Building a business case for better employee benefits

Enhancing your employee benefits might seem like an additional expense at first glance, but the numbers tell a different story.

According to Gallup, businesses that prioritise wellbeing witness 21% higher productivity and 22% greater profitability.

These figures make a compelling argument for investing in your workforce.

If you need convincing further, research has also found that 69% of employees say a wide array of benefits would increase their loyalty, and 80% of people who are satisfied with their benefits report higher job satisfaction.

Interested in these kinds of gains? Want to build a business case for better employee benefits?  

This blog will guide you through demonstrating the value of such initiatives, helping you build a case that resonates with decision-makers.

How to position the value of better benefits and wellbeing strategies

When addressing leadership, focus on presenting the benefits not as an expense but as a tool for driving performance, improving retention and minimising risks.

By demonstrating how benefits and wellbeing strategies translate into measurable business outcomes, you can better bypass the concerns around additional costs.

Dan Grace, Director of International HR Consulting at IRIS Software Group, told us: “The conversation with leadership needs to start with business impact, not employee satisfaction.

“I lead with hard metrics that directly affect the bottom line: turnover costs, recruitment expenses, and productivity losses.

“When I can show that replacing one mid-level employee costs £15,000-£30,000, and that our current benefits package could prevent 20% of voluntary turnover, suddenly I have attention.

“Absence rates are also incredibly compelling metrics.

“I present data showing how comprehensive wellbeing programmes reduce sick days by 25-30%, and how mental health support decreases long-term absence.

“Leadership understands that every day of absence costs the business in temporary cover, reduced productivity and management time.”

Driving a mindset shift in leaders

What’s the biggest mindset shift leaders need to make?

Well, we found the biggest shift is moving from viewing benefits as a transactional expense to seeing them as a strategic investment.

Show leadership that benefits are something that directly impacts how people feel and perform.

Our Senior L&D Advisor, Vanessa Myatt, explains this further, stating: “Too often, benefits are lumped into the ‘cost centre’ bucket.

“But in reality, they’re one of your most powerful tools for building trust, loyalty, and wellbeing.

“When done right, benefits don’t just reward, but they should also reassure.

“They say to your team, ‘we’ve got you,’ and that kind of emotional security drives deeper engagement and longer tenure.

“The organisations that thrive are those that treat benefits as part of the employee experience ecosystem.

 “Because when your people feel supported, they give more, stay longer and speak highly of your business.

“That’s where performance and reputation really grow.”

Building your business case

The business case is clear.

When your people feel valued and supported, they’re more likely to stay, contribute and speak positively about your business.

You have a real opportunity to drive performance and build stronger teams by viewing employee benefits as a key component of your broader HR strategy.

If you found the above useful but want even more information, Dan and Vanessa recently joined us on a webinar to cover this topic in greater detail and offer even more advice.

This free, practical session covers how you can streamline your payroll and tailor your benefits to dramatically improve employee wellbeing, engagement and retention.

Webinar: Cut through the complexity, support your people better

Watch now