PensionsOct 18 2017

Missed opportunities for IFAs to better staff benefits

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Missed opportunities for IFAs to better staff benefits

Advisers have an important role in working with employers to help their staff get the best out of their employee benefits programme.

Paul Howorth, an adviser from Sovereign Employee Benefits, said there are still opportunities for advisers to change the mindset of ‘middle ground’ firms so they can provide more than the minimum required for their employees.

Larger businesses will often already have a comprehensive benefits scheme, and much smaller firms or those that have historically been more cash-in-hand will typically do the minimum that is required of them.

Mr Howorth said: “There are some firms who see it as something they have got to do, so they are just focused on the cost and not really worried about the engagement.

“But there are other who want to use it as way to give their employees more.”

Mr Howorth’s comments come as recent research from Personal Group which details the wide impact comprehensive employee benefits can have on an employee’s salary and a company’s bottom line.

The study found that  shows that if employers were to implement an employee benefits programme which could include insurance, salary sacrifice, and other engagement programmes, they can make a tangible positive impact on an employee’s pay packet, general happiness and overall wellbeing.

Additionally, this is likely to be welcomed by employees, who have felt the hit as total pay for employees in Great Britain fell by 0.4 per cent in real terms between May-July 2016 and May-July 2017, according to research by the ONS.

Based on Office of National Statistics (ONS) household spending figures for 2015/16 period, Personal Group has calculated that a typical UK employee with access to a comprehensive employee benefits platform could save a £1,080 per year via shopping and recreational discounts.

They could also save more than £930 per year via existing childcare voucher schemes and save £1,695 per year on debt interest payments.

Just these three employee benefits combined are the equivalent of a 13 per cent pay raise for an employee on the UK average salary of £27,600.

The research from Personal Group also went on to show that a company with 1000 employees can save more than £125,000 per year with the introduction of an employee services platform and a holistic wellbeing programme.

But the impact is not only on the physical, financial and emotional wellbeing of staff, it can have a significant impact of the organisation’s bottom line too.