Offering attractive employee benefits has been proven to increase staff loyalty, boost productivity and help to attract the best talent. It can also help reduce the costs for your business by ensuring that you need to recruit less often and thus spend less money on training. As well as also potentially ensuring that your business remains tax efficient. At PAB Wealth Management we can discuss the perks and benefits employees actually want and how our financial advisors can help you.
Group Income Protection:
Not all firms can offer their staff paid sick leave due to the ongoing cost of this to the business. A group income protection scheme for your staff could help not only your staff members but also your business. Your financial advisor will discuss with you a plan that will not only be cost effective but will help to put your staff members at ease should they be unable to work due to illness.
Payment will usually start after a specified period which is called a deferred period. The payment the employee receives can be paid for a specified period 1 year or 2 years normally, until the employee returns to work or until the policy ends. The longer the period that the employee is paid generally the more expensive the premium will be.
In addition to providing a monthly income to your staff member Group Income Protection Policies can also potentially provide services to help support employees who are unable to work due to illness or accident. These can range from rehabilitation services such as physiotherapy or counselling.
As an employer the benefits to you with these types of policies are that they may be able to help your staff member return to work quicker, it will also help to reduce the cost of long-term sickness to you the employer as well as making your employment package seem more attractive to potential employees.
Recent studies have shown that the average UK employee has around £6,500 in personal savings. In fact 23% of employees say that they have no savings at all the importance. Looking at this the benefit for your staff is clear to see.
By speaking to your qualified financial advisor we will be able to provide the right financial advice to assist you in relation to employee benefits and how this not only helps your business but can also help put your employee’s mind at ease should you not have a current workplace sick pay scheme in place.
At PAB Wealth Management our financial advisors are workplace pension specialists. We have founds that since auto-enrolment became law and all eligible staff members must have the option to be enrolled in a workplace pension that businesses have struggled to make sure that they have the right scheme in place. For an employer it is easy to provide added value by making sure that your workplace scheme is with the right provider and suits the needs of your employees. It can be hugely beneficial to speak to a financial advisor to discuss the impact of the type of scheme that you currently have and if savings can be made by your company moving forward in relation to pension payments as well as providing a better pension scheme for your staff members.
As an employer you are legally required to have a workplace pension scheme. You will need to enroll any employee if they are over the age of 22 and under state pension age and earn more than £10,000 during tax year 2022/23. You will also need to enroll someone in your scheme if they earn between £6,240 and £10,000 and they ask to join the scheme. You will also then need to make contributions on their behalf if this is the case. Following the implementation of auto-enrolment you are required to pay in 3% of your staff members annual salary. The employee makes a contribution of 4% of their salary and the government provides a further 1% via tax relief.
Staff members can choose to opt out of auto-enrolment should they wish to. But, as an employer you cannot force them to opt out. If a staff member decides they wish to opt out of the scheme they can re-join the scheme at any time and you will be required to begin making contributions for them again.
Your financial advisor can take the difficulty away from you as a business by administering your company pension scheme on your behalf. By matching your pension scheme with the right provider we can ensure that your employees are receiving the best value for their pension contributions.
Our financial advisors will normally start the process by arranging an initial discussion and presentation with both yourselves and your staff to discuss what you need both need from the scheme. Further meetings with staff members will take place where we will assess their retirement plans as well as discussing any previous pension pots they may have from previous employers. If it proves to be cost effective it may be possible for all pension pots to be merged to ensure that your employees are receiving maximum benefit and minimum costs in relation to their pension.
By making sure you have a well-run and competitive pension scheme it is possible to set yourself apart from your competition when you are searching for employees. As well as helping with staff retention meaning that in the long term further cost savings can be made by ensuring you don’t need to employee new staff members as often. Many small and medium firms have placed their auto-enrolment schemes with NEST. Although these schemes are cheap to implement they do not provide good benefits for your employees’ but in addition may be costing you as a business money as they do not enable you to benefit from using salary sacrifice which may enable you to reduce your National Insurance contributions.
Your financial advisor will contact both you the employer and the employees on an annual basis to review their situation. If a staff member requires further information or help with their individual pot they are free to contact their financial advisor to assist with this.
If a staff member were to leave employment with yourself their pension would remain invested and will hopefully continue to grow. However, neither you nor the employee will be required to keep making contributions.
Spending the time to work with our qualified financial advisors here at PAB Wealth Management will help you to ensure that you have the best possible pension scheme for your companies needs.
Group Private Medical Insurance:
Health concerns are high following the Covid-19 pandemic. With this in mind health insurance is fast becoming one of the top perks employers can provide to their employees. Speaking to a financial advisor will help you to decide on the type of scheme that you can provide to your staff members.
Group Private Medical Insurance can be a valuable employee benefit as well as helping to reassure your staff members that they will receive prompt medical assistance should they need it. Especially in light of extended NHS waiting lists this can really set your company apart from the competition as an employer. Offering this benefit to your employee’s can help your company benefit from reduced staff absence as well as potentially increased retention rates for staff. Thus meaning having to spend less money in the long term on staff recruitment and training. Private Medical Insurance is seen as a valuable employee benefit and can help by ensuring that staff stay loyal to your company. The type of cover available can be enhanced by offering cover for spouses and children. By speaking to a financial advisor you will help to ensure that the type of scheme you proceed with is the right scheme for both you and your staff.
Dependent on the cover level you decide on cover can be provided in relation to dental care and eye appointments all the way through to cancer treatment. If one of your staff members unfortunately becomes unwell they can contact the provider who will direct them to use their GP service. If a referral is required this is given to the provider who will then help the staff member to choose the right specialist and hospital for their needs. Cover to assist employees who are having mental health difficulties can be included with most providers. This can include cover for diagnosis, counselling and medical treatment when needed.
The costs involved with Private Medical Insurance will depend on the level of cover selected. Here at PAB Wealth Management your financial advisor will discuss with you in depth the best course of action in relation to your business. You can either choose to have the employee pay the monthly premiums as they will benefit from the reduced premiums available from a group policy. Alternatively you as firm may choose to pay the premiums on behalf of your staff members. However, you will need to make them aware that this will be treated as a benefit in kind.