A successful professional services business with 70 employees, which prided itself on offering excellent training and apprenticeships guiding young graduates through to full qualification sought out Menzies Wealth Management to provide a review of it’s employee benefits scheme.
Whilst wishing to attract excellent staff at all levels of the organisation, over the years it had become increasingly apparent that whilst its salary levels were competitive, the individuals they were trying to attract were motivated by benefits other than salary.
The company provided a non-contributory pension scheme, but this was not enough, and in any event fell below the long-term contribution requirements of workplace pensions legislation.
We discussed the various different types of benefits and why some were more appropriate than others based on cost, tax efficiency and staff demographics.
Confidential staff surveys were undertaken by an independent organisation, anecdotal evidence was collected and peer comparisons made.
The #BrighterThinking employee benefits package recommendations
With our help and guidance the company bit the bullet:
- A private medical insurance scheme was introduced on a voluntary basis.
- A life assurance scheme was put in place to include all staff. No medical underwriting was required and all staff were immediately covered.
- The company decided to offer a matching contribution of up to 5% of salary on top of the current contribution they were making to staff pensions. This meant in addition to the current contribution, the employer would contribute up to an additional 5% to the employee’s pension if the employee was also willing too. The cost, though potentially expensive was controlled to the extent that only those that valued saving were rewarded, and not given to those for whom it was not a consideration. In itself, it also paved the way for the increase in contribution levels required in the future.
- An income protection scheme offering to cover staff salaries in the event of illness up to retirement age was put in place giving their employees peace of mind.
- Finally, a flexible holiday entitlement programme was implemented which allows staff to buy and sell holiday.
It’s important that any benefit scheme, big or small, is kept under regular and continual review to ensure it remains both suitable and cost effective for the firm. This company has retained us for the on-going servicing of their benefit scheme.
We are happy to say that the post implementation survey was very positive, staff retention has improved and staff vacancies have be filled more quickly.
About Menzies Wealth Management
Menzies Wealth Management is a subsidiary company of the Menzies Group, providing independent financial advice to both private and corporate clients. We are independent of all financial institutions.
This document (market commentary) is intended for general information purposes only and does not constitute advice. It is based on our current understanding of legislation, which may be subject to change. Menzies Wealth Management can accept no responsibility for any loss resulting from acting or refraining to act as a result of any material in this publication. Past performance is not a guide to future performance and the value of investments may fall as well as rise. Personal taxation will depend on individual circumstances. The Financial Conduct Authority does not regulate taxation and trust advice, or some types of mortgage.
Menzies Wealth Management is authorised and regulated by the Financial Conduct Authority 486548
Menzies Wealth Management
Lynton House, 7-12 Tavistock Square
London, WC1H 9LT
T: 020 7387 5868