Employment costs are likely to be your highest single item of expenditure, accounting for about a third of your practice running costs. How you structure the way that you pay and reward your employees will reflect what’s important to you (your values) and make your employees feel that the job is worth doing. You need to be able to explain it to your employees so that they understand what is expected from them and the opportunities that might allow them to progress. Being fair and transparent will help you establish their trust.
This advice provides an overview of pay structures that you could consider alongside benefits that you might offer.
Key learning points
This advice will help you to understand how pay and benefits can help you attract, keep and influence staff. It explains:
- The common approaches to structuring pay
- How pay progression can help you encourage and reward employees, with examples of the different approaches that you might adopt
- The legal requirements for equal pay and the National Minimum Wage and Living Wage
- Examples of employee benefits – enhanced pensions, increased holidays and time off, and healthcare benefits
- How salary sacrifice can be used with benefits that attract preferential tax treatment.