Benefits to last a life time

Monday 28th September 2009

Employee benefits aren't merely add-on fairy dust. Margrit Schmid Head of Swiss Life Network and CEO of Corporate Solutions at Swiss Life argues a good benefits package is a huge incentive to attract the brightest and the best – especially in an uncertain market

You want the best performance from your employees, and most employees, when motivated, will give it. But most will also know their own value, especially high achievers. Swiss Life Network’s Margrit Schmid says attracting and keeping exceptional staff means also offering an exceptional benefits package. The value of a good benefits package, she says, is designed to far outstrip its actual cost.
Not only do good employee benefit packages have a direct and positive impact on company performance and return on equity, says Schmid, “but also because employee benefit solutions will be an important part of the solution for coping with ageing populations and the financial problems of state social security systems.”
Long term benefits packages are set to increase significantly in importance. Schmid predicts corporates will need to plan for more medical and long-term cover care, “for the obvious reasons that we are all living longer and costs in these areas are clearly not yet under control”.

Increasing EU obligations
Up to now, the main impact of the EU’s important Pension Directive has been in the regulatory and legal areas; it has had little effect on actual implementation. Yet all EU countries have had to adopt the Directive into local legislation. And while some countries have tried to make the transition as clear and coherent as possible, others are coping with the situation by simply adapting existing laws. Very time consuming, not to mention confusing.
“We are convinced that occupational retirement provision vehicles,” says Margit Schmid, “will soon provide the solution for companies wishing to group their European pension fund obligations. By organising their plans out of one location using a single vehicle, companies choosing us as a partner will also benefit from increased efficiency and economies of scale.”

Innovation and value – wherever you are
Global employee benefits are complex and diverse. Most companies can’t justify the internal staff needed to deal with employee benefit issues – especially when employees are often scattered around the world and legal requirements are constantly in flux.
“At the same time,” acknowledges Schmid, “the need to be transparent and comply with disclosure obligations is increasing. So most clients want to be able to rely on a partner who can take care of all these matters. Swiss Life Network is such a partner.”
All Swiss Life Network clients receive an annual report with comprehensive information on their employee benefits solutions to share with their partners around the globe, says Schmid. “This data, together with advice and information on local plans and circumstances, is provided without additional charge, thus adding to the financial advantages clients’ experience through the Swiss Life Network.”

Outsourcing benefits advantages in brief:
- Lower running costs can be achieved thanks to economies of scale.
- Regulation and legislation issues are handled automatically.
- Better management information.
- Leading edge technology and processes.
- Standards of service are easy to benchmark.

For more information, visit www.swisslife-network.com

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