Simon Jones, Director of Corporate at Wren Sterling, explains what this means for Finance Directors, HR Directors and anyone else responsible for in-house employee benefits strategy and more importantly, what can be done to alleviate the impact of a large annual fee on the balance sheet.
“When paying for group risk benefits advice in the past, it was definitely convenient for companies to see the fees swallowed up by commission. However, the Retail Distribution Review (RDR) changed that and mandated that all services were to be paid for through ‘fees’ rather than ‘commission’, which made the cost much more visible. As a result, employers have been receiving one-off annual bills without having been forewarned by their advisers, and so have been turning to us for advice.”
“As an employer, this is the point at which it is definitely worth reviewing your entire employee benefits strategy for the appropriateness of the policies you have in place and challenging your consultant to earn their fees by recommending the right mix of products from across the market. Question whether everything you have in place is necessary for achieving the goals of the strategy and whether engagement is as expected. If you’re challenged to justify your spend, it is certainly worth considering financial education workshops to make sure your employees are taking the maximum possible value from your investment or private client consultants for your senior team – something Wren Sterling can provide.”
If you would like an experienced employee benefits consultant to conduct a Group Risk Audit to identify savings, including your GPP, please fill out our simple contact form below.