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Can tax efficient “benefits” really be used for motivation?
David WalkerManaging Director, Let’s Connect
What are “employee benefits”? Are they the same as incentives?
• Voluntary benefits - Season ticket loans• Incentive programs - Smartphones• Core benefits - Home technology• Pensions - Dental Plans• Death in Service - Health Cash Plans• PMI - Duvet Days• Cycle of Work - Gyms• Shopping discounts - Childcare vouchers• Study Loans - Employee Assistance Programs• Car schemes - Income Protection• Car parking - Free lunch• Staff reward programs - Training and Development
What are the key components to an effective Reward and Incentive program?
Competitive…
What are the key components to an effective Reward and Incentive program?
Recognition…“Recognition means acknowledging someone before their peers for specific accomplishments achieved, actions taken or attitudes exemplified through their behaviour”
What are the key components to an effective Reward and Incentive program?
Engaged employees…
The Reward Portal - Premium is the next generation in incentive and recognition
It fully supports you in delivering an ambitious incentive and recognition strategy, and drives motivation, day after day, across your organisation
•Avoid the hassle of software installation – The Reward Portal is held on the Amazon Cloud with 24/7 access.
• Everyone’s approach seems to be based around technology…….which is great….
What are the key components to an effective Reward and Incentive program?
…if you work in such an environment….
Not everyone works in an environment like that…
…and we have multi-generational challenges also to consider
…and we have multi-generational challenges also to consider
…and we have multi-generational challenges also to consider
So the objective is clear – to implement cool and rewarding programs you need to put technology into the hand of each employee…
• People – employees – as a rule love smart technology
• People are using mobile as much, if not more, than desktop
• Smartphone ownership is growing fast
• Incentive and Motivation programs need technology…
…easy then, lets put technology into the hands of all of our employees…
• Give them all a device from you (unless that is a bit expensive…)
• OK – it is a bit – we can create a plan without technology…(not really an option is it..)
• Allow employees to access the very latest technology through a tax efficient Salary Sacrifice program….
HOW DOES THE SCHEME ACTUALLY WORK? – THE BENEFITS TO THE EMPLOYEE
• 24 month (Smartphones) or 36 month (Home Technology) salary sacrifice arrangement • Easy to access, affordable, and convenient programme• Allows employees, their households and families to access the latest Technology without
the often associated high purchase cost• No credit checks or deposit• Employees save against High Street price through salary sacrifice arrangement, often saving
around 20% against direct purchase for Home Technology • Exciting, valued and dynamic perceived benefit• Attracts “difficult to reach” 18-30 year old demographic from an engagement perspective
• Reduce the monthly cost of mobile phones and contracts – monthly savings of between 32% and 47% - for almost every employee…
HOW DOES THE SCHEME ACTUALLY WORK? – THE BENEFITS TO THE EMPLOYER
• Very high perceived value additional benefit – increased staff engagement, attraction and retention
• High staff participation rate • Programme enhances the ability for all employees and their families to improve their
knowledge and understanding of the latest technology• NI savings for employer, of around 6% of total spend, 13.8% on smartphones• Turnkey solution – all programme creation, launch materials and administration delivered
by Let’s Connect• Full financing of the program can also be arranged, so no impact on company cash-flow• No direct costs to employer for setting up and running the program
• Facilitates the effective implementation of Incentive and Reward platforms…!!
MAKING THE PROGRAMME A REALITY
• Designing the programme – options include:-• Product range – Leading Brands• Employee eligibility criteria and Monthly Reduction Limit• Financing options• Reporting schedules and formats• Timings of programme delivery and launch• Agree launch materials and communications• Open Order Window to employees
HOME TECHNOLOGY V SMARTPHONES
• Different tax treatment – Tax Efficient v Tax Free• Savings against High Street – between 5-20% v 32-47%• Term – typically 3 years v 2years• Range – computers, tablets, smart televisions, accessories v
smartphones
• Continuously open window v twice a year offer (ideally offer both)
MOTIVATED, INCENTIVISED, ENGAGED AND DELIGHTED EMPLOYEES…AND THEIR FAMILIES..
