Flexible Benefits A beginners guide

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Flexible Benefits A beginners guide
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Areas to discuss

• What does flex mean?
• Planning the flex journey
• Total Reward
• Salary Sacrifice
• Flexible Benefits the stages

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What does flex mean?

• True Flexible Benefit Schemes
• Benefit allowance provided by the employer
• Select appropriate benefits / reward

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What does flex mean?

• Buy Benefits
• Purchase benefits through payroll
• Salary sacrifice benefits

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What does flex mean?

• Voluntary / Discounted Benefit Schemes
• Deductions from net pay
• Deal directly with provider

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Total reward a good place to start

• Effectively communicates the value
• Reduces administration
• Supports the introduction of voluntary benefits
• Supports the introduction of salary sacrifice
• Journey time 1-3 months

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Salary sacrifice

• Employee reduces salary for benefit

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Salary sacrifice
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Salary sacrifice
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Salary sacrifice

• Employee saves tax, NI and potentially VAT
• 2,000 11 - 220
• Employer saves NI and potentially VAT
• 2,000 12.8 256

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Salary sacrifice - things to watch out for

• Contractual change
• Minimum wage levels
• Reduction in salary driven benefits
• Keep the Revenue informed
• Difficult to run paper based - burden on HR time

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Full flexible benefits typical stages

• Build a business case
• Feasibility study
• Benefits review and broking
• Scoping and design
• Communication planning and branding

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Building a business case for flex

• Return on investment
• Tangible savings
• Intangible savings
• Evidence from exit interview analysis
• Employee survey
• Employee consultation forum/focus groups
• Competitor benchmarking

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Feasibility study

• How can your reward strategy meet your
• Corporate objectives
• HR objectives
• Understand the breadth of the project
• Understand the risks of the project

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Feasibility study areas included

• Timescales
• Financial modelling
• Employee attitudes
• Data audit
• Integration

• Workflow
• Communications strategy
• Benefits review
• Legislative impact

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Benefits review and broking

• Benefit review
• Aggressively test the market
• Understand the sensitivities of flex
• Risk market still immature
• Leverage your buying power

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Scoping and design

• Detailed specification of your flex scheme
• benefits
• rules
• workflows
• integration

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Communication branding

• You are now a marketer
• Sell into your employee base

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Communication example

• Starts with online survey and focus groups
• Identify your key messages
• Create a project plan the change process
• Differentiate from competitors
• Create and maintain a strong, distinctive and
  attractive benefit brand

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Our experience of a successful project

• Sell project internally
• High level project sponsor
• Internal project manager
• Clean employee data
• Increase pace of communication
• Dont give away all goodies in one go

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Any questions