With the increase in National Insurance Contributions from 13.80% to 15%, UK companies are looking at employee benefits and cost efficiencies to manage higher staff and inflationary costs.  Below are ten tips for lowering costs and maximising Employee Benefits in a post Budget world:

1. Maximise Cost Savings

Leverage cost-saving opportunities within your employee benefits offering. Salary sacrifice arrangements for pensions, for instance, can save the company and employees money on National Insurance Contributions (NIC). Similarly, annual market reviews on Private Medical Insurance (PMI) and group risk schemes can save the company money.  Amending the cover can also help, for example on PMI, could a company look at how increasing ‘excess’ or ‘Outpatient limits’ impacts on premiums.

2. Avoid Overlap or Overpaying

Overlapping benefits, like offering individual and group health plans, can lead to unnecessary costs. Streamline your benefits package to eliminate duplication while maintaining comprehensive protection.

3. Assess Value for Money

Strike the right balance between quality and affordability. For example, pension scheme reviews will often result in lower annual management charges on pension schemes and ensure appropriate investment performance.

4. Conduct Market Reviews

Conduct annual market reviews on group risk and healthcare policies to stay informed about new products, receive better pricing options, remain competitive and relevant. This allows you to incorporate emerging trends, such as mental health support or wellness programs.

5. Benchmark Your Benefits

Stay competitive by regularly benchmarking company benefits.  Comparing benefits packages helps you determine if your offerings are adequate, overly generous, or lacking.

6. Communicate Effectively

Even the best benefits are ineffective if employees don’t know about them. Create a clear communication plan to educate employees about their benefits. Effective communication boosts usage and satisfaction.  Here’s some examples of undervalued and utilised benefits:

• Most group risk schemes come with added value benefits such as 24/7 virtual GP.
• Some UK pension schemes have tailored annual video statements or Spotify style ‘Your Year in Pensions’ videos and others offer tools such as modelling or transfer consolidation.

Make your employees aware of these by communicating effectively.

7. Ensure Proper Protection

Improper set up of group risk trusts can lead to delays, additional charges, or legal issues. Regularly review and update these arrangements to ensure compliance and safeguard both employees and the organisation.

8. Set up a Governance Committee

Pension governance committees who get together every year to review the overall pension and employee benefit offering.  These include finance, HR and ‘shop floor’ representation.  This results in well governed and audited employee benefits.

9. Recognise Your Workforce Demographics

Design benefits with your workforce’s demographics in mind. Younger employees may prefer guidance sessions on investments, mortgages or professional development, while older employees might value retirement contributions or healthcare options. A tailored approach ensures relevance and higher appreciation.

10. Take Advice

Managing benefits can be complex. Partnering with an advisor provides expertise in cost control, compliance, and employee engagement. Advisers can assist with benchmarking and negotiating better deals, ensuring your programme is competitive and tailored to your workforce.

By implementing these tips, you can create a competitive and cost-effective benefits package that maximises employee satisfaction. A well-planned strategy will enhance workforce loyalty, engagement, and productivity, ultimately driving your company’s success.

DISCLAIMER:
Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

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