Investing in your employees is investing in your business. This can help you to take your business to the next level. A more qualified and happy employee delivers a better end product to your client and that may be the competitive edge that you need in the tough business environment of today.
You can structure a group scheme for employees consisting of risk cover, retirement provision and free medical advice, legal aid, trauma counselling and emergency assistance. Even a small business with 5 employees can consider this.
The monthly payment is through a payroll deduction from the employee and an employer contribution, resulting in a partnership. Both parties will also qualify for an attractive income tax deduction.
Protection
A range of group risk solutions or ‘insured benefits’ can be provided for your employees. From life protection to critical illness, disability and funeral cover, there are good-value protection products available that are simple for your employees to understand.
Investments
Choose a product provider with a strong track record in managing investments for institutional customers with a range of investment portfolios. Choose specialists that can blend investment knowledge with banking, actuarial and consulting skills to provide you with cost-efficient, risk-managed and intelligent investments.
Fund administration
Choose a product provider that can provide a comprehensive fund and risk administration service with a proven history. They must have an internet-based administration system that can provide business owners with real-time access to fund information and can give fund members access to benefit statements and investment summaries.
Moral pressures
Few employers can bring themselves to bid farewell to a retiring employee or dismiss the spouse of a deceased employee with only a few well-chosen words and no monetary payment. In addition, the effect on the morale of the workforce of doing this could be quite disastrous.
Economic pressures
There are many examples, where, left to their own devices, most employees have made inadequate retirement provision for themselves. As a result, an employer who wants to assist employees at retirement could end up financing it almost entirely alone. It is far better to build up a fund in advance by regular monthly payments to a retirement fund. Such payments are generally tax deductible so the cost is to some extent subsidised by the State. Attraction and subsequent retention of key personnel is a major economic motivation for any business. Any employer who fails to provide a competitive and comprehensive range of attractive staff benefits will soon lose key staff members.
Good luck with your business! You form the core of our very frail economy….
E-mail: desmond.sinclair@liblink.co.za
