Now that 2020 is here, a large number of us will be thinking about what we want to achieve over the next 12 months.
As an employer, have you considered goals when it comes to your employee benefits? Here are a few suggested goals/objectives for your company when it comes to your benefits package:
Ensure that your current benefits package remains appropriate
You may already offer a number of different benefits to employees, but when was the last time that they were reviewed? Changes in legislation, product/provider offerings to name just a few areas occur frequently and may impact on what you currently offer to employees.
Just as importantly, have you considered if your current benefits are appropriate for your particular workforce? Introducing new benefits is always an option but quite often it can simply be a case of tweaking what you already offer to meet the needs of your company and employees. If you’re not sure what your employees think about your current benefits offering, ask them!
Help your employees understand the value of the benefits you offer them
Spending money on benefits is all well and good, but if they aren’t communicated to your employees in the right way then that can lead to low take up and the benefits not being fully understood or valued.
When considering how to communicate benefits to employees it’s important to understand why you are offering certain benefits to them. For example, group life assurance can be positioned as the company looking to provide financial support to an employee’s family should the worst happen to them.
Pensions, although mandatory to offer for the majority of employers under auto enrolment legislation, are a way of helping employees save for retirement, with money also being paid by the company.
It’s all in the messaging!
Regardless of the cost that you are paying for providing employee benefits, you will no doubt want employees to appreciate what is being offered and for them to understand that benefits form a key part of their overall remuneration.
Keep a close eye on costs
We’re sure most companies will already be monitoring the costs of benefits, but understanding the main factors that influence benefit premiums will help with budgeting. A high number of claims under benefits such as group life assurance or medical insurance is in most cases likely to result in premium increases in the not too distant future.
A good adviser will be proactive in helping you understand where costs are potentially going to increase, the main factors behind it and how you may be able to mitigate any increase.
Review what you offer on an ongoing basis
We would suggest reviewing your benefits package at least annually to ensure that it remains appropriate in light of any changes in your company, workforce, market/legislative changes etc. It may be that no action is required but at least you will be reassured in the knowledge that your benefits package has been looked at.
An annual review can also be a good opportunity to send a reminder to your employees to show them what is on offer.
Content correct at time of writing and is intended for general information only and should not be construed as advice.