Flexible benefit schemes continue to evolve and change depending on the needs of the users. In order to retain old employees and attract new ones, employers should take the time to gather data and information on potential flexible benefit scheme providers. This is because with so much competition in the market for flex providers, some tend to overlook and dismiss vital information that could be potentially harmful to the success of the scheme. So by understanding the importance of these pitfalls, employers could choose the right providers that would give the right employee benefit to suit their employees’ needs.
One major factor that providers tend to overlook is the different working demographics of a company. A newly graduated employee would most likely not choose a pension or wealth management scheme since it is not one of their top priorities. They would be looking at other benefits such as holiday or green car schemes which would give them more space to explore their new found freedom.
So look for a provider that takes into consideration the different working generations and know how they address this kind of issue. Ask them if they have ways on how to see which scheme will fit an employee.
Another factor that is usually taken for granted is the communication between the benefit scheme provider and employer. There are a lot of flex providers that assume a company already knows what to do when it comes to explaining to their employees. It is important that providers guide and support a company especially at the initial stages. This way employers can rely on the provider to help reach out to employees thereby increasing take-up of benefits. Ask your potential flex providers what their communication programmes are and their plans on how to effectively increase employee awareness. Talk to them if they are willing to send a representative every time there is a renewal of contract to discuss the new scheme or how to avail of various support services to employees.
Lastly, providers should look at the impacts made by social trends. Technology for example, has made it easier for everyone to have access to anything, anytime and anywhere. By creating an employee benefits portal, employees can have an easier time reading and understanding a flexible benefit at their own leisure. Look for a flex provider that is forward thinking and open to changes.
It is important to take note of these pitfalls in order to prevent future problems. Employers must cover all aspects and ask all the necessary questions.
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