Implement staff incentive schemes

Perks and the options

Perks are generally a good method of attracting and retaining employees as they are not related to productivity. Perks can encourage staff attachment to the business.

The options

There are a wide range of perks, including:

• occupational pensions
• more holidays than the statutory minimum - see our guide on how to know how much holiday to give your staff
• gifts, eg on birthdays
• health benefits, eg health insurance/assessments
• flexible working - see our guide on flexible working - the law and best practice or use our interactive tool to investigate what kind of flexible working will best suit your employees and you
• subsidised staff canteens, tea/coffee-making facilities or goods/services
• loans, eg season tickets
• social events, eg Christmas parties and work outings
• membership of social clubs
• extra training, which goes beyond skills needed for the job

Tax

Most perks with an equivalent cash value have tax implications. See our section on expenses and benefits for employers.

Other considerations

You may want to consider the following points when providing perks:

• they must be perceived as worthwhile
• they must not cost the employer more to provide than the employee could get them for
• they must be worth more to the employee than any tax they will pay on them

Make sure that the perks you choose are relevant to both your business and staff. Be careful when removing or changing any of the perks you offer. If they are part of your employees' contracts you will need to gain their consent. If you do not get consent the employee may be entitled to sue for breach of contract or resign and claim constructive dismissal. See our guide on how to change an employee's terms of employment.

Subjects covered in this guide

• Introduction
• The benefits of staff incentive schemes
• Incentive schemes and the options
• Perks and the options
• Setting up an incentive scheme for employees
• Ensuring the incentive scheme is successful
• Here's how a staff incentive scheme improved our business

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