Flexible benefits can be perceived as costly schemes to implement, which is why creating a compelling case to convince finance directors of the merits of such a strategy such as return on investment (ROI) that can be gained from implementing a scheme will be key in securing funding for you scheme.
When constructing your business case consider using both soft and hard messages on the subject to make an impact around the boardroom table. Soft measures can include measuring the scheme’s impact on areas such as engagement, recruitment and retention, while hard measures illustrate to a finance director the amount of cash that can be saved by the business, as a good business case is not all about the cost.
There are good messages an HR director can use to help gain buy-in, such as the cost to the business if it does not implement the benefits scheme, the cost associated with not being able to recruit new talent because the proposition is not as compelling. There is a need to inject a bit of fear into finance directors through financial and non-financial calculations as finance directors all too often think of it as a cost rather than an investment so providing additional information to allow them to step away from the financials and look at the bigger picture as to what a benefit scheme can bring to the business
To support your business case there will be a need to provide data, demonstrating that introducing a scheme will be cost effective. And with so many employers already having saved cash from tax-efficient benefits, such as pensions and childcare vouchers, it has become harder to highlight the ROI necessary. If an employer has taken all of the salary sacrifice savings already from having these as standalone benefits but now wants to implement a flexible Benefits scheme, the cost savings and financial agenda is less clear. But this does not mean the savings agenda cannot be made from the introduction of new tax-efficient benefits to a scheme, such as company car schemes, computer schemes and bikes for work.
While finding the evidence to secure an investment will help to gain a finance director’s support, the way you present their case is always the key. As well as the right jargon, finance directors will also consider proposals that link to broader business objectives.
Using the right terminology is crucial, Finance Directors like to see how it fits in with the overall business strategy and increase the values of an organisation to staff. Articulating something like that will get it higher on the agenda. Think strategically as to how it aligns to overall objectives and do not think of flex as an HR operational investment. That will help win buy-in.”
Petaurum Solutions Comment
If you are looking to implement a Benefits Scheme then we have a wealth of experience in not only helping construct you business case using the tips highlighted above, but also ensuring you take your employees on the journey to ensure they are bought into your scheme and in doing so drive the right outcomes for you. Contact us to find out how you can make an employee benefits scheme deliver real value to your business
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