Before you think about communicating the 'total rewards package' it is important to review your benefits programme.
Benchmark schemes annually and where possible, re-broke risk costs, in particular for Life Assurance and Disability Insurance.
Value for moneyQuestion the rates with your broker and make sure you are getting value for money at group rates, without compromising the coverage offered.
Tender healthcare periodically to assess value for money. If healthcare is fully paid by the company, think about moving to excess plans where, for example, employees pay the first 75% and the company pay the remaining portion.
Encourage participation in pension schemes; tax relief on contributions and no benefit-in-kind!
Think about introducing a flexible benefits plan. It gives employees the option and flexibility to choose which schemes are important to them, depending on their personal circumstances.
Total rewards packageAfter you have reviewed your benefits programme, think about how you are going to communicate the ‘total rewards package’ to your employees:
- Sell all the benefits on offer so each person understands and appreciates the full value of their benefits.
- Typically a benefits statement is produced for each person and the value of their benefits broken down, for example, into salary, pension, health insurance, holidays etc…
- If you are not in a position to use costly consultancy services to produce these statements for you, simply use a standard one page document outlining the high level details without going into the value of benefits specific to each employee.
- This is just as effective when you break the benefits down into ‘core’ and ‘enhanced’, by doing this you are clearly stating those benefits which are ‘above and beyond’ the contractual benefits, like salary. For example, ‘enhanced benefits’ would cover cycle to work schemes or commuter tax saving schemes.
- And finally, make sure employees know where they should go if they have any questions about any of their benefits. For example, if you don’t have an in-house pensions expert, make sure your scheme administrators can provide this service as part of the overall service agreement. Give the appropriate contact details to your employees.