Importance Of Reviewing Company Employee Benefits
There is growing pressure on corporate profit & loss (P&L) accounts following the BREXIT vote, Sterling depreciation and uncertainty with regard to the future Economic strategy to be adopted by the new Chancellor in November.
Many companies are reviewing the Return on Investment (ROI) delivered by their Employee Benefit offerings and also looking at ways to drive efficiencies through the use of technology and financial education to ensure member engagement.
There are a number of important reasons to undertake a review of your current benefits:
1. Are the fees your broker charges competitive?
The range of fees charged by advisory firms vary greatly and by seeking a comparison you may be able to either negotiate a reduction or look to select an alternative adviser to save money.
2. Are you paying commission for Group Protection & Healthcare rather than fees which are transparent?
Many advisers charge commission on the insurance policies they broker for their clients. The commission rates often far outweigh the fee that would otherwise be charged under a fee agreement. The result of this is an increased premium for the client, which could be reduced.
3. Have your pension scheme charges reduced in the post commission world?
After commission ended, many schemes retained their higher Annual Management Charges as the provider was unwilling to negotiate a reduction due to their own internal accounting. By approaching the market it is possible to assess what is available if you were to change to a clean fee based scheme. This could facilitate a new negotiation with your existing provider or a consideration to change Pension Company.
4. Are you making best use of Voluntary Employee Benefits and the massive potential for savings to both the company and employees?
Rather than a substantial change such as a replacement of broker or pension provider which can be disruptive, employers are looking to add new benefits to their Employee Package to improve the employee perception and engagement and also to allow both the company and individual to save money. One of the big savings available is the facility to buy/sell holiday entitlement.
5. Are you utilising technology to communicate benefits for engagement and staff retention?
Many benefit packages have become stagnant over the years and need enhancing and re-launching to make them more relevant to the modern work force. New health initiatives and technology is available and benefit offerings can be segmented for a diverse employee base. This in turn demonstrates that the company is continually looking to enhance the benefits and leads to improved retention.
6. Has the level of workplace financial education declined in your business under the new explicit fee structure for advice?
With the cessation of pension commissions there has been a gradual reduction in the time advisers spend face to face with employees, as they now have to charge fees to the employer for this service.
Helm Godfrey provides Financial Education to our clients and we can run seminars and face-to-face sessions, which often include reviewing the staff pension scheme investment options.
Carrying out a no-obligation review can only add value to your business as it will either validate your current package or identify areas you might improve on to benefit both the P&L and your employees.
Please feel free to contact Philip Thrush at Helm Godfrey Employee Benefits if you are interested in discussing any of these points.