As benefits specialists we are often asked for advice on creating Benefit packages that work. Here is 10 elements to consider at the outset to ensure
- Know what you’re looking for and why. Start early on with the process too to ensure you’re not pressured into a deal that isn’t right for your organisation.
- Decide if you have the necessary expertise in-house to procure benefits ; if not outsource it to a broker. Outsource advisors have specialist knowledge, understand the providers and market. Outsource providers can save you time and money. But make them work for the money that you’ll pay them (New RDR Rules)
- Consider doing less complex benefits in-house e.g. dental plan, medical cash plan, cycle-to-work or Employee Assistance Program (EAP) to save costs, but only if you have the knowledge.
- Consider a benefits platform to communicate the company’s package and to enhance the benefits on offer. Benefit platforms also make the administration easier, less complex and reduces administration costs.
- Try to bundle as many benefits as possible from a single supplier to make use of bulk discounts and additional services e.g. some providers offer EAP services as part of their package or communication support &/or helpdesks
- Take out only the cover that you need for risk benefits. For a low risk workforce, consider increasing excess to reduce premiums.
- Consider tax relief options (salary sacrifice, salary exchange) that exist for many benefits including cars, bicycle, pension, etc.
- Ensure you review your suppliers (good procurement practice) financial stability and service deliver (references). Negotiate good SLA terms as part of the deal to protect poor delivery and none compliance.
- Compare multiple suppliers and negotiate on price to get best value for money.
- Seriously consider flexible benefits for your workforce, because one size doesn’t fit all. And also consider financial education as part of the package, especially with pensions provisions. Ultimately you should understand what benefits your employees value most to get a good return on investment.
If you would like further advice on creating an appropriate benefits package for your organisation call Tugela People.