1 July 2014: JLT Employee Benefits (JLT) has released its latest quarterly 250 Club survey of the top 250 UK firms. The objective of the present edition was to assess the impact of auto-enrolment on workplace benefit offerings. The survey found that auto-enrolment has prompted some firms to overhaul their entire benefit offerings as they looked to integrate auto-enrolment pension into the overall benefit mix.

JLT says that the auto-enrolment process has encouraged employers to review the way they deliver benefits, leading an increasing number of employers to recognise the added value of benefits platforms in terms of support for pensions (and especially auto-enrolment requirements), increased employee engagement and understanding of the true value of their packages and automatic renewal information, saving time and money for organisations). As a result, they are keener to invest in this type of solution.

59% of respondents used a benefits platform to manage auto-enrolment, 25% of whom indicated they used a dedicated employee benefits platform. Over two thirds of employers (67%) stated that their view of how employee benefits platforms can be used had been changed following auto-enrolment, with over half (51%) having gone for full flexible benefits on their employee benefits and a further 12% indicating the dedicated employee benefit platform they use means they will be introducing flexible benefits for all employee benefits in the future.

The survey also found that cost saving was not the main motivation for employers to review benefits at the same time as the auto-enrolment implementation. Only a very small minority (6%) of respondents removed the link between ancillary benefits (such as Group Life and Private Medical Insurance) and pension scheme membership in order to reduce costs; over three times as many respondents (19%) reporting that they had increased the link to some extent.

According to the survey, the majority of employers strive to ensure employees understand, appreciate and value the benefits on offer to them, given their considerable costs, with 55% of organisations reporting they are ensuring employees are aware of benefits and 45% making sure they value them. In addition, 44% of organisations also use benefits to attract and retain staff, showing that one of the "traditional" reasons for having employee benefits, such as income protection and private medical insurance (PMI), still hold true.

JLT also aimed to ascertain how the improving UK economy has impacted benefit programmes offered by companies. For almost one third (32%) ancillary benefits have been provided on top of pay rises as usual, whilst 10% indicated that these benefits had been provided in the place of pay rises. A further 11% had provided these improvements on an employee voluntary basis. Almost one in five (19%) respondents indicated that their organisation had considered extending coverage offered under benefits to all their employees, with a further 17% stating that coverage could be extended to a limited number of employees.

Employers would be much more inclined to extend cover to employees if they were able to obtain a government incentive, with 71% saying they would consider extending cover to all employees and 68% saying they would consider extending cover to some employees. Three quarters (75%) of those respondents who said they had removed the link between ancillary benefits and pension scheme membership due to auto-enrolment, also stated that they would investigate extending coverage if they could obtain a government incentive.

Nick Boyton, Principal, JLT Employee Benefits said: "Auto-enrolment has prompted companies to think more in terms of total rewards packages, rather than just narrower salary definitions.

"As the economy gains momentum, employers are conscious they must now look at different ways of differentiating themselves in the battle for talent, rather than simply offering larger pay packages. They also actively communicate on auto-enrolment and benefits to ensure they are understood or appreciated by their employees. However, unsurprisingly many employers are only happy to do so provided they breakeven in spending terms. This is why Government incentives can have a substantial influence on benefit offerings."

-- ENDS --

About the JLT 250 Club

The 'JLT 250 Club' is a consumer group of around 250 leading companies who have agreed in advance to complete short YouGov surveys on topical pension issues. All organisations in the JLT 250 Club have at least 500 full-time employees and most members employ more than 3,000 such staff. Also, nearly 100% are in the private sector (limited company or plc). In terms of the individual respondents, the vast majority are middle managers and above.

Notes to Editors


Enquiries:

JLT Employee Benefits: 

Jennifer Warner
jennifer_warner@jltgroup.com
+44 (0)1344 464 582

Smithfield Consultants:

Andrew Wilde
awilde@smithfieldgroup.com
+44 (0)20 7903 0661
 Ged Brumby
gbrumby@smithfieldgroup.com
 +44 (0)20 7903 0674

About JLT Employee Benefits

JLT Employee Benefits is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) administration, flexible benefits, healthcare, benefit communication and financial education.

JLT Employee Benefits employs over 2,200 professionals throughout the UK and in 2013 had revenues of £172m in UK & Ireland.

Pensions and employee benefits companies within the JLT Employee Benefits group of companies include: JLT Benefit Solutions Ltd, Profund Solutions Limited, JLT Wealth Management Limited, JLT Investment Management Limited and Independent Trustee Services Limited. JLT Employee Benefits is part of Jardine Lloyd Thompson Group plc.

www.jltgroup.com/eb

About Jardine Lloyd Thompson Group plc

Jardine Lloyd Thompson is one of the world's largest providers of insurance and employee benefits related advice, brokerage and associated services. JLT's client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.

JLT is quoted on the London Stock Exchange and owns offices in 39 territories with some 9,000 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.

distributed by