According to new research, almost half of employers in the UK include basic statutory rights as employee benefits and perks. In this article, we discuss the difference between statutory rights and genuine employee benefits.
We also consider which company benefits employees value most, and the importance of offering the right employee benefits.
46% Employers Pass off Statutory Rights as Benefits
The research in question was conducted by Rippl, an employee recognition, rewards, and benefits platform. Rippl analysed current vacancies advertised on top job site, Indeed, last month. The research findings reveal that a staggering 46% of UK employers are passing off basic statutory rights as exceptional employee benefits.
Statutory rights which have been included on an employer’s list of employee benefits and perks vary. Those seeming to be referenced most frequently include “company pension”, “20 days holiday”, and “sick pay”. All of these are basic statutory rights to which all employees are entitled under the Employment Rights Act 1996, yet they are being disguised as specific company benefits.
Read: Employee Benefits Are a Priority for Job Seekers
Due to Cost of Living Problems
The findings also showed that employers often used basic necessities or underwhelming treats as enticements to join their companies. Examples of such included “free tea”, “free fruit”, and, in one case, even “free water”. Additional employee benefits frequently flaunted by prospective employers included “free parking” and “on-site parking”, with a startling 66,000 and 95,000 references each.
Rippl’s CEO, Chris Brown, has expressed his scepticism that such perks are likely to influence top candidates. He stated: “Offers such as flexible working and genuine wellbeing support would be more likely to resonate with potential workers.” He added that providing more meaningful benefits would “create a positive, purposeful and attractive workplace culture that fosters employee engagement, productivity and retention.”
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What are Statutory Rights for Employees?
In an employment context, statutory rights are the basic rights to which all employees and workers are entitled under the Employment Rights Act 1996. These are predominantly to ensure that all employees and workers in the UK are treated fairly. Under English law, all employers are obliged to uphold their employees’ and workers’ statutory rights and may face legal consequences for failing to do so.
Read: Top Workplace Benefits To Offer Your Workforce in 2024
A person’s employment status will impact the statutory rights to which they are entitled. Whilst some statutory rights apply to both employees and workers, employees enjoy some additional ones besides, as discussed below. Some employers may offer their employees additional contractual rights which should be specified in their contracts of employment. Statutory rights therefore typically constitute the bare minimum of an employee’s entitlement.
Some examples of basic statutory rights for both workers and employees include:
- National Minimum Wage
- Holiday pay
- Rest breaks
- Fair working hours
- Protection against unlawful pay deductions
- Protection against discrimination
In addition to these, from the first day of their employment, employees are entitled to:
- Statutory sick pay
- Adoption leave
- Equal pay
Employees will be entitled to further statutory rights once they have been with their employer for specific lengths of time. These include notice of dismissal (the length of which will lengthen over time), guaranteed pay following layoff, and maternity/paternity/parental leave and pay. After two years with their employer, employees’ statutory rights increase to include protection against unfair dismissal and redundancy pay.
Offering Relevant Employee Benefits Alongside Statutory Rights
Whilst employers are required by law to uphold their employees’ statutory rights, there are advantages to offering additional employee benefits. The nature and extent of such company benefits could vary widely from health insurance to free gym membership to company loan schemes. Some will offer wellbeing benefits for employees whilst others might focus more on financial support.
Whatever the type(s) of employee benefits offered, employers often find that such generosity is well rewarded. Those employers promising competitive benefits packages to their employees are likely to attract high-quality candidates for their businesses. Moreover, investing in employees in this way is seen as a mark of belief and value. It is also likely to have a positive impact on employee retention.
Read: Employee Financial Wellbeing a Concern as UK Workers
May Not Be Able to Afford Retirement
Providing employees with a generous benefits package which they appreciate is guaranteed to boost morale within the workforce. Employees who feel valued typically feel a sense of loyalty and commitment to their employer. This, in turn, is likely to lead to increased productivity and employee satisfaction, thus creating a happy workplace culture.
Investing in wellbeing benefits for employees will result in a healthier workforce. Such benefits could encompass an employee’s physical and/or mental health. They can range from help with medical expenses to mental health support to workplace gym equipment or fitness classes. The effects are all positive, however – healthy employees are happy employees, which is key for success in a business. Unfortunately, one in three employees feel their employer is not interested in their physical and mental wellbeing, according to research conducted by Engage Health Group, which is where more compassionate employers can really make a difference.
What Employee Benefits Do UK Workers Want?
It would seem that there are extensive potential advantages to both employers and employees for establishing a great benefits package. As such, it is perhaps unsurprising that many companies have conducted surveys with a view to discovering exactly which benefits employees value most.
Compressed hours/ Four Day Work Weeks
Shorter work weeks are highly prized by many employees. A survey by Qualtrics showed that 92% of participants would prefer a four-day work week, with 72% stating that this would be the case even if daily hours were extended.
Moreover, Trio Media, which has been piloting a four-day work week, has confirmed that favourable consequences have included increased staff wellness and a 44% financial improvement.
Financial Assistance
With the cost of living on the rise, financial benefits for employees are becoming increasingly attractive. Employee discount schemes and payroll benefits (such as salary sacrifice for bicycle hire or childcare vouchers) are generally met with enthusiasm.
Employers can also benefit from employee discount schemes and payroll benefits, as they increase financial stability, thereby reducing stress and making for happier employees.
Health Insurance Packages
Meanwhile, a survey by Paydata revealed that 21% of participants ranked healthcare as their most valued employee benefit. Health insurance packages will enable sick employees to get better faster and minimise the time they need to be off work.
Moreover, offering enhanced sick pay will ensure that employees give themselves time to recover fully, preventing presenteeism and the risk of employees spreading contagious conditions in the workplace.
Dog-Friendly Offices
Britain is known to be a nation of dog lovers, but a study reported by Kennel Club has demonstrated the extent of our devotion to our four-legged friends. According to the research findings, 52% of employees would like to bring their dogs into the office, and 50% would be more likely to accept a job with such a dog-friendly employer.
Allowing dogs in the workplace can reduce employee stress, boost workforce morale, and increase productivity and creativity, according to research, all of which are hugely beneficial to employee wellbeing and thus employer success.