What Are Employer Benefits Packages & How to Offer Them?

An employer benefits package includes benefits and perks offered beyond salary, such as health insurance, paid leave, and pensions.

But why do benefits packages matter? 

And how can you design one that works for both your employees and your business?

Read on to explore their importance, the key benefits to include, and how to build an employer benefits package that fits your needs.

Further Reading

• From pensions to private medical insurance, discover the popular benefits to offer your UK employees in our Employee Benefits UK Guide.

• Have employees in Ireland? Our Employee Benefits Ireland Guide highlights the top benefits you should offer them.  

What Are Employer Benefits Packages?

An employer benefits package is a set of non-wage compensations that supplement an employee’s salary. These benefits can be tailored based on job roles, company policies, and industry standards to support employee well-being.

As an employer, you can offer:

• Fixed benefits package: A standard set of benefits provided to all employees.

• Flexible benefits package: A customizable policy that allows employees to choose the benefits that best suit their needs. 

To determine the right approach, consider your company size, budget, and workforce preferences. (We discuss this in detail in the section on creating a benefit package.)

A well-rounded benefits package should provide essential benefits while allowing room for customization where possible.

Why Offer Employer Benefits Packages?

An employee benefits package isn’t just ‘good to have’ — it’s a strategic investment in your business. Here’s why:

1. Attract Top Talent

Most job seekers look beyond salary when evaluating job offers. 

That’s why a competitive benefits package — including health coverage, pension plans, and flexible work options — can give your company an edge in a crowded hiring market.  

A 2024 study found that 91% of employees would consider changing jobs to gain access to the financial benefits they need. 

What’s more?

A strong benefits offering also enhances your employer brand, positioning your company as “the place to work” for top talent. 

Employers that prioritise employee well-being often see higher application rates, stronger referrals, and overall lower recruitment costs.

2. Improve Employee Retention

Did you know? 70% of workers are more likely to stay with an employer that offers a well-structured benefits package.

Providing perks like career development opportunities, financial well-being incentives, and work-life balance policies boosts employee retention. 

3. Lower Costs

According to Gallup, replacing an employee can cost one and a half to two times their annual salary. These costs go beyond recruitment and onboarding; turnover can disrupt team morale, reduce productivity, and even weaken client relationships.

The good news?

A well-structured benefits package helps prevent these costly disruptions. 

As mentioned earlier, offering competitive benefits can improve retention, engagement, and productivity — all of which directly impact your bottom line. 

Beyond employee attrition, there is another cost that employee benefits help to bring down — your tax liability.

Benefits like pension contributions, health insurance, and salary sacrifice schemes offer tax efficiencies that reduce overall employment costs. 

For example, in Ireland, employer pension contributions are tax-deductible, reducing corporate tax liability by 12.5%. In the UK, they are a deductible business expense, potentially reducing corporate tax liability by up to 25%, depending on the tax rate.

4. Boost Engagement & Productivity

Employees who feel supported - whether through career growth programs, wellness initiatives, or flexible work arrangements - are more engaged and motivated.

This results in higher productivity and better business outcomes.

A Gallup study found that companies with high employee engagement had 23% higher profits, showing how an engaged workforce can yield better business results.

Which Benefits Should You Include in Your Employer Benefits Package?

Generally, employee benefits fall into two categories:

• Mandatory benefits (Statutory Benefits): Legally required benefits that vary by country, such as paid annual leave, occupational pensions, statutory sick pay, etc. 

• Supplementary benefits and perks: Additional offerings that enhance employee satisfaction, such as private health insurance, life assurance, stock options, etc.

Discover how top European startups and scaleups structure their benefits in The State of Benefits in European Tech 2024 report.

A strong benefits package typically combines both mandatory and supplementary benefits, covering these key categories:

1. Health and Well-being Benefits

Offering health and well-being benefit packages helps your employees stay physically and mentally healthy — ensuring a happier, more productive workforce. Some common employee benefits are:

• Private health insurance

• Health cash plans

• Dental and eye insurance

• Employee Assistance Programme (EAPs)

2. Financial Benefits

Monetary benefits give your employees the financial security and motivation to stay with your company. Popular financial employee benefits include:

• Workplace pension schemes

• Employee share schemes and stock options

• Paid time off

• Parental leave 

• Salary sacrifice scheme

• Group income protection

3. Professional and Personal Development Benefits

Career growth opportunities help employees expand their skills and progress within the company. Common employee benefits include:

• Career counselling and future planning

• Financial support for courses and certifications

• Access to industry events and networking opportunities

• Therapy and personal counselling

4. Work-Life Balance Benefits

Work-life balance policies help employees manage their professional and personal responsibilities, reducing stress and increasing job satisfaction. Popular work-life benefits include:

• Flexible work hours

• Remote/hybrid work options

• Annual leave

• Extra paid leave for life events

• Mental health days

5. Additional Perks

While optional, offering extra employee perks can create a more enjoyable and engaging work environment. These perks boost employee morale and job satisfaction. 

