The inflation and energy crisis: is it time to review your pension and employee benefits?

With rising levels of inflation and other cost pressures on employees, at least eight out of ten employers are taking action to react to the cost of living crisis.

We surveyed a range of large UK businesses to understand the challenges they face around business costs, talent, skills and productivity. The majority of respondents are considering interventions to help employees in the short-term, primarily through direct financial support such as focused pay increases and one off bonuses/payments.

Over the medium and long-term, 25% of respondents are currently reviewing their existing pension and benefits provision to identify new ways to manage business costs. With such a diverse workforce, we believe that a ‘one-size-fits-all’ approach no longer supports employees. Our recent Hopes & Fears survey reminds us that employees are looking for a personalised approach to benefits. As an employer, how do you manage business costs while maximising the value to your workforce?

A strategic review of your pension and benefits doesn't have to be laborious. It's also a great opportunity to assess whether your employees value what is already available to them. We have identified some potential quick wins to consider when undertaking a review:

Are you maximising your services from your existing providers? Think of any additional ‘add-ons’ which may support employees, like an Employee Assistance Programme (EAP).
Changing provider or adjusting scheme design? Reviewing existing provision isn't just about changing providers. Changes to scheme design can very quickly increase value for your employees without a major overhaul. For example, is your pension contribution scheme design flexible enough to allow members to contribute more or less, depending on their personal circumstances?
Do your employees know what is available to them? Consider sharing stories (peer-to-peer) to bring this to life and demonstrate how your pension / benefit arrangements have supported colleagues.

Your pension and benefits strategy needs to be tailored to your business and workforce. Take this opportunity to align your corporate responsibility and values, with your overall strategy. This will allow you to take into consideration new and evolving areas, like ESG and D&I, as well as providing benefits which your employees really value.