The government has announced further cuts to working tax credits for families across the UK. These are set to continue in the foreseeable future with the government stating they are expecting to save £170 Million in 2017 and 250 million in 2018/19.
The expectation is now falling onto employers to find the shortfall for their working parent employees by increasing their salaries and providing flexible working hours.
Could Employee Benefits help cushion the blow for both Employer and the Employees?
The UK workforce demographics has seen a dramatic change over the last twenty years.
Women now make up 47% of the UK workforce, of this figure 38% of the women employed have dependent children aged 18 years and under.
A report by the IPPR thinktank ‘who’s breadwinning in Europe’ highlighted that a third of Britain’s working mothers are the main earners in their family. Many of these women now carry the financial burden due to the dramatic increase in single parenthood over the last 20 years.
The same report also stated that 68.3% of couple households have both parents working full time, however it is single parents who have driven the rise in parental employment.
It is now more important than ever before for employers to consider the needs of working parents and provide a work / life balance.
Employee Benefits can help you to provide your employees with a good work / life balance. By Choosing the right Employee Benefits you can greatly motivate your working parents by providing peace of mind when it comes to the three major chalenges facing them:
1 – Income Protection – Loss of earnings due to unexpected absence from the workplace caused by illness or an accident can have a devastating effect on your employees. Worrying about paying bills and being unable to afford childcare can cause the employees to take additional time off. In general people find it increasingly difficult to return to work after extended absence. By providing your employees with access to a Salary Protection insurance as an Employee Benefit can give them the peace of mind to concentrate on getting back to work. The CIPD reported the average cost of absence for Employers was £554 per employee in 2015. Offering an Income Protection benefit will not only help your employees but also help reduce the costs incurred as a business due to absence.
2 – Childcare – Provide access to Childcare vouchers and help save your employees money on covering these expensive costs. This will help motivate your employees to work longer hours if they want to and increase their loyalty to your Company.
Childcare vouchers as a Benefit provide your employees with the peace of mind that their children are being looked after, which in turn allows them to concentrate on their role. Show that you as their Employer appreciate the time the working parent devotes to your company.
3 – Savings – Help your employees budget their salaries, and provide access to a wide range of savings off top retail brands to make their salary go that little bit further. Increase your employee’s loyalty and attract the best future talent to your company by giving access to a wide range of savings off food shopping, travel, Gym memberships, Insurance, and leisure activities. Forbes released an article that stated that Employee Benefits make employees feel appreciated and improve performance. The article showed that companies that had implemented Employee Benefits saw a 22.2% increase in Company profits due to the increased surge in productivity from their workforce.
If you are interested in learning more about Employee Benefits and what Inspired Rewards Employee Benefits can do for you, please contact Rachael Morse – 0191 250 4530 or email – firstname.lastname@example.org
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