Setting up multiple companies to separate business interests can seem very straight forward. There are however important considerations. We explore the implications of owning too many companies.
The New Way to Reward Employees: Benefits That Really Matter
22 January 2026
Accounting & Compliance, Payroll, People, Structuring a Business
Gone are the days when a pay check alone kept employees loyal.
Today, staff want more such as flexibility, wellbeing, and meaningful perks that reflect their values and lifestyle.
For small business owners and company directors, building a benefits package that motivates and retains your team is crucial and it can be done in a cost-effective, tax-efficient way.
Here’s how modern businesses are rewarding their employees beyond salary.
Pensions: Investing in the Future
Pensions remain one of the most valued benefits for employees.
While employers must contribute a minimum of 3% and employees 5%, offering more than the minimum can make a big difference.
Example: Increasing your contribution from 3% to 5% for key team members not only boosts their long-term financial security but signals that your business cares about their future.
This kind of investment can significantly improve retention, particularly for ambitious staff planning their career growth.
Company Cars: Low-Tax, High-Impact Options
Traditional company cars can carry high tax bills, but electric and hybrid vehicles now benefit from very low Benefits-in-Kind (BIK) rates.
Example: Offering an electric company car to a rising manager provides a tangible perk, potentially reduces your corporation tax bill, and demonstrates your business’s commitment to sustainability.
For directors and key staff, this can be a highly attractive and practical addition to their package.
Life Cover: Peace of Mind
Death-in-service benefits are a non-taxable way to support employees with dependants.
Premiums are tax-deductible for the company, and any payout is free from tax for the next of kin.
Example: Providing life cover equivalent to 3x salary for all employees can make staff feel secure while showing genuine care for their families.
It’s a straightforward perk that costs relatively little but can have a big impact on loyalty.
Health and Wellness Benefits
Health and wellbeing are increasingly central to employee satisfaction. Packages often include:
- Online GP consultations
- Dental and optical care
- Physiotherapy or counselling support
- Family coverage
Example
Offering a corporate health plan that includes your team and their children demonstrates a commitment to employee welfare.
Even small initiatives like gym memberships, wellness workshops, or mental health support can boost engagement and productivity.
Creative Perks: Experiences and Flexibility
Employees value flexibility and experiences as much as cash. Innovative perks can include:
- Flexible working arrangements such as hybrid, flexi-time, or compressed hours
- Access to company-owned assets like using a company-owned Airbnb for a week per year
- Trivial benefits team lunches, vouchers, or gifts under £50
- Learning and development allowances such as support for courses, certifications, or conferences
Example
Offering a small personal development budget shows staff that you support their growth and career aspirations.
Combined with flexibility, these perks can make your business a preferred employer.
Why a Thoughtful Benefits Package Matters
Retaining key employees isn’t just about avoiding recruitment costs it preserves knowledge, maintains productivity, and drives growth.
A diverse and carefully considered benefits package:
- Shows employees they are valued
- Supports wellbeing and work-life balance
- Motivates engagement and productivity
- Helps your business stand out in a competitive talent market
How We Can Help
At Friend & Grant, we help business owners design benefits packages that work for both employees and the business.
A motivated and engaged team is critical to growing and sustaining your business.
We can help you:
- Model pension contributions and life cover schemes
- Select tax-efficient perks, including electric company cars
- Structure health, wellness, and flexible benefits
- Incorporate creative perks and learning opportunities
Get in touch
Call us on 01634 731390 to discuss your options and design a rewards strategy that works for your business and your team.
Our Services
To read more about what we do and who we work with please see our related pages below:
Blogs related to Retaining and Rewarding Employees:
Take a look at our other blogs on the topic of employee rewards:
Why Employees Really Stay at a Firm: Insights from Leading Thinkers
EMI Scheme Expansion in 2026: A Big Opportunity for Scale-Ups
The content in this blog is correct as of 18th September 2024. See terms and conditions.
