More than a third of employees admit perks and benefits are amongst their top consideration before accepting a new job, according to a survey of more than 1000 people by Glassdoor.
If you’ve been keen on offering tech for employee rewards and benefits some tech benefits – perhaps a smartphone or a tablet, you might be unsure if it’s the right move. We wanted to look at the myths when it comes to technology and smartphone benefits, so we asked Steve Prevett, Marketing Director of Personal Group’s Let’s Connect to tackle the common misconceptions head-on.
Myth 1 ‘Salary sacrifice is no longer available for technology’
Untrue. Salary sacrifice schemes for technology and smartphones have always been available and our schemes have been in operation since 2000. The latest tax change in April 2017 means a different tax treatment and a simpler process for employers to implement.
Myth 2 ‘Savings aren’t available any more’
Untrue. Employees still make savings in National Insurance (and pension contribution where applicable) and there are no end of scheme payments. Employers can build in an administration rebate and some organisations also make pension contribution savings too.
Myth 3 ‘It’s too risky, staff may leave without paying for their equipment’
Untrue. We run hundreds of schemes every year for a wide range of organisations—the largest having 140,000 staff. The incidence of non-payment is so small compared to the huge benefits these schemes deliver that no client has ever stopped running a scheme due to risk. We can also offer an insurance solution to mitigate against non-payment if required.
Myth 4 ‘The schemes are time consuming and difficult to administer’
Untrue. Following the tax changes in 2017 the schemes are easier than ever to administer, with a ‘once only’ P11d entry and simplified payroll administration. We provide a fully managed service at no cost to ensure your time is spent on your day job, not running our scheme.
Myth 5 ‘Everyone has a computer now so there’s no demand’
Untrue. Our schemes are as popular as ever with excellent take-up rates for an ever-widening array of products. The rate of evolution and advances in technology products like PCs, tablets and smartphones means that employees always have demand for the latest, improved equipment for themselves or their family.
Myth 6 ‘These schemes encourage staff to get into debt’
Untrue. There are strict limits on what employees can spend, and staff are generally cautious regarding how much salary reduction to commit to. Also, by providing a safe, low-cost method of paying for equipment, you are protecting staff, especially the lower paid, from having to use high interest credit or ‘payday’ loans.