Implementing a harmonisation project in phases will enable you to clearly communicate with employees what is happening at each stage and highlight the positives resulting from each action, both for them and for the business.


Luckily, it is not essential to try and harmonise all elements of your reward and benefits package in one go. Implementing a harmonisation project in phases will enable you to clearly communicate with employees what is happening at each stage and highlight the positives resulting from each action, both for them and for the business. For example, aligning holiday years and sick pay terms may be simple or where benefits are the same moving to one provider will often carry cost advantages. Each ‘quick fix’ will also have operational benefits in terms of simplifying administration and procedures.


When changing providers for risk benefits, such as group life assurance or group income protection, special care must be taken that everyone who was previously covered remains covered. For example, with a life assurance (or ‘death in service’) scheme, the insurance provider will usually require the employer to sign a statement confirming that all employees to be covered are ‘actively at work’ at the time the policy is taken out. If one of the businesses had employees on long-term sick and these employees have been transferred to the new business, they need to be specially dealt with at the point of change, otherwise they may not be covered under the new arrangement. It is situations such as these where expert help is essential.


Level up or level down – or use flex to even things out? Where benefit levels vary between the two businesses, employers may have to choose between levelling up and levelling down. Clearly, it is an easier ‘sell’ to employees if the business is levelling up, but an overriding corporate objective is often to keep costs at least neutral. It can be difficult to keep all employees happy and there will often be winners and losers. Rather than trying to hide any negatives, clear and open communication is key. By keeping employees informed throughout the process you can help them understand the reasons that you are making changes, and how these changes will bring long-term benefit for the entire combined workforce.


One option is to use a flexible benefits scheme. This can be an effective way to harmonise benefits without anyone feeling as though they are losing out, as employees can choose to replicate the benefits they had in the old organisation. This is a useful tool to overcome the issue of previously differing entitlements - holiday allowances being a very good example.


However benefits are harmonised, a well-thought- out communication strategy can make or break the way employees view the changes and the impact they will have on the organisation’s future success. For this, communications need to be clear, open, timely and engaging. n


Company Profile


Jelf is a leading consultancy supporting businesses and individuals with expert advice on matters relating to pensions, employee benefits, insurance, financial planning and commercial finance. Jelf was founded in 1989 with a very simple vision: to build long-lasting trusted relationships with clients, and to provide them with expert advice. This remains fundamental to the way in which the business is run today.


Jelf Employee Benefits currently provides services to over 4,000 UK businesses, ranging from the very small to the very large. Over the years we have helped numerous employers with benefits harmonisation projects following corporate restructures. Our services cover all aspects of workplace pensions and employee reward, including:


• Benefits design and management


• Communications and employee engagement


• Flexible benefits • Pensions • Healthcare


• Employee protection benefits


• Workplace savings and employee financial education.


We are committed to providing outstanding levels of service for our clients, who are at the centre of everything we do. We work in partnership with them to understand their business needs and individual circumstances. From this position we can recommend bespoke solutions to mitigate risks and add value; delivering a clear return on investment.


Risk and Insurance in Private Equity and M&A 2012/13


Author Viewpoint 55


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