Will salary sacrifice changes damage employee engagement?
23 January 2017
More than a quarter (27%) of employer respondents to a survey conducted by Jelf Employee Benefits believe that the limitations on salary sacrifice arrangements will damage employee engagement and employee relations.
Its 2017 Jelf employment survey, which surveyed approximately up to 350 employers across England and Wales, also found that 47% of respondents do not think that Chancellor Philip Hammond has given employers enough time and warning with regards to the changes, which will limit the range of benefits that attract tax advantages when offered through a salary sacrifice arrangement (from April 2017).
The research also found:
- 24% of respondents will need to make adjustments to their benefits package in light of the salary sacrifice changes.
- 75% of respondents do not believe employees will fully understand the limitations of the Lifetime Isa (Lisa).
- 26% of respondents expect some employees to save into a Lisa instead of a workplace pension.
- 90% of respondents believe the introduction of new saving options in the Budget 2016, such as the Lisa, increases the need for financial education in the workplace.
- 89% of respondents want greater emphasis and encouragement from the government towards the provision of employee benefits targeted at carers.
- 83% of respondents do not think their organisations are aware of all employees who act as carers in their non-work time.
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