Are your employee benefits helping your business as much as they could? Many SMEs want to get more from their benefits, but do not always have a clear strategy for doing so.

According to the latest research from Everywhen, conducted by YouGov in conjunction with the CIPD (Chartered Institute of Personnel and Development), more than a fifth (22%) of SMEs have absolutely no objectives for their employee benefits, while only 14% have a formal financial wellbeing strategy.

The good news is that a more practical approach doesn’t have to be complicated.

Here we bring you six simple steps to building a benefits strategy that works for both your employees and your business.

At-a-glance

• Focus on 2-3 clear goals

• Reflect real employee needs

• Track success

• Communicate the benefits

• Make the most of existing benefits

• Write your strategy down and review it regularly

Deciding what you most need your benefits to help with is a good place to start.

For some SMEs, the priority will be keeping skilled workers, while for others, it may be supporting wellbeing or reducing absence.

You do not need a long list of goals. In most cases, two or three clear goals will do. Once you know what you want your benefits to achieve, it becomes easier to see what is working and what needs to change.

Ask yourself the critical question - are we spending money where it actually makes a difference?

An effective strategy needs to be realistic. For most SMEs, this means focusing on a smaller number of benefits that are affordable and likely to make the biggest difference.

It's sensible to take a step back when trying to work out what benefits to offer, and think about what's likely to matter most to your workforce.

A young demographic, for example, might care more about practical wellbeing support, like dental care under a cash plan or mental health support. A slightly older workforce, meanwhile, might value financial guidance or flexible working arrangements to accommodate childcare.

This does not need to be a big piece of work. Talk to employees, ask managers what they're hearing and informally sound out employees to make sure your benefits reflect their needs.

Try to track 2 or 3 simple metrics such as:

• Take-up rates (e.g. percentage using an EAP or cash plan)

• Employee feedback (can you run a quick email survey?)

• Absence or retention trends (even basic)

And then make sure you review at least annually, or ideally every 6 months.

In many businesses, existing support is underused because employees do not fully understand it or because it no longer matches their priorities.

Clear communication is just as important as the benefits themselves. Even the most valuable support will have limited impact if employees do not understand or remember it.

Remember to keep explanations simple without drifting into any insurance jargon and keep reminding your team, rather than just telling them when they join the company.

Many SMEs are already supporting financial wellbeing through the benefits they offer, even if they do not have a formal strategy in place.

With money worries often affecting wellbeing and performance at work, support such as flexible working, health support and a competitive pension scheme can help employees to feel more secure. 

Financial wellbeing does not have to be built from scratch. A better starting point is to look at how your existing benefits already help and where there may be gaps.

A benefits strategy does not need to be long or complicated. For many SMEs, one page is enough. It can simply explain what your benefits are there to do, who they are meant to support and when you plan to review them.

Putting it in writing can help make your benefits feel more joined up and purposeful.

It is worth remembering that you don't have to manage all of this on your own. You can feel more confident about the decisions you make by talking to an external benefits adviser to check that you're on the right path.

A practical benefits strategy does not need to be perfect. What matters is having a clear starting point. For most SMEs, the best approach is also the simplest: focus on what matters most, keep it relevant to your workforce and make sure your support is realistic, useful and easy to understand.