Improving Productivity And Retention Through Employee Benefits

Neil Morrow
Employee Benefits Consultant
The E B Partnership 

Entrepreneurs, such as yourselves, who have left the start-up phase behind should now be spending more time improving your business and looking to attract and retain the right staff who can further develop the business to fulfil its potential and maximise its value. The true test of a successful owner-managed firm is whether its founder is working for the business, or if it is working for them.

A key part of this process is to consider introducing employee benefits for staff which can improve morale, productivity and retention. But what are the options?

Pensions

Under new legislation all UK employers will have to begin making pension contributions for ‘eligible jobholders’ with ‘Qualifying Earnings’ over the next 5 years.  As an employer, you will have to make a contribution, as will the employee unless they opt out, but there are many different pension schemes available so it’s worth doing your homework to find the one which is best for your business.

Another consideration is the administrative burden this legislation is likely to impose on your HR person/team in reconciling the potentially ever changing contributions, ensuring the eligible jobholders are invited at the correct time and that the necessary reporting is submitted to The Pensions Regulator.

The EB Partnership offers a review which will cover the financial and administrative implications to your business, as well as the Regulatory requirements which you will face over the next few years.

A further consideration is that there are currently 2 main ways of mitigating the costs of introducing a pension scheme for staff, but from 1st January 2013 this is reduced to a single option so for more information please contact us today!

Employee Life and Health Protection

You could achieve great peace of mind for your staff by simply offering some employer sponsored life assurance (amounts between 2 and 4 x basic salary are typical). This can often be done for a tiny premium (the equivalent of a fraction of 1% of your payroll in many cases!). An additional benefit for the company is that the cost can be offset as a business expense against Corporation Tax.

In addition, many companies provide a fully or part funded Private Medical Insurance scheme for their employees with the main advantage to employers being the speed in which employees can receive medical attention thus helping to minimise time away from the office.

Additional Benefits

Recently there has been an increase in the availability of some benefits for purchase by all staff through voluntary schemes. Employees can buy additional life assurance, critical illness cover, medical or dental insurance offered by their employer at discounted rates, and often with less stringent underwriting terms.

Communication

Once the benefits package has been agreed, due consideration needs to be given to how to launch the benefits to gain maximum interest and how to continue to ensure that employees are kept aware of their benefits and how best to use them. The EB Partnership combines both face to face meetings with independent financial advisers and online packages to help companies receive value for money from their benefit expenditure.

For more information please contact us on neil.morrow@theebpartnership.co.uk

The EB Partnership is an appointed representative of Bond Wealth Management Limited which is directly authorised and regulated by the Financial Service Authority.  Bond Wealth Management Limited is registered in England& Wales No. 05050019 registered office: 1 Royal Exchange Avenue, London EC3V 3LT.  Financial Services provided by The EB Partnership include pensions, investments and regulated protection products, regulated term insurance and private medical insurance.

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