Maximising the benefits of salary sacrifice

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Maximising the benefitsof salary sacrifice

• HR Solutions Employee Benefits Conference
• May 2007

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Key Facts

• We are the worlds leading independent
  organisation dedicated to cancer research
• We are the largest single funder of cancer in the
  UK
• Our annual spend on research was 300m in 2006-07
• We have taken over 90 new anti-cancer agents into
  clinical trials
• Race for Life entrants have exceed 740,000
• Over 30,000 volunteers give their time freely to
  support us
• Hundreds of thousands of people are alive in
  Britain today thanks to progress made in cancer
  research

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Cancer Research UK
Science
FM
Infrastructure
PC
Retail
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Key People Strategies

• Create an organisation and culture that is
  aligned to the purpose and vision
• Ensure an adequate supply of high quality
  scientists
• Attract and retain highly talented individuals
  across all areas of CR-UK
• Build the recognition of CR-UK as a place of
  choice to work
• Develop flexible reward and recognition packages
• Foster creative solutions through diversity in
  our thinking

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CR-UK Reward Philosophy Core Principles

• A competitive position that will attract and
  retain high quality talent
• A link to clear standards of contribution
• A recognition of excellence
• An emphasis on the total reward offering
• Fairness that comes from a transparent, open
  system
• Flexibility and allowance for differences

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What our employees tell us about reward

• Reward packages should be linked to the market
• More flexibility needed to reward high performers
• More recognition for excellent performance
• Emphasis on development as an element of total
  reward
• Develop a menu of benefit choices

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Our Current Rewards Benefits
Life Assurance
Season Ticket
Employee Savings
Location
CCV
Cycle2Work
EAP
Annual Leave
Pension
Salary
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Our Benefits Approach

• Significantly raise awareness of rewards and
  benefits available
• Broaden the offer maximising on cost effective
  opportunities
• Segment our offering in order to appeal to
  employees with different needs
• Target rewards and benefits to specific groups
• Develop an engaging and holistic approach to
  rewards and benefits

It all adds up
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Where do salary sacrifice benefits fit?

• A valuable complement to our core benefits
• Provides a wider menu of rewards and benefits
  choices
• Allows participation at a reduced employee cost
• Provides breadth of offer without significant
  cost to CR-UK
• More effective use of CR-UK financial resources
• A growing element of the CR-UK rewards and
  benefits offering

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CR-UK Salary Sacrifice Offering

• Current offering
• (Home Computing)
• Childcare Vouchers
• Cycle2Work
• Coming soon
• Mobile Salary Saver
• Workplace Nursery Scheme
• Staff Restaurant?

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Salary Sacrifice Challenges Encountered

• Buy-in from key partners Finance, HR, Payroll
  etc.
• Administration load especially if take-up is
  low
• Financing low numbers may make self-financing
  more efficient
• Recovering costs if participants leave before
  contract end
• People often think there is a catch
• Scheme rules can curb enthusiasm (e.g. cycle
  commuting)
• Communication you can never get people to
  notice enough
• Knowledge management, complexity and turnover

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Summary

• Salary sacrifice presents CR-UK with an
  opportunity to broaden our benefit offering a
  core element of our reward strategy
• Savings derived from salary sacrifice enable more
  effective use of donations, including further
  investment in benefits
• We will continue to identify opportunities to
  broaden our offer through salary sacrifice
• Bold and regular publicity works
• Support from key stakeholders is critical

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Together we will beat cancer