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Many business owners assume that higher pay is the best way to keep staff happy, but that’s not always true. While a fair salary matters, it’s not the only thing employees care about.
A recent survey found that 44% of employees would consider accepting a lower salary if the role offered attractive workplace benefits, highlighting just how important a strong benefits package has become. In fact, 76% of professionals now consider benefits to be a very important factor when evaluating job offers. This shift signals a clear message to employers: salary alone is no longer enough.
To attract and retain top talent, it’s essential to offer meaningful benefits that support your employees’ wellbeing, financial security, and long-term future. A strong employee benefits package — like a pension scheme, income protection, life cover, and health insurance — can be just as important. These benefits help your team feel supported and secure, which can lead to better job satisfaction, stronger loyalty, and a more productive workplace.
The Impact of Employee Benefits
Employee Retention
A solid benefits package is one of the best ways of retaining top talent. When your team feels supported and valued, they’re far more likely to stay loyal to your business. It also means you’ll spend less time and money on hiring and training new staff—and more time building a strong, experienced team that helps your business grow.
Attracting Talent
In today’s competitive job market, offering a strong benefits package can give your business a real edge. Job seekers don’t just look at salary—they compare the full package. By providing valuable benefits, you make your company more appealing to top talent who might otherwise be drawn to bigger firms or international opportunities.
Enhanced Productivity
When your employees feel healthy, financially secure, and genuinely supported, they’re more focused and motivated at work. A comprehensive benefits package helps reduce stress and distractions, creating a more positive workplace and leading to better performance, engagement, and innovation across your team.
Positive Company Culture
A well-rounded benefit package helps create a positive and supportive company culture. It sends a clear message that you care about your employees’ well-being and are willing to invest in their future. This builds trust, strengthens loyalty, and encourages a workplace where employees feel valued, engaged, and motivated to do their best work together.
How to Build a Comprehensive Employee Benefits Strategy
To truly motivate and retain employees, it is essential to offer a comprehensive benefit package that addresses their diverse needs and concerns. Here are some key benefits that can make a significant difference:
Group Income Protection
Group Income Protection is a type of insurance policy that employers in Ireland can offer to their staff. It provides a replacement income if an employee is unable to work due to illness or injury for an extended period of time.
Who it’s for: Offered to all or a defined group of employees (e.g. everyone, or just management).
How it’s set up: The employer sets up a group policy that covers multiple employees under one plan.
Tax treatment: Premiums are paid by the employer and usually tax-deductible as a business expense. Benefits are paid to the employer and then passed to the employee via payroll (taxed as income).
Key advantage: Simple way to provide income protection to multiple employees in one policy, cost-effective for covering large groups.
Key Features of Group Income Protection
Depending on the provider you choose, your Group Income Protection policy can include benefits like:
- Minimum Membership and Premium
Group Income Protection can start with as few as three members, with a minimum annual premium of €1,000, making it accessible even for smaller businesses. - Flexible Cover Options
Employers can choose from a range of low-cost options and tailor benefits to suit different groups of employees. This flexibility is ideal for both growing companies and established firms looking to offer tiered benefits. - Cover Up to Age 68
As people retire later, cover is available up to age 68, aligning with the state retirement age in Ireland. - Early Intervention & Claims Support
Early support makes a real difference. Aviva, for example, offers rehabilitation services as early as 4 weeks into an employee’s absence, helping them return to work faster. Their team works proactively, often before claims even begin, to support employee recovery.
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Executive Income Protection
Executive Income Protection is a financial safeguard that allows employers to guarantee their key employees and company directors’ income security in the event of incapacity to work due to illness or injury for a specific period.
Who it’s for: Designed for key individuals, such as directors or high-earning employees.
How it’s set up: A customised policy arranged for one person, paid for by the company.
Tax treatment: Premiums are typically tax-deductible for the company. Benefits are paid directly to the business, which then pays the employee through payroll (taxed as income).
Key advantage: You can also choose to include cover for the employer’s contributions to the employee’s approved pension scheme.
Group Life Cover
Group Life Cover is a type of employee benefit that provides a lump sum payment to an employee’s family or nominated beneficiary if they die while employed by your company.
Serious illness cover, which pays a lump sum if an employee is diagnosed with a specified illness listed in the policy, can be added to a group life cover plan—providing additional financial support for employees during challenging times.
Who it’s for: Employees of a company, often offered as part of a wider employee benefits package. It can apply to all staff or a specific group (e.g. management team).
How it’s set up: The employer takes out a group life insurance policy that covers employees under one plan. A lump sum is paid to the employee’s nominated beneficiary if they die while employed.
Tax treatment: Premiums are usually tax-deductible as a business expense. The benefit is not considered a Benefit-in-Kind (BIK) for employees.
Key advantage: Provides peace of mind to employees and their families.
Key Features of Group Life Cover
Depending on the provider you choose, your Group Life Cover policy can include benefits like:
- Lump Sum Payment: A once-off payment can be made to the employee’s family. This lump sum is typically a multiple of the employee’s salary or a fixed amount agreed upon in the policy.
- Spouse’s Pension Option: Instead of or in addition to a lump sum, the policy can provide a regular monthly income to the deceased employee’s spouse. This payment can be a fixed amount or set to increase each year in line with inflation, helping to replace part of the household’s lost income.
