Improved administration and communication key to UK corporate benefits value and success'

Enhanced benefits administration and selection could be ëbusiness criticalí in an increasingly uncertain economic climate.

British businesses must improve the administration of benefits and learn to communicate more effectively with employees if they wish to achieve the oft spoken objectives of increasing engagement and retaining employees. With more than three quarters (76%) of companies looking to improve benefits administration and increase the return on investment in operational services, companies must decide whether to outsource or run benefits in-house, says new research from JLT Benefit Solutions Ltd (JLT).

According to the research, 55% of participating businesses communicate benefits to their employees less than once a month, while 26% admit that they communicate benefits on an annual, or ad hoc basis.

Such an apparent disconnect between employer and employee only serves to make employees less engaged and decreases the perceived value of the benefits package. While two thirds (66%) of respondents are actively looking at ways in which to improve their benefit communication, they are not always successful in developing a consistent communications strategy that meets employee demands.

Interestingly, just 29% of companies offer online access to benefits packages and itís increasingly evident that the vast majority of survey participants have yet to capitalise on the benefits of facilitating an online service. However, with the growing need to reduce the administrative burden, cut paper documentation, support green initiatives and enhance communication, JLT expects this figure to increase considerably over the next twelve months.

Through tackling the communication problem, the research also predicts a greater take-up of Salary Exchange and Flexible Benefits schemes. With the changes to Income tax in the 2008 Budget likely to decrease net contributions into pension schemes and the significant rise in the Upper Earnings Limit increasing the National Insurance Contribution burden on employees, the benefits of Salary Exchange have increased. Currently only 25% of survey participants do not use salary exchange initiatives, while over three quarters (76%) of organisations have yet to adopt a Flexible Benefits Scheme.

As we approach a potential economic slow down and companyís attitude to employee benefits can shift, JLT believes that this lack of the utilisation of Flexible Benefit is short sighted. Schemes such as these place a strong focus on the individual and can help organisations to control costs while providing a more effective benefits package thatís tailored to meet the needs of the employee.

ìAddressing core services like administration, marks an important first step towards improving the efficiencies of a companyís benefits portfolio,î said Jon Bryant, Regional Director, JLT Benefit Solutions Limited. ìHowever, streamlining back office services and generating an improved return on investment is only half the story. ìFlexible Benefit Schemes and Salary Exchange programmes demonstrate that there is a great deal to be gained from corporate benefit programmes and in todayís uncertain economic climate, senior executives should ignore their benefits portfolio at their peril,î he added.

Duncan Howorth, Managing Director, JLT Benefit Solutions Limited, says, ìFor UK businesses, 2008 should really be about encouraging employers to consider their workforce. By establishing two-way communication with employees, organisations have the opportunity to capitalise on existing resources and deliver a more comprehensive benefits portfolio to their staff.î

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