5 Creative Employee Benefits to Attract and Retain Top Talent in 2024

Attracting and retaining the right people has become one of the biggest challenges for small businesses. With larger companies offering attractive salaries and perks, it’s easy to feel like you’re being outmatched. But here’s the good news — it’s not all about pay.

According to research by ManpowerGroup, half of UK businesses are now offering non-financial employee benefits like training and development opportunities to stand out in a crowded job market. While big salary increases might be off the table for many small businesses, offering a thoughtful mix of benefits can be just as (if not more) effective.

This shift isn’t just about cost-cutting; it’s about building a workplace people want to stay in. And, with so much competition for skilled workers, a creative benefits package could be your golden ticket.

Here are five of the most popular (and effective) non-financial employee benefits you can offer to attract, hire, and retain the best people for your team.

1. Training, Development & Mentoring

Gone are the days when employees expected to stay in the same role for 20 years. Modern workers want growth. Offering training, mentoring, and development opportunities can be a game-changer.

It’s not just beneficial for employees — it’s a win for you too. Upskilling your team can reduce skills gaps, improve efficiency, and lower recruitment costs. If your business struggles to attract candidates with certain skills, offering to train them on the job could be the answer.

How you can do it:

• Offer access to online learning platforms like LinkedIn Learning or Coursera.
• Run in-house training sessions on essential skills like leadership, software, or technical know-how.
• Create a mentoring programme where senior staff support new recruits.

Why it works:
People want to work where they feel valued. Offering training and mentoring shows employees you’re invested in their growth, not just their output. This makes it more likely they’ll stay and grow with you.

2. Flexible Work Schedules

Flexibility is no longer a “nice to have” — it’s an expectation. The traditional 9-to-5 is fading fast, especially as more people seek work-life balance. Flexible schedules are one of the most in-demand perks for job seekers today.

Instead of expecting everyone to work the same hours, give employees some control over their day. This could be as simple as letting them start earlier or finish later to suit family commitments.

How you can do it:

• Introduce “core hours” (e.g., 10am-3pm) when everyone must be online but allow flexibility outside of that.
• Allow compressed workweeks (e.g., working 40 hours over four days instead of five).
• Let people manage their own breaks as long as the work gets done.

Why it works:
Flexibility makes people’s lives easier. When employees can juggle work around personal commitments, they’re more engaged and less likely to look elsewhere for a job that offers better balance.

3. Remote & Hybrid Working

Once a pandemic necessity, remote and hybrid working has become a permanent fixture in the working world. And for good reason — many people discovered they prefer it.

If your company can offer remote or hybrid roles, you’ll attract a wider pool of candidates, especially parents, carers, and those who live further afield. Even offering just one day of remote working per week can make your roles more attractive.

How you can do it:

• Offer hybrid working where employees work a mix of in-office and remote days.
• Allow fully remote roles where possible.
• Provide a small “home working allowance” for desks, chairs, or tech equipment.

Why it works:
Giving people more control over where they work shows that you trust them to do the job, no matter where they are. Plus, you’ll be able to attract talent from a larger geographical area, opening up your options.

4. Extra Holidays & Paid Time Off (PTO)

Most employees get the standard 28 days of annual leave (including bank holidays) — but what if you offered a little more? Extra paid time off (PTO) is one of the most cost-effective employee benefits you can provide. It’s a clear way to show employees that you value their mental health and wellbeing.

Offering extra holidays may sound costly, but it can actually reduce burnout and improve employee retention, ultimately saving you money in the long term.

How you can do it:

• Give everyone their birthday off as an extra day of leave.
• Introduce a paid “wellbeing day” once a year where staff can recharge.
• Offer extra leave as a reward for long service milestones (e.g., an extra day off after 2, 5, or 10 years).

Why it works:
Time off is a powerful motivator. People are more likely to stay with companies that support their need for rest, recovery, and family time. Plus, it’s cheaper than offering pay rises to retain staff.

5. Lower Entry Barriers & Skills Investment

Instead of waiting for the “perfect candidate” with all the right experience, why not hire for potential? This means you bring people in with the right attitude, then invest in their skills.

This approach works well for hard-to-fill roles where demand outweighs supply. Instead of competing for experienced hires, you bring in people with the right mindset and train them up. Not only does it expand your candidate pool, but it also builds loyalty.

How you can do it:

• Offer on-the-job training to fill skills gaps.
• Look for transferable skills instead of exact experience (e.g., customer service in a shop vs. customer support in an office).
• Create “entry-level pathways” for people changing careers.

Why it works:
With so much competition for talent, hiring based on potential can give you access to a wider range of candidates. It also reduces the time it takes to fill roles and helps you grow skills from within.

Should You Just Increase Salaries Instead?

If it’s possible to raise salaries, it’s certainly worth considering. But it’s not always the best option. Salary increases come with higher expectations, and you may find that you need to increase productivity to offset the cost.

For small businesses, offering creative benefits like hybrid working or flexible hours can have just as much impact. It’s also more sustainable in the long term.

The trick is to offer a mix. By creating a well-rounded benefits package that includes financial and non-financial employee benefits, you’ll stand out from the competition. And remember, it’s not just about recruiting new talent — it’s about keeping the great employees you already have.

Ready to Create a Winning Employee Benefits Package?

Don’t guess what your employees want — ask them! Understanding what your team values most can save you money and create a benefits package that truly works.

Ask your team to complete a Employee Benefits Survey to get direct feedback from your employees. You’ll be able to design a package that keeps your team happier, more engaged, and less likely to leave.

This approach ensures you’re offering perks that matter, rather than wasting money on benefits no one uses. It’s a smarter way to build loyalty and retain top talent.