Benefits with a £100K bonus
M+W Group is a global leader in the design, engineering and construction of high tech facilities and major complex projects. Operating in 30 countries worldwide, the company’s UK headquarters is based in Chippenham, Wiltshire.
Benefits administration was a serious challenge for the business until they chose PES to deliver an online solution. What they didn’t know is that we would also save them £100,000 in insurance renewal fees.
What were the challenges?
- Too much administration – managing benefits offline was a time-consuming, complicated task with over 260 employed staff and multiple benefit providers.
- Low awareness and benefit take-up – employees didn’t know what benefits were available to them. In fact, some didn’t even know they had Private Medical Insurance (PMI) or life assurance.
- Duplicate policies – the business had two existing pension schemes which weren’t delivering the best return. The HR team also wanted to introduce salary exchange (or sacrifice) for pension provision.
How did PES help?
We moved M+W Group’s benefits online. They had recently introduced electronic payslips, so happypeople seemed like a natural fit. Its simple, intuitive interface was easy for staff to engage with, and the system slashed the administrative burden for HR.
“When we launched happypeople, we’d taken on around 400 new recruits in the previous two years. Under the old system that would have been around 400 hours of administrative time for an HR team of two, but we cut it by at least half thanks to happypeople. The system also helps us reward and recognise achievements, especially around health and safety which is so important to our industry.”
A benefits audit
As an expert benefits broker with fully authorised subsidiaries, PES was perfectly placed to review existing regulated and non-regulated benefits. Following a market review of pension providers, a new salary exchange pension scheme was introduced and integrated into happypeople.
The other existing benefits (cycle to work scheme and childcare vouchers) were moved online, with childcare vouchers included as part of the happypeople package. In addition, M+W employees now enjoy a fantastic online discounted shopping benefit which also comes at no extra cost to the business.
£100K PMI renewal savings
Over a three-year period, our subsidiary PES Health saved M+W over £100,000 in PMI renewals. These fantastic economies led the company to invest in a health cash plan in year two, another great way to keep staff fit and well. By offering access to low-cost health and wellbeing treatments, M+W encouraged healthier behaviours among employees.
This justified the introduction of an excess on the PMI policy, increasing PMI savings to over £59,000 in year two. Further savings the following year brought the total PMI premium savings to £101,000.
The health cash plan itself cost just over £24,000 – but this was less than the reduction in the PMI premium through the excess, so a great investment. This contributed to additional PMI savings in year three.
Life assurance savings
And the savings don’t stop there. A review of M+W’s life assurance allowed us to increase the multiple of salary covered for all employees. Our streamlined administration meant that we also reduced the life assurance premium by £63,000.
PES aligned all the regulated policies to begin from April each year, making budgeting much simpler for M+W.
A new benefits brand
Our communications team helped to create a memorable benefits brand, improving employee engagement. Activities included:
- a focus group to nominate internal benefit ‘champions’
- a colourful, branded desk drop to launch happypeople
- a webinar to introduce employees to the platform
- user guides for each benefit and a happypeople handbook
- communications workshops to demonstrate the benefits on offer and give a personal introduction to the providers
- ongoing, regular communications updates.
What was the result?
With back office processes managed entirely by PES, benefits are now easy to see, access and deliver. Timely management information and a dedicated employee helpdesk make the job even easier.
Employee engagement has also been high:
- 79% of employees registered with happypeople when it launched.
- 88% of employees had registered by the end of the year thanks to great communications.
- 98% of employees registered for online discounted shopping.