If you can’t measure every employee benefit you offer and how it impacts your bottom line, you’re not doing it right.
Yes, perks are primarily there to support your employees. They keep your people happy and improve your work culture.
But you’re running a business, not a charity. Any perks and benefits you offer must also have a positive, measurable impact on your metrics, whether that’s performance, retention or revenue.
You need a strategy to measure whether your perks are keeping people around.
This is how it works.
What you should be measuring
Before you spend anything, you need a baseline.
Here are the four metrics worth tracking.
- Employee Net Promoter Score, or eNPS, is a single quarterly survey question: how likely are your employees to recommend you as an employer on a scale of zero to ten?
The result runs from minus 100 to plus 100. It’s the clearest single indicator of how engaged your team actually is and it takes about two minutes to run.
- Employee Satisfaction Score, or ESAT, goes a layer deeper. Short pulse surveys every three to six months give you a picture of how satisfied people are with their role and the workplace overall.
Used alongside eNPS, you start to build a proper picture.
- Absenteeism rate is worth tracking monthly as a percentage of total working days. A sustained drop tells you that your wellbeing perks are doing something real. A stubborn figure tells you they’re not.
- Retention rate should be tracked annually and ideally broken down by team or role. If you’re losing people in one particular area, that’s where to look first.
The baseline rule is simple: survey your employees before you spend anything. Set a target for each perk you introduce.
Measure again at three months and six months. If nothing has moved, stop spending on it.
The perks that move those numbers
Some perks have solid evidence behind them. Others are genuinely popular but cost a lot.
Here’s what we see working in small businesses:
Flexible and hybrid working is the strongest single driver of eNPS improvement across industries.
It costs nothing to introduce beyond the time it takes to build a clear policy. Without the policy, it creates inconsistency and resentment, so don’t skip that part.
Enhanced leave and mental health days are directly tied to absenteeism reduction. The perceived value to employees is high relative to the cost to you. It’s one of the better returns on your people budget.
Learning and development measurably improves satisfaction scores, particularly for employees under 35. It also ties to performance, so the return isn’t just about keeping people, it’s about getting more from them while they’re with you.
Financial wellbeing support, whether that’s salary advance schemes or access to financial coaching, reduces financial stress.
Financial stress is one of the leading drivers of both absenteeism and disengagement and, in the current cost of living environment, it’s more relevant than it’s ever been.
One thing to check before you introduce anything: any non-cash perk needs to be assessed for HMRC liability before it goes live. Private healthcare, gym memberships and similar benefits are classed as benefits in kind and must be valued and reported via P11D.
What to stop doing
A few things we see regularly that don’t work:
- Adding perks because a competitor has them, or because it felt like a good idea at the time, without any baseline measurement or target attached to it.
- A one-size-fits-all approach. What works for one team or age group may fall flat for another. A free gym membership means nothing to someone who has never set foot in a gym.
- Perks that employees don’t actually know about. Poor communication around benefits is more common than you’d think and it means that you’re spending money on something that isn’t landing because nobody knows it exists.
- Anything you can’t measure within six months. If you can’t define what success looks like, you can’t know if it’s working.
For the best ROI, seek professional help
An independent HR consultant can help to assess your business as it currently stands, then build a perks and benefits strategy around real HR metrics.
Every pound spent will be tied to a measurable outcome in wellbeing, performance or retention. That means fewer guesses and a much better chance that your investment actually keeps the people you want to keep.
If you’re not sure whether your current benefits offering is doing anything useful, get in touch and we can help you to find out.