Aug 7, 2023
Cutting down your employee benefits package will prove costly and disruptive to your business.
Potential recruits, new starters, and long-serving team members want to work for a company with a desirable employee benefits plan. Removing perks is the first step towards longer, more expensive recruitment periods and a drop in retention rates.
Before you start removing employee perks, read this article.
As a business owner, you often need to cut costs wherever you can — and employee benefits packages are an easy target. But, before you start cutting out certain perks, it’s essential to consider the potential impact this will have on your employees — not to mention your business as a whole.
Your company’s employee benefit plan is a crucial consideration point for 63% of potential recruits — making it more important than location and even the opinions of former employees! Not only would cutting your employee benefits package make recruiting harder, but your existing team members will also feel the hit.
And for existing employees, of those who are satisfied with their job, 68% are happy with the overall benefits package. Meanwhile, only 5% of employees are satisfied with their jobs when the company benefits don’t meet their expectations.
Cutting your employee benefits package could have a serious impact on your company. 👇
Offering a competitive employee benefits package is a great way to attract and retain top talent. Take it away, and your employees will look elsewhere for employment opportunities that offer better compensation and perks.
Removing company benefits will cut costs, but high turnover rates will only bring back those budgeting headaches.
A comprehensive list of company benefits shows that you value your employees and their well-being in the workplace. Removing these benefits sends the message that you don’t care about their needs or future with the company. A drop in morale will follow any cut to employee benefit plans.
When employees feel valued and supported, they’re more likely to be engaged and productive in their roles.
On the other hand, when employees are worried about their finances or health, they become distracted and less focused on their work — leading to a drop in productivity and lower-quality work.
Travel benefits are the best way to get your team back into the office. Since the pandemic, working from home has become commonplace — which is excellent and proven to support productivity. But if you want your team in the office, at least some of the time, you need to ensure their commute is comfortable, reliable, and stress-free.
By taking away any travel benefits (as well as any workplace perks, like ordering food and drink to the office), seeing more of your team in-person will prove challenging.
While cutting employee benefits packages is an easy way to save money, it’s essential to consider the potential impact on retention, morale, and productivity. By offering competitive benefits packages, you can attract and retain top talent, boost morale, and improve productivity in the long run.
With that in mind, there are many other areas where you can solve your budget headaches.
If your team members regularly travel for work, then there’s sure to be an opportunity to cut those travel costs. The days of employees jumping in a taxi, getting a receipt, and expensing it later are gone.
With Bolt Business, you can set spending limits (for individuals or teams) — that way, you know that your team’s travel will always be within budget. And your employees will have a reliable, comfortable, and safe journey.
Many companies are saving money with Bolt Business — including Clean Kitchen, who cut their monthly travel expenses by 52%!
Managing an office car park can come at a considerable cost — and if you’re company grows, you may need more space (well, if those new recruits drive to work).
By encouraging and supporting sustainable commuting habits, you can downsize your company car park. After all, 12 electric scooters can fit in a single car parking space.
Allow employees to work from home or have flexible work hours to reduce overhead costs on office space and utilities.
Contact vendors to negotiate better rates for office supplies and services.
Regularly review expenses to identify areas where costs can be reduced, such as unused subscriptions or unnecessary travel.
Discover the best benefits for employees in 31 employee benefits and work perks to increase retention.
Employee benefits packages are crucial to selling your company as a desirable workplace to potential recruits. Take them away, and your team has every right to feel aggrieved.
Cutting employee benefits isn’t an answer to your company’s financial issues. While it may seem like a quick fix and will cut your costs, it could cause more damage than good in the long term.
Employee satisfaction and retention depend on benefits such as healthcare, retirement plans, and paid time off. If you remove these benefits, employees will feel undervalued and search for better opportunities elsewhere, leaving you with increased turnover rates — which incur hiring and training expenses.
Meanwhile, committing to an employee benefits package can lead to a more productive and motivated workforce — ultimately benefiting the company’s profits.
By signing up with Bolt Business, you can significantly reduce your expenses and improve employee retention too!
Bolt Business will help cut costs by giving you greater control over your team’s travel, as you can set spending limits, track all orders, and monitor expenses. This way, businesses can ensure their employees use the most cost-effective routes without overspending.
Rather than cutting your employee benefits package, reduce your travel costs by creating a Bolt Business account.
