses are a great way to incentivize employees. Sometimes, bonuses are also awarded for attendance, customer service, quality, and team or individual performance.
Health and Wellbeing Benefits
- Private health insurance
Medical insurance as an employee benefit has been around for quite some time and is designed to support an employee in the event, they become ill or are injured. On the flip side, offering medical insurance shows that the employer supports its staff.
- Sick/Duvet Pay
Staff will be entitled to statutory sick pay. The employer is entitled generally to choose a limit for this occurrence to prevent creating a burden for employees who show up regularly. Duvet days work similarly, these days are reserved for those days when employees are not necessarily sick but lack the motivation to work. These periods are built into the annual holiday allowance.
- Flexible Working
Flexible working is becoming a need for employees in today’s society post-Covid. These benefits allow staff to fit work in with other commitments by giving them the chance to choose where to work and can help promote work/life balance.
- Additional Benefits
In some cases, employers, especially in young and dynamic environments such as the RetailTech industry, can have other benefits in place. Such benefits include but are not limited to gym memberships; day-off for special occasions like birthdays and non-mandatory holidays; dedicated development days for educational purposes; rewards with non-monetary items (merchandise, food, activities).
Given this overview of the potential benefits, how do Europe’s biggest countries compare?
In conclusion, employee benefits may vary based on the type of employer, the type of job, and the location of the company. However, it should be noted that the above-mentioned benefits are becoming required additions to classic work contracts. Furthermore, an above-average salary alone in today’s economy is starting to lose its appeal, meanwhile, businesses that offer rewarding employee benefits packages get to retain more employees ultimately improving the quality of the service they offer.
We are Storm5
Storm5 is your best option if you are looking to hire senior-level talent or get hired in the RetailTech industry. We specialized in connecting the world’s most innovative RetailTech businesses with the best talent. Our expert consultants have cultivated a network of highly specialized senior talent in the areas of Data & Analytics, Engineering & DevOps, Product Management, and Sales & Marketing. If you want to attract talent or connect with the best work cultures in Europe with relevant and dynamic Employee Benefit Packages get in touch with us through our socials or contact us via our website!