Voluntary benefits (also known as affinity benefits) are those products and services that are available through an employer for purchase by employees, usually at a discount, out of their own taxable income or sometimes via salary sacrifice arrangements - therefore enhancing motivation and/or recruitment and retention.

Just over one quarter of employers offer their employees access to a voluntary benefits plan. Under such an arrangement, employers give their staff the opportunity to purchase from their post-tax income third party goods and services at a discount rate. At present, research commissioned by the CIPD reveals that they are popular with larger, private sector employers. However, we have identified that such a scheme would be popular within the small and medium enterprise market if positioned correctly. Companies can either organise and publicise the discount arrangements themselves, or outsource it to a third party - often the benefits of internally negotiating and administering such a scheme heavily outweighs the costs of outsourcing it.

Love2reward have recently launched an off-the-shelf voluntary benefits package designed specifically for the SME market. The research has revealed that companies with up to 350 staff want to provide voluntary benefit schemes for their employees, but very often find the cost prohibitive. With the scheme, employers can now provide a comprehensive range of products and services at either little or no cost.

The Love2reward scheme can be designed and tailored with the employer's branding to appear as the employers own scheme. Alternatively access is via a ‘generic' site and can be linked to an employer's own intranet. For any employees who do not have access through a conventional online portal, a benefits booklet is available. We have designed the scheme to be completely accessible to, and inclusive of all. It can be quickly set up for use by employees and is completely flexible in terms of content.

70% of our existing customers fall within the 1-350 employee category and there is a distinct lack of low-cost scheme such as ours available in the market today. Unlike conventional reward and benefits providers, which make their income from charging a substantial fee to run such schemes on behalf of employers, Love2reward principally benefits from getting more of our gift vouchers and cards into the market - therefore the fees become a less significant part of our cost base and we pass this benefit onto the employer, so everyone wins.

Why should small businesses use Voluntary Benefits Schemes?

  • The offers and discounts are genuine savings not available elsewhere.
  • Voluntary benefit schemes are often viewed as ‘nice to have' but are rarely used, with Everyday Benefits, the provision of discounted vouchers for food and shopping means that people will actually use the scheme.
  • The per-seat management fees are typically lower than other providers.
  • The optional booklets are cost effective and can be used to help launch and communicate the new scheme.
  • It allows a company, particularly an SME, to introduce a great benefits programme for a very low investment - useful for morale in these difficult economic times where benefits are being reduced and pay frozen.

For more information please visit www.love2reward.co.uk/eb2