Small Business Guide to Employee Benefits in the UK
- Excellect
- 5 days ago
- 3 min read
How to support your team, attract talent, and build a positive workplace culture - whatever your budget
Running a small business means wearing a lot of hats. From managing clients and cashflow to supporting your team, there’s always something demanding attention.
One area that can easily be overlooked - but makes a huge difference - is employee benefits.
The good news? You don’t need to be a large corporate to offer meaningful perks.
In fact, many of today’s most effective benefits are affordable, flexible, and designed for SMEs. They can help you attract talent, reduce staff turnover, and show your people that you genuinely care.
What Are Employee Benefits?
Employee benefits are the additional perks, protections, and support that go beyond basic salary.
They might include:
Health and wellbeing cover (such as Private Medical Insurance or Health Cash Plans)
Protection benefits (like Life Assurance, Income Protection, or Critical Illness)
Lifestyle benefits (such as salary sacrifice, gym discounts, or EAPs)
These aren’t just “nice-to-haves” anymore - employees increasingly expect employers to offer benefits that protect their wellbeing and financial security.
Why Employee Benefits Matter for Small Businesses
1. Attracting and Retaining Talent
Good people have choices. Benefits make your offer more appealing, even if you can’t always compete on salary.
2. Improving Morale and Productivity
A workforce that feels supported performs better. When staff know their health and wellbeing are taken seriously, engagement rises.
3. Supporting Wellbeing and Reducing Absence
Access to healthcare, counselling, and prevention services reduces sickness absence - saving time and cost in the long run.
4. Building a Positive Company Culture
Benefits send a message: we look after our people.
That builds trust and loyalty - essential for small teams.
How Much Do Employee Benefits Cost?
Employee benefits can be surprisingly affordable, especially for small teams.
Indicative examples:
EAPs: Around £10–£15 per employee per year
Health Cash Plans: £5–£15 per employee per month
PMI: Varies depending on age and cover level
Group Life: Often under £150 per year per employee
Excellect works with all major UK insurers to compare costs and find solutions that fit any budget - fee-free and whole of market.
Core Benefits to Consider
1. Private Medical Insurance (PMI)
Fast access to private diagnosis and treatment when needed most.
2. Health Cash Plans
Help employees manage everyday healthcare costs like dental and optical.
3. Employee Assistance Programmes (EAPs)
Confidential counselling and mental health support available 24/7.
4. Group Protection
Financial peace of mind through Life, Income, or Critical Illness cover.
Start Simple - and Build Over Time
You don’t need to introduce everything at once.
Start with one or two benefits that have broad appeal (like a Health Cash Plan or EAP), then build your package gradually as your business grows.
A good broker can help you prioritise based on your goals, team size, and budget.
Reviewing and Communicating Your Benefits
Once in place, don’t let your benefits gather dust.
Regular reviews keep costs competitive and ensure your cover still fits your business needs.
And just as important - make sure employees know what’s available and how to use it.
Final Thoughts
For small businesses, the right benefits package can have a huge impact - helping you compete for talent, improve morale, and protect your team’s wellbeing.
And with whole-of-market, fee-free support available, it’s easier than ever to get started.
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