Flex your benefits and reduce your ever increasing spend in the process
It doesn’t seem like all that long ago that the Government launched its policy aimed at improving employees’ retirement savings.
Many employers will have staged in 2015-2016. In April 2018 the first step increase in required contributions will occur. Although this increase was delayed from October 2017, it’s definitely going ahead at the start of the next tax year. Have you planned for the additional employer contributions that you are going to be required to pay?
There are several ways you can help to mitigate the impact on your employee benefits budget, and one of those is through the implementation of a new flexible benefits scheme.
A well-planned and suitable flexible benefits scheme can enable a reduction in employer benefits expenditure through tax and NI efficiencies. For example, perhaps you are currently making employee contributions into pension pots direct from net pay. Transitioning to a salary sacrifice arrangement will enable NI savings that can be reinvested into higher base employer contributions.
It’s also important to remember that the employee’s required contribution will be increasing as well. This means that it becomes ever more vital that employers do what they can to mitigate the effects on employees’ financial positions. A flexible benefits scheme can do just that; by providing a shopping discount scheme, staff members can save money on their weekly shop. Or, through the implementation of a dental insurance or health cash plan scheme, they are covered for those unexpected expenses that can crop up, and can often be quite significant. Healthier and more engaged employees are also more committed to their jobs and this has positive influence throughout the organisation, reducing turnover and enhancing productivity – providing a lot more “bang for your buck” than at first glance.
A flexible benefits scheme allows employers to improve employee engagement with their reward strategy, and any number of benefit combinations can work together to enhance your employees’ total reward. Jelf can offer competitive portfolio pricing when policies are implemented alongside a scheme – contact us for more information.
For more information visit our Workplace Savings section.