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Salary sacrifice: A HR perspective


For HRs – who would have used salary sacrifice schemes as a way of recruiting and retaining top talent – the challenge will be communicating these changes to the organisation, ensuring it doesn’t disrupt employee morale and engagement levels.

Communication

The first – and possibly most crucial – task that HRs will need to carry out is communicating with the team. It will be critical to explain why salary sacrifice changes are happening and how they are going to affect pay packets.

Be informative and transparent 

HRs need to inform employees which salary sacrifice schemes are being axed. It would be best practice to communicate this in writing, whether it be through a newsletter or company-wide email. HRs should brief line managers beforehand so that when the written notice is issued, they will be able to deal with any immediate queries from their teams. 

Get personal

The question employees will want answering is ‘how is this going to affect my pay packet?’. It is advisable to set up one-to-ones with individuals, to give them a personal insight into how the changes will affect their take-home pay.

Alternative benefits package

If your business uses a salary sacrifice scheme that is about to be scrapped, employees may expect or seek a replacement benefit to fill the gap. For HRs, offering an alternative may be a worthwhile investment, especially as benefit packages can play a key role in employee motivation and retention strategies.

Whilst it’s essential that any perks benefit the worker, it’s also important to not forget how the perk will be an advantage to the business. For example, benefits that are awarded to teams that exceed performance or to individuals that try a new challenge could motivate and inspire employees.

Although HRs will do all they can to meet the needs of the employee and the business, it is important to remember that there is no one-size-fit-all solution and that not every worker can be pleased. Instead, HRs should listen and engage with staff, as well as shop around for the best corporate benefit schemes, to ensure that changes to salary sacrifice schemes are dealt with as seamlessly as possible.

For more information download our full free whitepaper on managing the upcoming salary sacrifice changes for your business.

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