Group scheme insurance provides operational efficiency. In the case of compulsory schemes, purchase of cover and administration are simplified with a generic cover implemented through relatively simplistic procedures.
An effective employee benefits programme will assist in promoting staff loyalty. The provision of employee benefits over and above a standard salary package increase an employees' perceived value as a member of the company promoting their position as a valued member of the workplace. This assists in increasing and promoting staff loyalty and retention. Increases in staff loyalty and retention in turn can assist in promoting staff morale.
Including a benefit package within an employee's salary package can also act as an effective remuneration-negotiating tool reducing pressure on salary increases. An example of this is by extending the range of benefits and providing coverage for family members such as spouse or partner and employees' children.
An effective medical package can also help to minimise productivity loses. By enabling the life assured to receive treatment for major illness or diagnostic procedures when required rather than waiting for referrals through the public system will return them to work and relieve the costs of providing cover during their absence.
The beauty of the group product, particularly compulsory business is that it allows the company to retain control in that they choose the benefits (base plan or Specialist & Tests option, extension to family members, etc) offered and ensure that the employee is adequately and suitable covered.
One of the many advantages of group schemes is that they increase company loyalty and morale, thereby reducing recruiting and retraining costs which far offset any employer contributions. Other general advantages are:
- They help you compete for staff by making your company more attractive. Relieves moral obligations to give aid to families on death or disability. Easy to administer and costs are moderate and can be accurately estimated Premiums paid by the employer are deductible producing substantial tax savings.
A medical scheme will reduce time off for staff on waiting lists for operations, and distraction and danger caused by those niggling injuries. Injuries arising at home or on the sport field will be treated immediately and not converted into work accidents which will increase time off work and ACC claims and levies.
A disability and life scheme will provide security for both employees and their families in the event of major work accidents ensuring their goodwill and providing the immediate cash. The lack of this scheme will invite the family to sue the company which could put it into receivership.
A company super scheme ensures that skills and experience built up over years is retained and staff retires with benefits and a positive attitude towards the company. The super scheme also eases the pain of any redundancy if it is released as part of the settlement. It can also be designed to lock in staff so that they loss benefits if they leave the company earlier than planned.
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If you are interested in setting up a group scheme, please complete the following out the following form: