Flexible benefits have long been seen as playing a vital role in employee engagement. It is arguably one of the keys to unlocking productivity, as well as attracting and retaining talent.
The reduction in pension commission is coupled with continuing pressure on health insurance costs, an increasingly competitive market for talent and a growing sense that employers need to do more to support employees in understanding their options in retirement. Given the ever-increasing costs of employee benefits, organisations of all sizes are now looking for smart ways to reduce benefits costs.
There are a number of savvy steps to tackle some of these issues without forgoing quality, including delivering innovative and efficient flexible benefits.
Additionally, each organisation is different and assessing employees’ absolute needs is essential. This will help identify which benefits the workforce really values. Focus groups and surveys can help with this too.
Even if an employer uses a technology provider to support the administration of its flex scheme, many of the value-add aspects can be delivered in-house. For example, owning communications, marketing materials and basic education will help the provider reduce its costs.
Organisations that have employees in different locations around the world should review what is in place to see where they can identify economies of scale.
Peter Roberts is head of reward and operations at the London office of law firm King and Wood Mallesons