Employee Benefits - FAQs
Why do employers put in place Employee Benefits?
There are several reasons, often it is because a management team feel they want to provide certain benefits and are often driven by a desire to protect employees and their families. It could be to attract talent to a business or retain key staff for the long term. It could also be because they have listened to their staff and want to put in place benefits that are highly valued and motivating. Download our guide to Designing an Employee Benefits Strategy here.
What Employee Benefits can Ink provide?
We advise on a wide range of benefits, broadly divided into five categories – Financial Wellbeing, Protection, Health and Wellbeing, Lifestyle and Long-Term Incentives. Download a list of available benefits here.
How do we decide what to provide?
There is only one benefit that is a legal requirement, a Workplace Pension. Beyond that you have significant freedom and choice. A lot depends on the type of roles you have and people you employ, also your budget, your competitive environment and your understanding of what staff might value.
Do we need to provide the same benefits for everyone?
Not necessarily. You can have different benefits for different groups and job levels, but you must ensure there is no discrimination. You need to consider the different types of employee you have in your organisation, and ideal create a mix of benefits that suits as many people as possible.
Alternatively, you could create an employee benefits programme with a degree of flexibility, which would allow employees to choose their benefits within a set budget.
Is Ink an insurance broker?
Yes, part of our role for clients is to provide an insurance broking service for benefits such as Group Life Assurance, Group Income Protection and Private Medical Insurance. We work with some of the best-known insurers in the world and currently place over £4m of Gross Written Premium per year.
Are Employee Benefits taxed for employees?
It depends. Some benefits attract a Benefits in Kind liability, others do not. As a general rule, the premiums for healthcare related benefits are taxable (Private Medical Insurance, Health Cash Plans etc.), whereas the premiums for other insurances are not. Some benefits are very tax efficient, such as Workplace Pensions, the Ride to Work scheme and Ultra Low Emission Vehicles (ULEVs) as they attract both Income Tax and National Insurance relief.
How much do benefits cost?
It really does depend on a lot of factors. Clearly the more comprehensive the insurance cover the higher the costs. Several factors go into the pricing of a benefit – industry type, geographical location, employee demographics and the desired cover levels.
Some benefits don’t cost anything in cash terms, just time to design and manage, for example flexible working plans. Other benefits carry a significant cost and a clear business case (or legal requirement) will need to be in place, for example Private Medical Insurance and Workplace Pensions.
You will also need to consider the cost of advice, broking and benefits administration in your total spend.
How does Ink get paid for Employee Benefits advice?
We are paid either through a fee (payable by invoice or direct debit) or commission. We are fully transparent on any commission payments we receive, and can work on a ‘fee-offset’ basis which is a combination of fee and commission.