Revealed: The real value of financial advice as an employee benefit

If you read our recent look at three surprising but profitable reasons to improve your employee benefits, you’ll know that the package you provide your employees matters.

The salary and pension you offer can help you retain your most experienced staff, attract top new talent, and build morale. But there are other benefits you might offer too.

One in particular could prove hugely valuable to your employees, as well as to you, as an HR manager, finance director, or CEO: financial advice.

Keep reading to find out why.

Financial advice as an employee benefit could help your staff make the most of the perks you offer

At Parker FA, we can help to ensure that your business’s employee benefits package includes the best possible pension scheme for your employees. This is a valuable employee benefit, but to make the most of it, your staff will need to be fully engaged and understand exactly what it offers. This is where financial advice comes in.

Expert guidance ensures your staff benefits are communicated and explained effectively, and that your employees fully understand the options open to them.

These options might include:

• Switching an existing pension pot into sustainable funds, helping an employee align their money with their values

• Signing up to, and then learning how to navigate online portals, helping to boost employee engagement

• Opting into a salary exchange scheme and understanding the pros and cons, as well as any contract alterations this might entail.

Regulatory or legislative changes can occur too. With a trusted team of professional advisors on hand, these can be explained jargon-free and promptly, ensuring your employees are always kept in the loop.

Expert guidance could relieve pressure on key staff and allow you to focus on your business

Financial advice ensures that your employees have all the information they need to make informed choices.

This helps you and your business in several ways:

1. Financial guidance can help you find the best possible pension scheme for your employees

Let’s say that your company works in the electric vehicle industry. You’ll likely have staff that are passionate about sustainability and clean energy. But, if you’re stuck with an older workplace pension scheme, it might not offer the flexible fund choice your staff need.

We can help to ensure that your company pension fund reflects your company values. This might mean searching the market for a scheme or fund that doesn’t invest too heavily in fossil fuels, or that has a wide selection of ESG fund options. This is something you might not have time for.

Your employees will be able to invest their pension in a way that aligns with their (and your company’s) values.

2. Expert help relieves pressure by answering questions that would otherwise land on the desk of your leadership team

You work in a fast-paced business and your time is precious. You need to focus your energies in the right areas.

With experts on hand, you can defer to us to answer the tricky questions that might otherwise build up in your HR or finance department. This relieves the pressure on you and your senior leaders, allowing your team to focus on what they do best.

We recently looked at three reasons to put a salary exchange scheme in place now and spoke about the direct financial benefits to your business. Adopting such a scheme can be simple if you have the know-how and the time. If you don’t, outsourcing the job to professionals might be the answer.

3. It could reduce your liability where complicated regulations are concerned

As fast-paced as your business environment might be, remember that the financial landscape is ever-changing. This means that rules, regulations, and legislation change all the time.

From Labour’s recent Budget announcements to the FCA’s new rules around sustainability disclosure requirements, your HR team and finance directors might have their work cut out just keeping up. If you’re not a financial services expert, then consider deferring to one.

Get in touch

If you have any questions about the value of adding financial advice to your employee benefits package, speak to us now. Please contact us to talk about what we can do for you and your business.

Please note

This article is for general information only and does not constitute financial advice, which should be based on your individual circumstances.. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. Workplace pensions are regulated by The Pension Regulator.

The value of pensions and any income from them can fall as well as rise. You may not get back the full amount invested.

It is important to note that salary sacrifice is not suitable for all employees. Employees’ pre-tax salary will be reduced. This may affect their entitlement to State Benefits.

Note that salary sacrifice arrangements should be appropriately documented with the employee signing an agreement letter unless it is written into the employment contract. In addition, you would need to ensure that your employee payslips can display the amount of the salary exchanged.

Levels and bases of, and reliefs from, taxation are subject to change and their value will depend upon personal.