Employee benefits is a common term used to describe insurance products that are designed to manage and mitigate business risks for their employees.
They are used to help businesses:
- Retain, recruit and engage employees by improving employee engagement, health and productivity
- Improve financial wellbeing by increasing the value for money spent on benefits
- Be identified by their workforces as caring and the kind of employers people want to work for
- Support workforce diversity, including those who are now working for longer
Employee Benefits schemes are high-value, low-cost benefit options for businesses and employers that want and/or need to offer something more to their employees as part of a wider rewards and wellbeing strategy.
The three main Employee Benefit product areas that we advise on are:
- Group Risk
Employee Benefit schemes are generally quite straight forward, but you should still obtain independent advice when setting up new schemes or reviewing existing schemes to ensure that:
- Required levels of insurance cover are continually provided
- There are no unintended or unidentified gaps in cover
- Benefits are provided as tax efficiently as possible
- Employee benefit insurance schemes are regularly reviewed
- You are kept aware of any regulatory requirements or changes
Why you should consider employee benefits
Provided in isolation, or as part of a wider benefits package, employee benefits schemes can give employees access to benefits and insurances that they might not otherwise be able to afford or access.
Costs are often lower than % increases to payrolls and the costs per employee are typically lower than the price employees would pay if they bought similar benefits directly themselves.
Comprehensive benefits packages can be formulated in conjunction with other benefits, such as workplace pensions and other health and wellbeing initiatives.
Generous free cover limits are often offered by insurers, meaning no extensive medical questions or forms to fill in, other than periodic declarations for the whole workforce.
Compliance can be used to help demonstrate ongoing compliance with issues such as the provisions of the Equality Act (2010), helping to avoid discrimination claims etc.