A company's most valuable asset is its people. Employee benefits are a key factor in keeping and mot...
A company's most valuable asset is its people. Employee benefits are a key factor in keeping and motivating the right staff, while expanding the range of benefits available to employees and enhancing the rewards package is fundamental to attracting and retaining key staff. However, companies' ability to do this in the current economic climate is under pressure. In addition, more employees are saying they want financial advice in relation to their pensions.
The ability to add to the range of benefits through an affinity scheme with a financial services provider is superficially attractive. However, making what is effectively a tied arrangement with one product provider may not be in the long-term best interests of the company and its workforce. That product provider may not have the right products for the full range of age groups and risk profiles among the staff within the business.
Clearly the ability to offer an attractive range of benefits, including voluntary benefits, at a small cost to the business, is a major plus. However, rather than an affinity scheme run by one financial services group, a range of benefits from a variety of providers may make more sense.
Managing the relationships with this range of providers can be time consuming and may be done best by a third party. This is the key role for advisers to play, acting as intermediary between the company and the insurance group, taking the responsibility and workload for the relationship off the company, while at the same time ensuring best advice for employees.