- Children’s Pension Option: This provides a monthly income to support the deceased’s children until they reach age 18—or 21 if still in full-time education. Like the spouse’s pension, it can be fixed or increase annually with inflation.
- Customisable Plans: Employers have the flexibility to tailor the policy to suit their needs. You can decide on eligibility criteria, the level of cover, and how benefits are paid, ensuring the plan fits your team and your budget.
Key Person Insurance
Key Person Insurance is essential for any business that would struggle to operate without a key employee or director. It provides life insurance and/or serious illness cover taken out by the company to protect against the financial impact of losing a critical team member. This cover is suitable for businesses of all sizes that depend on individuals whose absence could significantly affect day-to-day operations or revenue.
Who it’s for: Company director, founder, partner, or someone with specialist skills, who dies or becomes seriously ill.
How it’s set up: The company takes out a life insurance or serious illness policy on the key employee. The business pays the premiums and is also the beneficiary of the policy. If the key person dies or suffers a covered serious illness, the policy pays out a lump sum to the business.
Tax treatment: Key person insurance premiums are generally not deductible for Corporation Tax, but Revenue allows deductions in certain cases if specific conditions are met.
Key advantage: The payout can help cover the cost of hiring a replacement, training new staff, repaying business loans, or simply keeping the business afloat during a difficult transition period. It’s a smart risk-management tool that provides peace of mind to business owners, investors, and partners.
Although Key Person Insurance is often aimed at protecting directors, business owners, or other essential staff, in some situations, personal life insurance cover might be more suitable depending on the company’s structure and goals. Choosing the right type of cover depends on who needs protection and why.
Read more about this in our article: Key Person Insurance vs. Life Insurance: Which is Right for Your Business?
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Group Pension Scheme
Who it’s for: Membership in your company pension scheme is often open to all employees. However, you have the option to limit access to those who’ve successfully completed their probation or a minimum period of service. This allows you to manage costs more effectively and reward employees who commit to staying with your business.
How it’s set up: The employer sets up a company pension scheme, often a PRSA (Personal Retirement Savings Account) or an Occupational Pension. Both the employer and employee can contribute.
Tax treatment: Employer contributions are tax-deductible, and employee contributions receive income tax relief.
Key advantage: Helps employees build a retirement fund and shows your company is invested in their long-term future. A major factor in retaining experienced staff.
Auto Enrolment Considerations
Expected to launch in January 2026, Auto-Enrolment is a pension scheme that will automatically enrol employees who meet certain criteria. It will apply to employees aged between 23 and 60 who earn €20,000 or more per year across all their jobs. The scheme is designed to be simple and accessible, particularly benefiting lower- to middle-income workers through automatic contributions and government top-ups.
While Auto-Enrolment offers a straightforward way to boost retirement savings, private pensions—such as Personal Retirement Savings Account (PRSA) or Executive Pension Plans—can offer greater flexibility and more generous tax relief, making them ideal for higher earners.
For business owners, offering private schemes is a great way to attract and retain top talent, while setting your business apart from competitors. It shows long-term commitment to your employees’ financial wellbeing and strengthens your overall benefits package.
Read our article to better understand the differences and why a private pension scheme might be a better fit for your business.
Additionally, we’ve put together a section of Key Questions Answered for Business Owners to help guide your decision-making.
Health Insurance
With ongoing challenges in the public health system—like long waiting lists, overcrowded hospitals, and staff shortages—accessing timely care can be difficult. Group health insurance helps bridge this gap by giving your employees access to a wide range of private healthcare services, including GP visits, specialist consultations, hospital stays, and more.
It also shows your team that you value their wellbeing, helping to reduce absenteeism and making your company more attractive to potential hires.
Who it’s for: Employees and sometimes their families, depending on the plan.
How it’s set up: We compare various providers to help you choose the right corporate health insurance for your business, then set up a group policy tailored to your team’s needs.
Tax treatment: Premiums are usually treated as a Benefit-in-Kind (BIK) and taxed through payroll as part of the employee’s income. However, employers can claim the cost as a business expense.
Key advantage: Offers quicker access to healthcare, boosts employee wellbeing, reduces absenteeism, and enhances recruitment appeal.
How to Implement an Effective Benefit Package
- Assess employee needs: Use surveys or feedback sessions to understand which benefits matter most to your team.
- Communicate clearly: Make sure employees know what’s available and how to use their benefits.
- Review and adapt: Regularly update your package to reflect changes in your team’s needs and stay competitive in the market.
- Get expert support: Contact us to help you build the best employee benefits package tailored to your business and your team.
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While money is a key factor in employee motivation, it’s not the only one. A comprehensive benefits package—featuring executive income protection, life insurance, group pension schemes, and health insurance—can significantly enhance employee satisfaction, retention, and performance.
Investing in the wellbeing and financial security of your team not only strengthens employee loyalty but also supports the long-term success and resilience of your business. As a business owner in Ireland, adopting a strategic approach to employee benefits can set your organisation apart in a competitive market.
At True Wealth, we offer clear, practical financial solutions designed to help your company grow and succeed with confidence.
Our experienced financial advisors are here to help you and your business create a solid financial plan tailored to your goals. Whether it’s managing taxes, planning for retirement, or optimising your investments, we provide expert advice to guide you every step of the way. Secure your financial future with a personalised strategy designed for success.
We are experts in personal and business protection, savings and investments, pension tracing, personal and business owner financial planning, mortgages, and wealth management and extraction.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
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