Some examples include:

• Free snacks, coffee bars, and game rooms

• Discounts on company products and services

• Gym memberships and wellness programs

• Pet-friendly offices

• Company-sponsored retreats and vacations

How to Create an Attractive Employer Benefits Package for Your Team

Follow these five steps to design a workplace benefits package that meets both business needs and employee expectations:

1. Assess the costs: Employee benefits, like health insurance, annual leave, stock options, and wellness programs, come with costs. Review each benefit’s expense and balance affordability with value to ensure the package remains sustainable for your business while being valuable for employees.

1. Communicate the value: A great benefits package only works if employees understand and use it. Regularly inform your employees about their benefits through onboarding sessions, handbooks, and digital portals to ensure they make the most of what’s available.

1. Gather employee feedback: Not all benefits hold the same value for every workforce. Conduct employee surveys to determine which benefits are most valued and which may be underutilised. This helps you optimise spending and focus on benefits that truly improve job satisfaction.

1. Choose between fixed and flexible employee benefits: Flexible benefits empower employees to choose perks that suit their needs, increasing satisfaction and engagement. However, fixed workplace benefits take a one-size-fits-all approach, which can lead to wasted resources and lower employee appreciation.  

1. Use technology to streamline benefits management: An employee benefits platform can automatically enrol each eligible employee, reduce administrative errors, and make benefits easier to manage — improving efficiency for both HR/finance teams and employees. 

Looking for an all-in-one platform to offer, manage, and scale employee benefits in Ireland and the UK? 

Meet Kota.

Simplify Employee Benefits Management With Kota

Kota is a modern employee benefits platform that makes it easy to set up a compliant, cost-efficient benefits package while reducing admin work. 

With a seamless onboarding process, trusted provider coverage, HRIS sync, and built-in compliance for Ireland and the UK, Kota ensures your team gets the benefits they need — without the hassle.

With Kota, you can offer:

• Health Insurance: Enrol Irish and UK employees in comprehensive health plans from Irish Life Health and Vitality. Easily set up, scale, and provide employees with flexibility over their coverage.

• Occupational Pensions: Enrol each eligible employee in a compliant occupational pension scheme from Irish Life (Ireland) and Smart Pension (UK). Offer matched contributions and give employees full control over their pension plans.

• Life Assurance (Ireland only): Auto-enroll employees in life assurance schemes through Irish Life, with flexible coverage options to meet their needs.

Plus, with Kota’s Bring Your Own Benefit feature, you can easily add additional benefits — like well-being benefit programs or transport allowances — alongside core offerings, all in one platform.

Join Kota to give your team the support and flexibility they deserve.

4 FAQs on Employer Benefits Packages

We’ll answer some questions about employer benefits packages:

1. What Factors Affect the Cost of Employer Benefits Packages?

Several factors impact the cost of your benefits package:

• Company size: Larger businesses can negotiate better rates with employee benefit providers, lowering per-employee costs.

• Location: Companies in high-cost-of-living areas may need to offer additional benefits, such as housing allowances and transportation stipends, to stay competitive.

• Customisation: Allowing employees to personalise their benefits can increase administrative complexity and costs. Fortunately, Kota offers affordable pricing and helps cut costs by streamlining benefits management. Discover how much you can save with Kota. 

• Benefits offered: Comprehensive benefits like private health insurance and enhanced pension contributions can increase costs, but they also add significant value for employees and improve retention. 

2. How to Measure the ROI of Your Employer Benefits Package?

To measure the return on investment (ROI) of your employee benefits package, monitor these four key metrics:

• Employee engagement: High participation in an employee benefits scheme or other arrangements shows your employees find them valuable.

• Healthcare cost savings: A strong benefits package can help reduce medical claims and insurance costs.

• Absenteeism and turnover rates: Fewer sick days and lower turnover suggest that your employee benefit schemes positively impact employee well-being and job satisfaction.

• Productivity and performance: A workforce supported by a strong benefits package is more engaged and drives better business outcomes.

3. Can You Offer Different Benefits Packages to Different Employees?

Yes! Employees have different priorities based on their life stage and personal situation. As a result, companies offer customisable or flexible benefits to meet the needs of their workforce. 

For example:

• Younger employees may value private health insurance and flexible work options.

• Older employees may prioritise pension contributions and income protection schemes.

4. How Often Should You Review and Update Your Employee Benefits Package?

A full package review every 2–3 years helps maintain competitiveness, control costs, and ensure compliance. However, you may need annual or semi-annual updates based on:

• Rising healthcare costs

• Shifting workforce demographics

• Financial constraints

• Competitor benchmarking  

Regularly refining your benefits package ensures it stays relevant and valuable to your employees.

Support Your Workforce with Comprehensive Benefits 

A well-balanced mix of financial, work-life, and health benefits keeps your employees motivated, engaged, and committed — driving long-term business success.

And for effortless benefits management, use Kota. 

Our all-in-one employee benefits platform streamlines employee access to health, retirement plans, and life assurance benefits.

Join Kota today and simplify benefits management for your UK and Irish teams.