How to Build a Competitive Benefits Package

Salary alone is no longer enough to attract and retain top talent. Employees today expect more more support, more flexibility, and more opportunities for personal and professional growth. A well crafted benefits package goes beyond the statutory minimum, setting businesses apart in a competitive job market.

But what makes a benefits package truly competitive? And how can businesses especially SMEs design one that is both cost-effective and appealing to employees? Let’s explore the key elements of a benefits package that doesn’t just meet expectations but exceeds them.

1. Health and Wellbeing – More Than Just Private Medical Insurance

Healthcare benefits remain one of the most sought-after perks. While private medical insurance (PMI) is a great option, it's not always financially viable for smaller businesses. The good news? There are cost-effective alternatives that still prioritise employee wellbeing.

• Healthcare cash plans – These allow employees to claim back costs for routine medical expenses like dental, optical, physiotherapy, and GP consultations.
• Employee Assistance Programmes (EAPs) – Providing mental health support, counselling, and financial advice to support employees beyond the workplace.
• Gym memberships & wellness stipends – Encouraging employees to maintain a healthy lifestyle.
• Digital GP services – Quick and easy access to medical professionals can be a game-changer for employees with busy schedules.

By offering a mix of these benefits, businesses can demonstrate a commitment to employee wellbeing without breaking the bank.

2. Flexible and Hybrid Working – The New Standard

Post-pandemic, flexible working has become an expectation rather than a perk. Employees value the ability to tailor their work schedules to their personal lives. In fact, a lack of flexibility is often a deal-breaker for job seekers.

• Remote and hybrid work options – This can help with work-life balance, mental health, and even productivity.
• Flexible hours – Allowing employees to start and finish at times that suit them can be a game-changer for parents and caregivers.
• "Work from anywhere" policies – Giving employees the option to work remotely for a certain number of days per year can enhance job satisfaction.

Companies that embrace flexibility don’t just attract top talent they also improve retention rates and boost morale.

3. Enhanced Family Leave and Support

Statutory maternity and paternity leave simply isn’t enough to support working parents. Businesses that go beyond the legal minimum in this area stand out as truly employee-centric.

• Enhanced maternity and paternity leave – Offering extended paid leave shows commitment to employees’ family responsibilities.
• Parental coaching and return-to-work support – Helping parents transition back into work with flexible schedules or phased returns can reduce stress and increase loyalty.
• Childcare support – Whether it's financial assistance for nursery fees or on-site childcare options, this can be a huge relief for working parents.

When businesses prioritise family-friendly policies, they create a more inclusive and supportive workplace culture.

4. Financial Wellbeing and Future Security

Financial stability is a major factor in employee wellbeing. Beyond salary, there are several ways businesses can help employees feel more financially secure:

• Enhanced pension contributions – Going beyond the minimum auto-enrolment contributions can help employees plan for the future.
• Salary-sacrifice schemes – Tax-efficient ways to offer benefits like cycle-to-work schemes, electric car leases, or additional pension contributions.
• Bonuses and profit-sharing – Giving employees a stake in the company's success fosters motivation and loyalty.
• Financial education – Offering workshops on topics like budgeting, mortgages, and investments can help employees make informed financial decisions.

Providing financial support beyond salary can help alleviate stress and create a more engaged workforce.

5. Learning, Development, and Career Growth

Employees aren’t just looking for a job, they’re looking for a career. Businesses that invest in employee development build stronger, more committed teams.

• Training budgets – Allocating funds for courses, workshops, and professional certifications can boost skills and job satisfaction.
• Mentorship and coaching programmes – Pairing employees with experienced mentors can support career progression and personal growth.
• Tuition reimbursement – Helping employees fund further education shows commitment to their long-term success.
• Clear progression pathways – Defining clear career paths and promotion criteria keeps employees motivated.

Investing in learning and development not only benefits employees but also strengthens the business by fostering internal talent.

6. Purpose, Culture, and Recognition

A competitive benefits package isn’t just about tangible perks, it’s also about creating a workplace where people feel valued and motivated.

• Recognition and rewards – Regular appreciation, whether through bonuses, public recognition, or small incentives, boosts morale.
• Strong company culture – A positive work environment, built on trust, inclusion, and shared values, attracts and retains top talent.
• CSR and volunteering opportunities – Employees increasingly want to work for companies that give back to the community. Offering paid volunteering days can be a great way to engage staff.
• Workplace socials and team-building activities – Creating a fun and engaging work environment fosters strong relationships and loyalty.

When employees feel like they belong and their contributions matter, they are more likely to stay long-term.

A well-designed benefits package is more than just an expense, it’s an investment in your people and your business. Competitive benefits attract top talent, improve retention, and enhance overall employee satisfaction and productivity.

The key is to tailor your benefits to the needs of your workforce. What works for a tech startup might not be ideal for a construction firm. Engaging with employees, gathering feedback, and continuously evolving your offering will ensure your benefits package remains relevant and valuable.

By going beyond the statutory minimum and offering meaningful, well-thought-out benefits, businesses can create a workplace where employees thrive and when employees thrive, so does the company.