Bosses also reap the benefit of offering staff perks

Here’s a novel idea. If your staff are entitled to employee benefits, it might be a good idea to let them know.  Because offering employees benefits such as private health insurance – and crucially, letting your staff know they’re entitled to them – reduces staff turnover and sick leave, which ultimately saves your business time and money.

These are the findings of a new report by the Cass Business School, which estimates £2.7 billion is lost every year from staff turnover. 

Replacing a member of staff is said to cost on average of a year’s salary due to the cost of recruitment, training and lower productivity.  If an increase in salary isn’t possible, making staff aware of the perks on offer is a good way of making sure they don’t leave, say the authors.

Of course, these reports have to be taken with a pinch of salt.  The research was commissioned by Unum, which sells income protection insurance to employers, so they obviously have a vested interest in promoting employee benefits.

But the thesis is still largely true.  Even getting involved in the Cycle to Work scheme is likely to make your employees think twice about jumping ‘on their bike’, since it not only improves their quality of life, it makes them feel valued beyond the tasks they’re paid to perform.