Workplace Schemes | The hidden cost of multiple benefit schemes - and how to fix it

By Sarah Herd, Head of Workplace, Wren Sterling

When companies acquire others in order to grow, very often they’re concerned with the headline numbers: how might our revenue increase, how can we combine our businesses to enhance our product / service / route to market, or where can we see cost efficiencies.

An often-overlooked aspect, although probably not by the readers of HR Grapevine, is the challenge of managing multiple workplace pension and benefit schemes. The monthly payroll reconciliation alone is a case itself for looking towards consolidation, but what else could be gained?

Firstly, when companies expand through acquisition, they usually increase headcount. In the workplace benefits market, headcount is your best negotiating tool with providers. By consolidating, you could unlock better rates for your business and your employees, so everyone wins. You could also unlock completely new benefits for some members. Private Medical Insurance is a good example of this. It’s tough to get competitive schemes as a micro business, but moving to a bigger company can present a much better opportunity.