Are you paying too much for employee benefits?

With latest official figures (for June to August 2017) showing UK unemployment at just 4.3% – its lowest level since 1975 – employers need to not only offer attractive benefits packages, but also make sure their employees appreciate the value of those benefits. This involves both reducing unnecessary costs and communicating the contents of benefits packages clearly.
 
Based on the experience of Moore Stephens’ employee benefits experts, employers are often spending 15%-30% more than they need to for the benefits they offer to their employees. One simple reason is that, once a benefits package is in place, the cost charged by providers tends to creep up year on year. Simply comparing other offers in the market can often provide the necessary competitive pressure to keep costs down. Cost savings can then be reinvested in the business, or potentially used to improve the quality of benefits offered to staff – strengthening the employer’s ability to attract new talent and to retain key personnel. Surveys have shown that the offer of a more attractive benefits package is an important factor that can persuade individuals to move to a new employer.
 
At the same time, employees may well be incurring unnecessary costs when making their own pension contributions. For example, employers that set up a salary exchange or salary sacrifice scheme as a mechanism for paying pension contributions could save their employees  National Insurance as well as the employer saving 13.8% in Employers National Insurance cost on the employees’ pension contributions. Auto-enrolment means that many more people are now saving for retirement, but often at very low levels. Employers that help their employees get the best value from the pensions contributions they make – and help them understand the importance of pensions planning – can only help to strengthen staff loyalty and commitment.
 
If you would like to know more about the Moore Stephens’ Employee Benefits Solutions or how we can help, please do not hesitate to get in touch.
 
 

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