When it comes to selecting your benefits, and how you want to administer them, you’ll want a scheme that works well for you and your people.
Flexible benefits (Flex) offer employees the choice and flexibility to exchange their salary for the things that are important to them and allow employers to offer a broader range of benefits to their workforce. Core benefits can also be offered on top of an employee’s salary.
One great thing about flexible benefits is the possible tax and NI savings to be made using salary sacrifice. A salary sacrifice exchange happens when an employee gives up the right to part of their salary due under their contract of employment. Usually, the exchange is made in return for the employer’s agreement to provide the employee with some form of non-cash benefit. In most cases, discounted purchase prices can also be achieved as well as the ability to spread any payment terms over a 12-month period.
Flexible benefits give you the ability to recognise the diversity among your employees and provide a benefits package that is both relevant to, and engaging for, each employee.