Employee benefit spend squandered

UK SMEs are wasting up to £950m a year on their employee benefit spend according to figures from Towry Law.

The firm say employers could save an average 15 per cent on their benefit spend, based on an analysis of typical client savings achieved by the firm.

Towry says many companies facing pressure on payroll could limit their need to make redundancies by reviewing their expenditure on employee benefits.

The firm says savings can be made by employees across all areas of group pensions, life and healthcare.

Pan Andreas, head of corporate clients, Towry Law, says: “Employee benefits costs typically represent about 7 per cent of total payroll. This is a huge investment and any comparable expenditure would be under constant review from financial directors. However, for some reason, this level of scrutiny does not always apply to employee benefits.