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Does Your Business Need an Employee Benefits Consultant?

By: Garry Crystal - Updated: 24 Mar 2012 | comments*Discuss
 
Employee Benefits Consultant Pensions

Employers who are having trouble deciding on which of the numerous employee benefits to implement can seek advice from an employee benefits consultant. But what exactly can an employee benefits consultant offer to a business?

What is an Employee Benefits Consultant?

One of the main roles of an employee benefits consultant is to work alongside employers to develop and implement employee benefit schemes. Employee benefits can take the form of pension plans and medical insurance. Many employee benefits consultants work within insurance companies. Consultants will be able to provide advice on the most cost effective employee benefits that employers can implement to suit their budgets.

Is Hiring an Employee Benefits Consultant Expensive?

Consultants no matter what their field will usually always come with a fairly high price tag. Employers will be hiring the consultant for their expertise in a particular area. The main principle behind a consultant is to save money over the long term or to fix something that just isn’t working for a business. Employers can, if they wish, simply implement employee benefits through a range of providers. But an employee benefits consultant should be able to provide the best employee benefits solutions to suit the employer’s budget and benefit requirements.

How Much Will It Cost to Implement Employee Benefits?

There are a number of variables when it comes to the price of an employee benefits package; the main factor being the range of benefits required. Another factor will be how big the organisation is and how many employees are involved. Setting up a flexible benefits package for 500 employees could cost an employer around £20,000, and this is with salary sacrifice included. Other price factors can include ongoing costs. The larger the amount of employees and the more comprehensive the benefits package, the larger the price tag will be.

What Other Services Can an Employee Benefits Consultant Help with?

There are a range of issues that surround implementing an employee benefits plan. There are a number of tax issues to be considered that vary depending on the type benefits provided. There are also legal issues such as employee benefits contracts including the many contractual terms and conditions. Employee benefits consultants will be able to give advice on all of these red tape issues.

What Other Employee Benefits Can Consultants Help With?

Basically, if it’s an employee benefit a consultant can give advice and the best solutions. Aside from pensions and medical insurance, consultants can advice on childcare vouchers, employee retail discounts, company car schemes and employee education. Consultants will be able to offer advice to employers and run through the benefits schemes with employees.

Is there an Ongoing Cost When Hiring an Employee Benefits Consultants?

Legislation and tax issues are always changing, and this also pertains to employee benefits. The latest government plans for occupational pensions and the new state pension retirement age is an example. Consultants will be able to advise on updating legal and tax issues when required. Employee benefits also change over time and new benefits may be more cost effective. Building a good working relationship with an employee benefits consultant should be cost effective over the long term.

Does My Business Really Need An Employee Benefits Consultant?

The answer to that question really depends on the number of staff and the benefits being offered. Implementing a simply pension plan at the best price can be undertaken by obtaining quotes and advice from a few pension insurance companies. A comprehensive employee benefits plan is a however a big undertaking and would involve a huge amount of research time. Employers would also need to be up to date on all the legal and tax requirements of implementing a benefits package.

Where Can I Find an Employees Benefits Consultant?

Employers can obtain advice on employee benefits consultants from the Association of Consulting Actuaries and the Employee Benefits Association. Contacting pensions and insurance companies should also be of help to employers who are considering implementing employee benefits. There are also many independent employee benefits consultancies that can be found by conducting an internet search.

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