Case study – designing and managing employee benefits
Our client was a multi-national company and we were approached by their Accountants in advance of a Main Board Meeting to assess the structure and merits of their existing Employee Benefits package.
As an acquisitive company, the client had amassed a number of occupational and personal pension schemes, including schemes with Final Salary related benefits.
The impact of such diverse schemes resulted in the company having no co-ordinated strategy to their overall Employee Benefits provision. There was little perceived value of the benefits package to staff, and the administration costs of running the various schemes was extremely high.
Our Approach and Findings
We reviewed the various schemes being operated, identifying their strengths, weaknesses and areas of common ground.
Gaps in the internal staff communications process were highlighted, as was the opportunity to improve the charging structure applicable to members’ benefits.
We also notified the client of forthcoming changes in legislation regarding Auto Enrolment and the key actions that would be required of them.
As a result of our findings and recommendations a co-ordinated Employee Benefits strategy was implemented which significantly improved member understanding and appreciation of the benefits being offered.
The administrative burden of the various schemes was streamlined, resulting in much improved day to day efficiency.
The cost to both members and the company was considerably reduced.
Ultimately, the company found that their Employee Benefits expenditure now brought value to their business rather than being perceived as a source of confusion and misunderstanding.