Expert Insights on Employee Benefits for SMEs with Anne Lawson

I’m the President of our local BNI Chapter, and my goal this term is to showcase some of our brilliant members in a way that hasn’t been done before. This blog series aims to learn from my honest conversations with these local business leaders who walk the walk. They’re real professionals who have repeatedly proven their ability to improve organisations with methods that work. The advice they share is practical and actionable, exactly what you need to make real changes in your business.

What to expect: a wealth of diverse expertise, a strong sense of community, and a collaborative mindset that makes you feel included and supported.

Today's guest is Anne Lawson, an award-winning Employee Benefits Consultant at Acumen Employee Benefits. With over three decades of experience, Anne is the go-to expert for companies of all sizes seeking to develop impactful employee benefits packages.

Anne is here to share insights on rethinking employee benefits to enhance engagement, retain top talent, and promote sustainability.
Note: Managers and business owners (like you) are crucial in adopting strategies that address financial performance and environmental, social, and governance (ESG) factors.

1. Embracing ESG in Employee Benefits

Almost everyone seeks to work for an organisation that prioritises people and the planet over profit, recognising the importance of sustainability and environmental stewardship. No one really wants to feel guilty about their workplace anymore, as ethical concerns and social responsibility become increasingly significant. Employees want to feel proud of contributing to something positive, knowing their efforts align with a greater good and support a healthier future for all.

This is not another social media trend. We're looking at a fundamental change in values here!

Employees today want their employers to share their commitment to social responsibility, environmental sustainability, and ethical practices. By incorporating these values into your operations, you'll make your employees happy, and happy employees ultimately means happy customers.

Here's what Anne Lawson suggests:

1.1  Environmental sustainability — integrate green benefits into your employee programmes

Benefits can include:

• Incentives for using public transport
• Subsidies for electric vehicles
• Rewards for participation in company-led environmental initiatives

This will reduce your company's carbon footprint, attract eco-conscious employees, and ultimately attract like-minded new customers.

1.2. Social responsibility — support your employees' well-being and community involvement.

This support can include:

• Mental health support
• Volunteer time off
• Diversity and inclusion initiatives

These benefits show employees that you value their holistic well-being and societal contributions.

1.3. Ethical practices — offer fair and equitable employee benefits.

All employees must access the same benefits regardless of their position or seniority.

It's essential to build the right information flows so your staff can easily understand the value and purpose of these benefits. Transparent communication avoids misconceptions and ensures employees feel valued and supported, enhancing employee satisfaction, loyalty, and overall company performance.

2. Balancing Cost Control with Meaningful Employee Benefits

"A client struggled to retain and recruit staff, so we revised their benefits package to make it more tax-efficient, saving approximately £14,000. We reinvested these savings into benefits that employees wanted, leading to significant improvements in both retention and recruitment."

says Lawson.

What we can learn from this case study:

2.1. Identify tax-efficient benefit options

A financial advisor (or an employee benefits consultant) can help you uncover cost-effective benefits. An "expert" approach might involve restructuring existing packages to take advantage of tax breaks or exploring new benefits for better tax efficiency.

Doing so will free up financial resources without compromising on the quality of the benefits. So, you save money and ensure your benefit package remains competitive and attractive to current and potential employees.

2.2. Reinvest savings into desired benefits

Once you've identified and implemented tax-efficient benefits, you can reinvest the savings into programmes that resonate with your employees. You offer something that truly matters to your workforce, and your employees are more motivated, loyal, and productive, which ultimately contributes to your business's overall success.

To make it work, you must understand what your employees value most—wellness programmes, gym memberships, flexible work schedules, professional development opportunities, or other perks. Then, all you have to do is tailor your benefits package to their needs and preferences.

3. Mitigating Insurance Risks and Enhancing Employee Benefits

This is useful when acquiring another company. To eliminate risks, make sure you conduct thorough due diligence on the existing employee benefits.

Here are vital aspects to consider:

• Evaluate the current benefits and how they compare with your packages — health insurance, retirement plans, and wellness programmes.
• Review employment contracts for specific benefit commitments, such as lump sum death-in-service, income replacement insurance, or other long-term promises that could have significant financial implications.
• Ensure that the benefits comply with local laws and regulations.
• Assess the insurance policies, including health, life, and disability insurance. Pay special attention to employees who might be uninsurable under new policies due to existing health conditions.
• Analyse the costs associated with the current benefits and how they are funded. Determine if there are more cost-effective ways to provide similar or better packages.
• Evaluate employee satisfaction. High satisfaction can indicate a well-structured benefits program, whereas low satisfaction might suggest the need for improvements.
• Develop a strategy for integrating the acquired company's benefits with your own. Consider the financial impact, employee expectations, and the potential need for transitional benefits.
• Identify and quantify any risks associated with the benefits. Plan for how to mitigate these risks, such as negotiating coverage for uninsurable employees or adjusting benefit structures to align with your company's policies.

Lawson suggests working with experts to mitigate risks and find solutions that protect all parties involved. Ultimately, this might save you more money than you can imagine.

"A client was acquiring a business unaware of the associated risks. The employment contracts included lump sum death-in-service and income replacement insurance. During the setup of new insurance benefits for the newly formed company, it was through our due diligence that we uncovered a significant issue. One employee, who was off work due to a serious, potentially life-threatening condition, was uninsurable under the new schemes because he could not meet the "actively at work" insurance requirements. We successfully negotiated and mitigated approximately £670,000 of risk from the deal."

pointed out Lawson.

What's Next?

To improve employee engagement and retention, your company must adapt employee benefits to align with ESG principles and employee needs — while permanently monitoring costs and risks.

How to get started, according to Lawson:

1. Evaluate your current benefits package. Assess its tax efficiency, relevance, and alignment with ESG goals.
2. Engage with employees. Use surveys to ask what benefits they value most.
3. Plan for future challenges. Collaborate with an expert to balance benefits, costs, and risks, ensuring you can offer the best for your employees while protecting your business interests.

About Anne

Anne Lawson specialises in TUPE (Transfer of Undertakings & Protection of Employment) exercises, mergers and acquisitions, and flexible benefits. Her extensive expertise and proven track record in optimising employee benefits packages make her the ideal consultant for balancing cost efficiency with employee satisfaction.

Now that you know more about Anne, feel free to contact her at anne.lawson@acumeneb.com.

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