Navigating the Cost-of-Living Crisis: Maximising Employee Benefits for Employers

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In recent times, the cost-of-living crisis has garnered significant attention for its impact on employees’ financial wellbeing. However, it is crucial to consider how this issue is affecting employers and their ability to provide competitive employee benefits packages. The Autumn Budget in November last year, Labour’s first since reclaiming power, has exacerbated matters with the increase in employer National Insurance (NI) from April 2025. As an employer, navigating these challenges requires strategic thinking and a proactive approach to ensure that your workforce remains engaged and motivated.

Below are some practical tips for you to maximise your employee benefit offerings, where required, and make your money stretch further in the cost-of-living crisis. Cartlidge Morland can support you in all of the areas below.

1. The value of your benefit offering

Many employees do not fully understand and therefore cannot fully utilise the benefit offering. Communication is key to help promote these valuable staff benefits.

A good benefits package can help recruit and retain high-calibre staff and promote well-being in the workforce. By offering attractive benefits, employers can save the time and cost associated with recruitment and foster a positive work environment that supports employee retention and satisfaction.

2. Optimise Your Benefit Schemes

To help mitigate future costs, you may also wish to offer a tiered benefit level, where possible. There are a number of ways to structure this. As an example, for some benefits it may be possible to give members the option to increase their benefit level at an additional cost to them.

Restructuring in this way has the dual benefit of both providing a cost saving to the employer whilst at the same time providing an increased benefit level to employees who would value it.

3. Utilise salary exchange on your pension benefit

Salary exchange can help mitigate costs and the resulting employer NI saving can be used to either boost your employees’ pension savings or the NI savings can be re-invested back into your business. If you are currently using salary exchange and pass all or part of your NI savings onto employees, it would be prudent to re-evaluate this in light of the employer NI increase from April 2025.

By leveraging this strategy, you can enhance the long-term financial security of your workforce while managing costs effectively.

4. Implement a Group Life Assurance Scheme

Establishing a group life assurance scheme is a highly valued benefit for employees and a relatively inexpensive benefit for employers. Typically costing around 1% of your payroll expenses, this benefit provides essential financial protection for employees and their families in the event of unforeseen circumstances.

Offering such a benefit can enhance your overall employee benefits package and demonstrates your commitment to employee well-being.

5. Utilising cash plans

Cash plans are cost-effective yet highly valued plans that can offer a reimbursement to everyday healthcare costs such as dental and optical care.

It is worth noting that cash plans focus more on routine care so are distinct from Private Medical Insurance which covers unexpected medical treatments or surgeries. Cash plans can also be used to complement existing Private Medical Insurance cover.

Cash plans are a valuable part of a cost-effective benefit package.

6. Regularly Review Benefits Levels

It is essential to control and regularly review the level of benefits your schemes provide to contain costs effectively. By assessing the effectiveness of your benefits offering and making necessary adjustments, you can ensure that your benefits package remains competitive and aligned with the evolving needs of your workforce.

At Cartlidge Morland we would promote annual reviews to ensure the coverage and the benefit levels of the schemes offered remain appropriate and fit for purpose.

7. Leverage Auxiliary Benefits

Benefit schemes often come with valuable auxiliary benefits that can enhance the overall employee experience. These may include counselling, confidential mental well-being support, retail discounts, and access to private GP services.

By leveraging these additional benefits, you can provide employees with valuable resources to support their physical, mental, and financial well-being.

In conclusion, the cost-of-living crisis presents unique challenges for employers in maintaining competitive employee benefits packages and structuring them in a cost-efficient way. By implementing these practical tips and strategies, you can optimise your benefit offerings, support employee well-being, and demonstrate your commitment to a motivated and engaged workforce. In navigating these challenges, you can make a positive impact on employee retention, satisfaction, and overall organisational success.

For more information call us today on 0207 709 5560 and ask to speak with one of our employee benefits advisers.