Flexible Benefits – The Future
Far-reaching changes are afoot in the flexible benefits market as a result of the credit crunch and changing employment patterns.
Employers now need to start putting their benefits offer under the microscope to make sure the packages they provide are in tune with employees changing needs.
Mark Carman, Marketing and Communications Director of online benefits partner Motivano, summarises the key trends below:
Health Benefits: As the NHS struggles to keep up with the increasing demands placed upon it, health and well-being benefits are seeing an increase in popularity. Dental benefits are most in demand, as it becomes harder and harder for people to access an NHS dentist.
Retail Vouchers: With the cost of the weekly shop increasing dramatically for all families, employees are starting to view heavily discounted retail vouchers as a key benefit which can ease the pain of the regular supermarket shop.
Salary Sacrifice: Benefits such as Childcare Vouchers, delivered via salary sacrifice schemes, are seeing a rise in popularity as more mums and dads see the commercial benefit. Bike lease schemes may also see an upturn, as rising fuel costs force people to look at alternative ways to get to work.
Ethical Benefits: As corporate social responsibility continues to rise up the agenda, employers are beginning to look at ethical benefits. Carbon off-setting* and GAYE (Give As You Earn) schemes are proving particularly popular with employees.
There are also likely to be significant developments in the way technology is used to manage flexible benefits schemes:
Hand held mobiles/PDAs may be used to provide employee access to smaller schemes.
As the number of international flexible benefits schemes grows, systems will be upgraded to accommodate foreign languages and multiple currencies.
Systems will be developed to allow seamless interchange of information between HR, absence and reward databases.
Mark Carman says, “Embracing the changes will lead to positive benefits for employers. Providing real time information and seamless linking with benefits providers will keep everyone up to date with what’s on offer,”
“Organisations also need to look at how they can take advantage of the most up-to-date methods of communication. This will ensure employees receive information in a format they are comfortable with, which in turn will help them understand and buy into the strategies of the business. This will reduce staff turnover and help the organisation position itself as an employer of choice.”
Motivano UK was created in 1999 to bring innovative technology solutions to the Employee Benefits Marketplace. Motivano have over 180 clients within the UK and are present in over 26 countries worldwide where they are successfully delivering Flexible Benefits, Total Reward and Voluntary Benefits solutions. Now with many industry awards to their name, they are widely regarded as a leading provider in the employee benefits marketplace.
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