{"id":1553,"date":"2019-07-13T13:00:38","date_gmt":"2019-07-13T12:00:38","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/how-to-choose-the-right-employee-benefit-scheme\/"},"modified":"2026-01-29T10:23:19","modified_gmt":"2026-01-29T10:23:19","slug":"how-to-choose-the-right-employee-benefit-scheme","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/how-to-choose-the-right-employee-benefit-scheme\/","title":{"rendered":"How to choose the right employee benefit scheme"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tPeople & Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tHow to choose the right employee benefit scheme\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tBryan Collins<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

If you’ve decided to introduce an employee benefit scheme, or if you’d like to swap suppliers, there are several factors that need to be evaluated.<\/p>\n\n\n\n

Remember, it’s important to select a benefits package that will not only be cost-effective but will also be simple to manage and help increase employee engagement.<\/p>\n\n\n\n

Types of employee benefit schemes<\/h2>\n\n\n\n

First of all, think about what type of scheme is right for your business, depending on company size, level of investment and employees’ expectations.<\/p>\n\n\n\n

There are several different options available:<\/p>\n\n\n\n

Core package: <\/strong>A standard package offered to all employees. Staff can’t opt out or change which benefits they receive.<\/p>\n\n\n\n

Flexible benefits: <\/strong>The employer pays for this type of package. Staff can switch between benefits and choose the ones they want.<\/p>\n\n\n\n

Voluntary benefits: <\/strong>Employees pay for this out of their salary. The employer negotiates a discount with suppliers so that employees can access the benefits at a reduced rate.<\/p>\n\n\n\n

Salary sacrifice:<\/strong> Employees choose to sacrifice part of their gross salary in return for benefits that their employer buys on their behalf. This is a tax-efficient way of accessing benefits.<\/p>\n\n\n\n

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Becoming a people company: The way to unlock fast track growth<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Want to know how to put your people first in your business? Download our research to discover common traits of People Companies and turn your business into a People Company.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload the report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

What to consider when choosing a supplier<\/h2>\n\n\n\n

Before you start looking for suppliers, be sure you know what type of benefits your employees would like you to provide.<\/p>\n\n\n\n

Consider your workforce:<\/strong> For parents with young families, Tax-Free Childcare<\/a> is likely to be popular. Older workers may be more focused on healthcare and pensions<\/a>. Picking a scheme that offers some flexibility is a good idea.<\/p>\n\n\n\n

Ask your employees which incentives they prefer:<\/strong> However, be aware that there may be a discrepancy between what employees say they would like and those they actually choose.<\/p>\n\n\n\n

Review uptake in other businesses:<\/strong> Take a look at our article about investing in an employee benefits scheme<\/a> – it includes information about the most valued benefits.<\/p>\n\n\n\n

Shortlist potential benefits suppliers<\/h2>\n\n\n\n

To help you find a supplier, use an online service to find a benefit scheme to match your business needs. And to help you make a decision about which one suits your business, think about the following criteria:<\/p>\n\n\n\n

Do they have a proven track record for providing employee benefits?<\/strong><\/h3>\n\n\n\n

Check their credit rating and financial stability to ensure your employees’ investments will be safe.<\/p>\n\n\n\n

Can they offer everything you need?<\/strong><\/h3>\n\n\n\n

It may be easier to have a single supplier to manage all aspects of your benefits package, rather than using multiple companies.<\/p>\n\n\n\n

Get full details of all the benefits available, as there may be subtle differences between schemes.<\/p>\n\n\n\n

Are they familiar with working with your size of business?<\/strong><\/h3>\n\n\n\n

Are they reputable? Who are their other clients? Ask for references and take them up.<\/p>\n\n\n\n

Do they offer support to your employees?<\/strong><\/h3>\n\n\n\n

Phone up their support lines and see how quickly they answer and how well they handle queries.<\/p>\n\n\n\n

Is there a website or portal to manage the process<\/strong>?<\/h3>\n\n\n\n

Test it to see how easy it is to use.<\/p>\n\n\n\n

Do they have the right security in place?<\/strong><\/h3>\n\n\n\n

They will be holding sensitive information about your employees, so check that they follow data protection and have good online security measures. Additionally, ensure they provide reliable employment verification<\/a> to confirm the accuracy and legitimacy of employment records.<\/p>\n\n\n\n

What level of reporting do they offer?<\/strong><\/h3>\n\n\n\n

This will be useful so you can track which benefits are the best performers and which ones have less demand.<\/p>\n\n\n\n

How much would their service cost?<\/strong><\/h3>\n\n\n\n

Try to negotiate the best deal and make sure it’s possible to review the contract within a year. This way you have an opportunity to change supplier if the one you choose isn’t a good fit.<\/p>\n\n\n\n

Running a scheme in-house<\/h3>\n\n\n\n

In general, it’s easier to find a supplier to manage your employee benefits for you. However, there may be some benefits that are specific to your company and will need to be managed by your team.<\/p>\n\n\n\n

These may include:<\/p>\n\n\n\n