Introduction To Employee Benefit Schemes In The UK
Employee benefit schemes have become a critical part of the modern workplace. For employers, especially in the construction sector, offering the right benefits is not just about meeting expectations. It is about attracting skilled workers, retaining experienced teams, and ensuring the wellbeing of your workforce.
In the UK, employee benefit schemes come in many forms. Some are regulated insurance policies. Others, such as those provided through industry agreements or trust based models, operate on a discretionary basis. Construction firms may face additional complexity when aligning benefit provision with project based employment, varied job roles, and sector specific requirements such as those outlined by TICA and ECIA.
A well designed scheme can help protect employees against the financial impact of sickness, accidents, or death, while giving employers reassurance that they are meeting their obligations. But navigating the options, particularly for medium sized firms, can be difficult without expert guidance.
This guide is designed to help you make informed decisions by outlining what to look for in a scheme, how sector specialists like Welplan operate, and what makes a scheme truly valuable to both your business and your people.
What Construction Employers Need to Consider
When selecting an employee benefit scheme, construction employers face a unique set of challenges. The nature of the work is physically demanding, often site based, and carried out under short term contracts. This makes the right benefits not only a competitive advantage but a practical necessity.
Here are some of the key considerations for employers in the sector:
1. Workforce Structure
Construction businesses often employ a mix of skilled trades, apprentices, and support staff. A one size fits all scheme may not reflect the varied needs and risk levels across your workforce. Look for providers that allow you to tailor cover by grade, trade, or role.
2. Industry Agreement Compliance
If your business is part of a national agreement such as TICA or ECIA, you are required to provide certain minimum benefits. These include sick pay, death benefit, and in some cases, disability or accident cover. Non compliance could affect your standing with clients or unions.
3. Project Based Employment
Short term contracts and changing project locations mean employees may join or leave your business frequently. Choose a scheme that offers flexibility and simple enrolment processes to keep administration manageable.
4. Contribution And Cost Control
Balancing cost with quality is critical. Consider whether contributions are fixed or variable and what level of administrative support is included. Transparent pricing and clear documentation are essential for budget planning.
5. Claims Process And Turnaround Time
Delays in benefit payments can cause stress for your employees and operational disruption. Look for a provider with a strong track record of fast, fair claims handling and accessible UK based support.
A good scheme should work with the realities of construction employment, not against them. It should protect both your team and your business reputation.
Typical Components Of A Scheme
A well structured employee benefit scheme does more than meet basic obligations. It helps employers retain staff, improve morale, and manage unexpected absences with minimal disruption. For construction businesses, the most effective schemes include a combination of the following components:
Sickness And Accident Benefit
This provides income replacement when an employee is unable to work due to illness or injury. While Statutory Sick Pay offers limited cover, industry backed schemes like those administered by Welplan deliver enhanced weekly payments for extended periods, often up to 52 weeks. Some schemes also cover accidental dismemberment or permanent total disability.
Death Benefit
Death in service benefits provide financial support to an employee's family in the event of their death. This benefit is typically offered as a fixed lump sum and is payable regardless of cause. In many schemes, additional amounts are provided for accidental deaths, particularly if they occur while travelling to or from work.
Permanent Total Disability Cover
In cases where an employee is permanently unable to return to any form of work following an accident, some schemes include a lump sum payment. This offers long term financial support and recognises the severity of the situation.
Tailored Grade Based Cover
Many schemes allow employers to set different benefit levels depending on employee grade or trade. This ensures costs are proportionate to risk and supports a fair and structured approach to workforce welfare.
Optional Add Ons
Some providers offer additional services such as health assessments, mental health support, or injury rehabilitation. These extras can enhance your benefits offering and further support employee wellbeing.
By understanding what is typically included, you can assess whether a scheme meets your operational needs and sector obligations.
How Welplan’s Offer Compares To Commercial Insurers
Many construction firms consider commercial insurance providers when selecting an employee benefit scheme. However, there are important differences in how these providers operate compared to a specialist like Welplan.
Discretionary Trust Model vs. Insurance Policy
Welplan operates discretionary trust schemes, which means decisions are based on trustee discretion rather than rigid policy terms. This provides flexibility and fairness, especially in complex cases. In contrast, commercial insurers follow strict underwriting rules and policy exclusions, which can result in declined claims even when the need is genuine.
Sector Knowledge
Welplan was created to serve the construction industry. This specialism is reflected in how schemes are structured, how claims are handled, and how benefits are aligned with national agreements like TICA and ECIA. Insurers often provide generic cover that may not account for the specific risks and employment patterns in construction.
