Is it time for low-paid industries to embrace employee benefits?
Summary
Gethin Nadin (Chief Innovation Officer, Benefex) argues that retail, hospitality and healthcare — long guilty of treating benefits as a luxury — can no longer afford to ignore employee benefits. The combination of the pandemic, rising worker expectations and fierce competition for talent means benefits are becoming a strategic tool to cut turnover, boost productivity and protect margins in low-paid, frontline workforces.
The article pulls together research and case studies showing benefits often reduce turnover more effectively than pay rises, and that technology (benefit apps, personalised decision support) has removed many historical barriers to offering schemes to dispersed, shift-based and deskless employees. Examples include Costco (8% turnover) and Sam’s Club (productivity and sales uplifts), plus case studies from Bupa, Tesco and Gatwick Airport.
Key Points
- Low-paid sectors (retail, hospitality, healthcare) historically underinvested in benefits, but the situation is changing.
- Evidence shows comprehensive benefits can reduce turnover more effectively than wage increases in some contexts (retail turnover can reach c.130%).
- Organisations offering strong benefits often see measurable gains in retention, wellbeing, productivity and profitability (examples: Costco, Mercadona, Sam’s Club, Bupa).
- Lower-income employees have specific needs (utilities, childcare, transport, health) that benefits can address and which influence job choice.
- High-impact benefits architecture reframes benefits technology as a driver of business performance, not just cost control.
- Benefit apps and decision-support tools make schemes accessible and personalised for shift-based and frontline workers, improving uptake and value.
- Without evolving their total reward offer, low-paid industries risk talent drain to sectors actively recruiting from them.
Why should I read this?
Short and blunt: if you run or advise organisations with large numbers of lower-paid or deskless staff, this is a wake-up call. The article bundles data, case studies and practical rationale showing benefits are not a luxury — they’re a lever for cutting churn and lifting performance. Read it if you want a quick, evidence-backed case to take to your board or budget holder.
Source
Source: https://hrzone.com/is-it-time-for-low-paid-industries-to-embrace-employee-benefits/
