Springfords LLP blog

Some news, views and comments about everything and anything, relevant and irreverent.

Employee incentives

04 May 2015

The economy is on the up. It must be true.  All the politicians are saying so.  Just turn to the situations vacant column, and take your pick.  Go along to the job interview and the prospective employers will be salivating at the prospect of snaring a talented individual from the rapidly diminishing pool of … talented individuals.  “Name your price!”  That’s their unanimous cry. 

“A unicorn and a flying carpet,” is your immediate response, and they’ll be on the phone to Ali Baba faster than you can say “Give me three wishes as well.”

In reality though, our demands are a little more down to earth.

PwC have recently taken a look at the sort of incentives that are important to us in everyday life and work.  The sort of things that encourage us to keep our noses to the collective grindstone are much more pragmatic than airborne Axminster

After the obvious incentive of salary, two thirds of the almost 2500 UK employees surveyed said they most prized a pension contribution from their employer.  It seems that the thought of being secure in the first day after we stop slaving away at the corporate coalface is the only thing that keeps us turning up at the corporate coalface, right up until the day we gracefully retire.

Almost a half of us would value an employee share incentive scheme, but that may be tempered by the fact that not all of us work in companies that can offer a share in the business, whereas all of us expect to get old.

It seems that a flash car and even flashier teeth are not the incentives they once were.  Rather less than a third of employees would wed themselves to the company for these particular benefits.

It’s nothing new for companies to offer their own goods and services to staff.  Cut price cruises from travel companies or half price hotels from hospitality providers are quite common.  They give a boost to loyal staff in jobs some of us may see as a pretty raw deal.

That though, as they say, is hardly the beginning.

Some companies offer the most extraordinary benefits to retain staff loyalty.

In America, land of opportunity, where employers know that some other employer will offer a new opportunity before long, they go to some lengths to retain key staff.

Never mind cars and dental work, Facebook encourage female staff to stay onboard by offering to freeze their eggs - so they can start a family in later life - and presumably post a ‘like’ into the bargain. Plus an insurer in Nebraska with a hands on approach offers at desk massages and has an HQ located pizza restaurant for their muscle relaxed staff. 

It’s a far cry from the tea trolley and one lump or two, but we can’t help thinking do all these differentiating incentives  attempt to replace what’s really good about being in the workplace.  Good people and good times.  They say find a job you like and get five extra days in your week.  We say, whether you’re in RBS or Google, sharp suits or sweatshirts, if you get on with the people you work with, and you like what you do, that’s the best incentive package you can ask for. 

However, if you do want to introduce some employee incentives to remain competitive in the job market , then remember each  has different tax implications  both for your employees and for you as an  employer so get in touch with us to explore the options.

About the Springfords blog

springfords blog

Some news, views and comments about everything and anything, relevant and irreverent.

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