Case study on benefits consolidation for a major international IT business
In August 2011 Generation Financial Services was introduced to a Company with approximately 260 employees based over five offices in the South of England. The business had grown over the past few years and had acquired a number of smaller businesses.
Generation Financial Services was advised at the initial meeting that the expansion of the business was posing challenges to the HR team in relation to administration and member communication.
Some of these issues were due to a lack of overall service on the pension front as the client was dealing directly with the pension providers and other benefits were managed by employee benefits providers. Furthermore, the company had five separate pension schemes in place.
The client and Generation Financial Services identified the following areas of concern:
1) HR workload needed to be reduced
2) Pension web functionality needed improving
3) A reduction in fees was preferred
4) Increased employee engagement was needed
5) An audit was required to ensure benefits fit the business and staff requirements
6) No pension advice was being provided to employees
7) Annual management charges were high
Following the initial meeting, Generation Financial Services provided a report and recommendation to address the clients’ issues. We were pleased to confirm that we were subsequently appointed as the sole benefits manager. The changes implemented by Generation Financial Services were:
a) Management and administration of all employee benefits, reducing HR time and liability
b) Consolidation of five pension schemes into one plan
c) Introduction of Salary Sacrifice to the pension arrangement
d) Identified need to reduce Income Protection and introduce Critical Illness in order to improve benefits offering
e) Pension Annual Management Charges reduced by fifty percent
f) All staff seen by Generation Financial Services consultants by way of seminar and face-to-face meetings and given advice on pension funds selection, old pension transfers and an overview of employee benefits
g) Key scheme details for all benefits and uploaded to the clients’ intranet
h) Full audit of risk benefits, which identified errors that were immediately addressed
i) Annual review process introduced and annual staff surgeries were agreed
j) Contact email and phone details made available to all employees, to negate the need for staff to contact HR