Benefits Wizardry: Conjuring Funds from Thin Air

It's a challenge faced by people functions across the globe: how to adequately fund employee benefits programmes when the budget is tight. As the old saying goes, "Necessity is the mother of invention." Well, it's time to channel our inner Alexander Graham Bell.

Leave Days For Sale! Extra Holidays Up for Grabs!

Our first trick involves tinkering with annual leave days. The audacious proposal here? Let your employees buy more of them!

For employees: Extra days off? Yes, please! Flexibility has never looked so good. Also, they pay less tax and NI.

For the organisation: An unanticipated revenue stream to fatten up that skinny benefits budget (including extra NI savings!).

Envision your dedicated employees having the flexibility to take that extended trip they've always wanted, all while contributing to the benefits pool. It's a balancing act to ensure business productivity isn't compromised, but with careful management, this strategy can yield positive results.

Savings examples:

• Employee, ￡30k salary, 5 leave days bought: ￡632 a year.
• Employee, ￡50k salary, 5 leave days bought: ￡1,070 a year.
• Employee, ￡80k salary, 5 leave days bought: ￡1,727 a year.
• Business, 200 employees, 10% uptake: ~￡18,000 a year.

Pension, The Golden Goose of Salary Sacrifice

The second strategy to consider is the introduction of tax-efficient salary sacrifice schemes. Different countries will have different laws, but most will have some opportunities for you to explore. And the most "profitable"? Pension salary sacrifice, as it applies to all employees, unlike, for example, "green cars" or "bike to work" schemes.

For employees: They gain a healthier pension pot, equating to more significant financial security in the long term. Also, they pay less tax and NI.

For the organisation: Savings on National Insurance contributions? Abracadabra - more funds for your benefits programme!

Savings examples (goes up with an increased level of pension contributions):

• Employee, ￡30k salary, minimum pension contribution: ￡207 a year.
• Employee, ￡50k salary, minimum pension contribution: ￡345 a year.
• Employee, ￡80k salary, minimum pension contribution: ￡552 a year.
• Business, 200 employees, minimum pension contributions: ~￡70,000 a year.

Digging for Hidden Treasure: More Tricks Up the Sleeve

While the above strategies are daring, several other options can provide additional funding for your benefits programme:

• Vendors with "bulk-purchase" discounts: Can you merge different benefits under one provider?
• An employee referral programme: Reduce recruitment costs and get great people - it's a kind of sorcery.
• Strategic partnerships: Double the fun with co-sponsoring benefits.

See more ideas specifically focusing on Financial Wellbeing in this article by Darren Laverty .

Conclusion

Budget constraints, while daunting, need not spell doom for a great benefits programme. It might require a bit of creative thinking... But isn't that where the real magic happens?

With outside-the-box strategies like those described above, we can navigate financial constraints to deliver an outstanding benefits programme. Let's turn the narrative around and create workplaces that aren't just places of employment but hubs where employees truly thrive. Ultimately, it's all about promoting a supportive, dynamic work environment.

Surely, you have some creative solutions to budget constraints, too? I would love to hear them, so please share below! ??