No Medical Underwriting
Welplan’s schemes do not require medical checks or declarations for enrolment. This makes it easy to include new starters and avoids delays. Commercial insurers may require health questionnaires or impose waiting periods before cover begins.
High Payout Rate
Over 99% of claims made through Welplan are approved. This reflects a commitment to support rather than reject. Insurance providers tend to have more restrictive criteria, leading to more declined or contested claims.Service And Simplicity
Welplan provides UK based support and a straightforward claims process managed by a team that understands your business. Many insurers rely on automated systems or outsourced call centres, which can add complexity and reduce personal service.
For employers who want predictable, reliable cover that aligns with their workforce and industry obligations, Welplan offers a practical and people first alternative to traditional insurance.
The Value Of A Sector Specialist Provider
Choosing a provider that understands the construction industry is not just a preference. It is often the difference between a scheme that fits and one that frustrates.
Welplan has supported employers in the building engineering and construction sectors since 1960. This long standing focus brings significant advantages for employers looking for tailored benefit solutions.
Alignment With National Agreements
Welplan works closely with industry bodies including ECIA, TICA, and BESA. Its schemes are designed to meet the welfare benefit requirements set out in national agreements, giving employers peace of mind that they are compliant and competitive.
Understanding Construction Workflows
From shift based work to short term contracts and site specific employment, construction presents operational challenges that general providers may not fully understand. Welplan’s schemes are built around these realities, offering flexible start and stop dates, simplified enrolment, and clear contribution tracking.
Tailored Scheme Design
One size does not fit all. Welplan helps employers design benefit packages that reflect the size, structure, and budget of their business. Cover can be tailored by role, grade, or project, with options to adjust levels of benefit as business needs change.
UK Based Service And Support
Welplan provides direct access to a dedicated support team. There are no call scripts or overseas helplines—just knowledgeable staff who understand the sector and can respond quickly to your needs.
Trust Based Decision Making
Operating as a discretionary trust allows Welplan to focus on supporting members, not protecting shareholders. This results in a more responsive, flexible, and people centred approach to claims.
Working with a sector specialist ensures that your employee benefit scheme is not only technically sound but also practically effective in a construction environment.
How To Evaluate Benefit Quality, Speed And Service
Selecting the right employee benefit scheme is not just about comparing headline figures. It is also about how the scheme performs when it matters most. To make an informed decision, employers should look closely at three core factors: quality of cover, speed of payment, and service standards.
Benefit Quality
Assess whether the scheme covers the essential areas. This includes sick pay, accident cover, death in service, and permanent total disability. Look at the weekly amounts paid, the maximum duration of cover, and any exclusions. A good scheme should provide financial support that aligns with real world costs, particularly for employees in physically demanding roles.
Speed Of Claims Processing
Delays in benefit payments can lead to stress for employees and administrative pressure for your team. Ask potential providers how long it typically takes to process and pay a claim. Welplan, for example, aims to settle most claims within two working days once documentation is received.
Service And Support
A reliable scheme should come with accessible and knowledgeable support. Look for UK based service teams, clear documentation, and a simple process for submitting claims. Personalised service and a proactive approach to resolving queries can make a significant difference.
Evidence of Track Record
Check for testimonials, case studies, or performance figures. A high claims approval rate, such as Welplan’s track record of over 99 percent, is a strong indicator of a provider that supports employers and employees alike.
Ease Of Administration
You should not need a dedicated team to manage your scheme. Good providers offer user friendly processes for enrolment, data submission, and claims, backed up by clear guidance and responsive help.
A strong scheme delivers on its promises with minimal effort from your team. By evaluating quality, speed, and service together, you can choose a provider who adds value and peace of mind, not paperwork.
Compare Or Request A Benefits Overview
Choosing the right employee benefit scheme is one of the most important decisions a construction employer can make. It affects how your workforce feels supported, how your business handles risk, and how you stand out in a competitive labour market.
Welplan offers specialist schemes that are trusted across the construction and building engineering services sector. Whether you need to meet the requirements of a national agreement or simply want to enhance your existing cover, we can help.
Request A Free Benefits Overview
We will walk you through the options, answer your questions, and provide a tailored summary of what would work best for your team.
Compare Schemes With Confidence
If you are reviewing existing cover or considering a switch, let us help you understand the differences in cost, service, and scope.
Contact Us at 0800 195 8080 or email welfare@welplan.co.uk