4th Contact identifies four nightmares of implementing flexible benefits

FLEXIBLE BENEFITS

HR and reward managers say that the "scariest" area of implementing a new flexible benefits scheme is Inland Revenue compliancy, according to a report by 4th Contact.

The report, entitled, Staff Turnover Costs: The hidden drain affecting the bottom line, suggests that the four "scariest" areas are:

Systems security -- security of company information and systems is vital and cannot be compromised at any stage.
Payroll obligations -- organisations need to ensure payroll running is not compromised.
Contractual issues -- providing flexible benefits may alter employees’ contracts, so this needs careful handling.
Inland Revenue compliancy -- adherence to Inland Revenue compliancy and the consequences of not doing so "is perhaps the scariest area of all".

The report addresses each of these issues in turn and argues that these processes "don’ t have to be scary at all". For instance, Inland Revenue compliancy "should be a tick in the box, nothing more, nothing less," says Paul Watson, 4th Contact's CEO.

Payroll

Checking payroll obligations is a key aspect of the flex implementation, not least because if something goes wrong, the payroll procedure will most likely identify it. This could result in employees’ payments being made incorrectly. According to 4th Contact, it is essential to plan carefully and involve the payroll department in the flex implementation as early as possible to ensure their systems run smoothly.

Want to know more?

Title: Staff Turnover Costs: The hidden drain affecting the bottom line, 4th Contact.

Availability: Copies of the report can be downloaded from 4th Contact's web site at www.4thcontact.co.uk

4th Contact specialises in helping mid-sized organisations through the full online flexible benefits process and can advise on all elements of creating a flex scheme. To find out more visit www.4thcontact.co.uk

Posted 21 January 2005