How could you handle 25 new benefits effectively?

25th June 2019

New Benefits

Bike Challenge Highlights how new benefits can Increase Workloads for Payroll.

Increased workloads for payroll are often missed from the equation when identifying the resource needed for this important strategic role.

IRIS FMP’s bike challenge has highlighted the importance of understanding the additional time that now needs to be factored into a payrollers day. A growing number of new schemes that have to be considered by payroll. It means that it’s not just normal pay, overtime and bonuses, and pension contribution making up the normal pay run.

Bike Ride creates three new benefits that need to be administered

I’m quite excited about IRIS FMP’s cycle challenge.  In July over 15 people cycle the 200+ miles from Paris to Chichester in July 2019 for Huntington’s Disease. Actually, everyone in the business is excited, with employees buying bikes under our Cycle to Work Scheme, and supporters setting up Give As You Earn and Every Penny helps accounts for their pay. But hold on.

Overnight we’ve created another administrative headache for our own payroll manager, with three new schemes to administer through payroll. IRIS FMP are lucky enough to be a payroll company, so we’ve already got the systems and procedures in place. But for small business it could mean a plethora of new additional schemes and benefits. New benefits may need to be considered and administered to remain attractive to new employees and retain existing employees continues to grow.

Five new benefits now hitting payrollers inboxes

  • Car Salary Sacrifice – Better cars for lower prices with no deposit all-inclusive car packages, especially for Hybrid or Electric vehicles. Car salary sacrifice is again becoming more attractive for carbon friendly employees. Great for a company’s Corporate Social Responsibility
  • Every Penny Helps – Forgetting about your loose change in your pay packet is a great way for employees to give to charity. EPH works by rounding the pennies down your pay packet. Just a little every single month, without committing to a fixed sum to charity each month. The pennies soon add up for any charity, and give employees the feel-good factor they may be after.
  • Paid leave without a reason – now becoming big in the States, paid leave without a reason will soon be hitting these shores. And in the US, they’re backing it with legislation. A headache for any payroller.
  • Telemedicine/ telehealth – waiting times for doctors’ appointments is becoming a thorny issue. This new employee benefit may become on par with health savings accounts or healthcare benefits currently provided by employers
  • Unlimited vacation – if you thought paid leave without a reason is a headache the next big thing is unlimited vacation. Not establishing the difference between paid and unpaid absence and add in unlimited vacation and you could end up with plenty of enquiries post payroll run.

Are the increased workloads for these new benefits all too much for payrollers?

The market to attract and retain good employees continues to challenge business.  To stay competitive the employee benefits packages on top of normal pay and conditions is becoming greater.

In a poll of tech companies with employees benefits by Built In, the best companies had over 25 benefits to administer

Understanding the increased workload for payroll (or HR) teams to administer these additional benefits should be considered. Business needs to ensure the right number of people are in place and the right systems and support to deal with it.

Effective HR and payroll systems, or a good outsourcer, could help get the payroll administration of these schemes on a solid platform.