E-mail this page				Print this page

Contact: Mercer Feedback

Flexible benefits in the UK

Mercer has worked with over 80 organisations, providing a wide range of consultancy services and administration solutions tailored to suit specific requirements.   In particular, we can offer guidance and support in the following areas:    Feasibility    Plan design    Communication    Project planning    Administration    Tax and legal advice

Feasibility

The initial stage of any flexible benefits project typically involves the development of a business case. A well constructed business case will need to consider many factors, including:

• Links with organisational business goals
  
  
• Overall company reward strategy
  
  
• Resource implications (human/technological)
  
  
• Culture
  
  
• Budgetary considerations
  
  

Central to the business case is the need to undertake a feasibility study that takes account of the various issues involved in the transition to a flexible benefits compensation framework.

Mercer has considerable expertise in this area. Our approach involves five main stages:

• Identify the key objectives
  
  
• Develop a strategy for implementation
  
  
• Provide comparative market practice data
  
  
• Outline basic plan design proposals
  
  
• Estimate cost/resource implications and time-scales
  

Several optional elements can be included in the feasibility study. These include benchmarking the proposed benefit provision and undertaking contractual audits.

The combined aim of all these processes is to deliver a clear plan covering cost issues and realistic time-scales for implementation.

back to top

Plan design

With the business case approved, work can then commence on finalising the plan design. This stage is made up of a number of composite elements.

Flex allowance

A key part of the plan design is determining the nature and value of the ‘flex allowance’ which employees can use towards their benefit selections. As there are a number of ways of calculating this, Mercer can help identify the optimum method to suit the organisational context.

Benefits range

The range of benefits that can be included under the umbrella of a flexible benefits plan is considerable. The degree of flexibility associated with each benefit can vary depending on the nature of the benefit.

As the UK’s largest benefits consultancy, Mercer is able to provide expert guidance and advice in all benefit related areas including benefit broking and placement.

In addition through our sister company, Marsh Affinity Group Services we are able to offer a wealth of voluntary benefit plans that may be made available to your employees out of their after tax pay with minimal involvement from the company.

back to top

Communication

An effective communication strategy is vital to the success of flexible benefits, not only at the implementation stage, but also to foster a sense of enthusiasm for change from employees, gaining their active involvement.

Employee focus groups

Taking account of the views of your employees is a key ingredient to achieving employee buyin for any flexible benefits implementation.

Mercer can help arrange, structure and facilitate employee focus groups in order to identify the benefits that employees are likely to find most appealing.

Launch materials

Developing a launch campaign using appropriate media and messages will enhance understanding around the principles associated with flexible benefits and contribute towards the momentum for change.

Ongoing communication support

Providing training and education through appropriate methods will ensure long-term success. Again, selecting the most effective communication media will impact significantly on the success of the plan.

Project planning

The introduction of any type of flexible benefits plan will require careful thought and consideration. Mercer uses a well defined process that aligns with Mercer best practice and externally accepted project management principles.

back to top

Administration

In the past, many companies have been put off introducing flexible benefits plans because of the perceived administrative burden that accompanied their operation.

However, the growing use of computerised systems - whether it is on an outsourced or in-house basis - has helped to alleviate many of these concerns.

Mercer will work with you to identify the administration option that best suits your company’s requirements. We can also work to align your HR systems and processes to ensure your plan will operate effectively.

Whether you choose Mercer to administer your plan or use us to help find you the most appropriate internal solution, we will work alongside you to ensure that your corporate requirements are met.

What are the administrative options?

1. Use an internal system
Some companies choose to administer their flexible benefits plan internally. To support this option, Mercer will work with you either to develop your existing systems to match your plan design, or help develop a bespoke solution. Company size, culture, plan complexity and technology are often the determining factors which influence the attractiveness of this option.

2. Third party administration
Mercer currently provides third-party administration to over 30 clients. Utilising our internet-based application, ‘e-flex’, we are able to enrol employees electronically as well as via traditional paper based mechanisms.

Administrative data can be input manually, by file transfer or via links to other interactive enrolment software.

e-flex allows online, real time access for employees to view and amend a range of relevant pay and benefits data over the Internet. The technology platform uses the latest Internet security encryption technology.

In addition to the system platforms, direct employee support is available. Our experts are contactable via telephone helplines or email to help with the day-to-day management of your plan.

Tax and legal advice

The introduction of a flexible benefits plan has both tax and employment contract implications. Mercer can work with you to develop a set of plan rules and obtain Inland Revenue approval prior to any plan implementation.

Similarly, our expertise in the area of employment law will ensure that any contractual amendments required to underpin the plan are highlighted and built into the plan design.

Back to top

For further information about flex visit the Flex web pages or contact the Mercer flex team at Mercer Human Resource Consulting Limited.

E-mail this page

Print this page

Contact: Mercer Feedback