OUR BLOG 

 
Below are a number of posts containing useful tips and insights from the Directors of Auxil Limited, acknowledged industry experts and trusted advisors in the fields of Health & Safety and Human Resources, which will hopefully trigger some thoughts or ideas. 
 
Why not join the conversation? We would love to hear your views… 

Posts tagged “Employee Retention”

With the ongoing cost of living crises it is important that employers look for ways to provide employees with cost savings that have little or no cost to the employer. 
 
One way of achieving this is through salary sacrifice schemes, well known schemes include childcare vouchers and cycle to work, there are also many other uses for salary sacrifice, in this article we cover some of the essential considerations when implementing an electric car leasing scheme. To implement a salary sacrifice scheme the employer needs to ensure the following: 
• Change the terms of the employee’s employment contract and employee needs to agree to this change. 
The changes should be clear and understandable. 
• The change in salary cannot be applied to the salary retrospectively 
• The changes should be shown on the employee’s payslip 
• Check with HMRC that the scheme has been implemented correctly and is approved 
• Consult with pension providers on the effect the salary sacrifice will have on pension contributions and 
particularly if the employee is near retirement 
• Ensure that participation in the scheme should not reduce an employee’s cash earnings (hourly rate) to 
below the National Minimum Wage 
• Clarify how other pay and benefit elements will be calculated e.g. overtime, pay rises, pensionable pay, 
ideally this should be notional pay (before the salary sacrifice came into effect) 
• Make it clear that the reduced salary level does have to be used for the calculations for an employee’s 
statutory payments (such as statutory maternity, paternity, shared parental, adoption and sick pay) 
UK employees can expect to receive a 1.1% real salary increase in 2020, compared to the 1.2% increase seen in 2019, according to research found by XpertHR. 
The median basic pay award edged up to 2.8% at the end of the quarter, 0.3 percentage points higher than the average seen in every other rolling quarter in 2019. However, XpertHR warned that the increase should be viewed with caution as its analysis looked at pay settlements awarded between 1 August and 31 October, traditionally a period where few pay reviews are concluded, the underlying picture is of organisations increasing pay by 2.5% across 2019 as a whole. 
 
Employers are in the dark about the rates they would need to pay their employees on the national minimum wage and national living wage from April 2020, as the general election has delayed the national minimum wage announcement usually scheduled for this time of year. 

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