Turning rising benefit costs into improved employee wellbeing

An established engineering company with 3,500 employees had been an Isio pension client for several years. While their core employee benefits were in place, it became increasingly clear that their wellbeing provision was underdeveloped in comparison to market expectations. A comprehensive review of their existing arrangements revealed a particular concern around the partner’s Death in Service Pension (DISP) insurance, which had historically formed part of their benefits package. Over time, the DISP market had contracted significantly while premium costs continued to rise, creating an unsustainable and inefficient benefit for the employer. 

To address these issues, we explored an alternative design that would deliver greater value both financially and for employees. By replacing the DISP arrangement with additional life assurance based on enhanced salary multiples, the company stood to achieve substantial savings. The modelling and market assessment confirmed that this change would result in approximately £2.4 million in insurance premium savings, demonstrating a compelling case for restructuring the benefit. 

Following employee consultation to ensure clarity, transparency, and support for the changes, the company proceeded with the transition from DISP to expanded life cover. With the savings generated, leadership chose to reinvest around £400,000 into improving employee wellbeing. This allowed the introduction of a comprehensive Health Cash Plan (HCP) for all employees, offering coverage for everyday healthcare needs including dental and optical costs, physiotherapy, health screening, virtual GP services, employee assistance, private consultations, and diagnostic tests and scans. The new offering proved to be a well‑received addition, significantly enhancing the organisation’s wellbeing support and providing a modern, accessible benefit that resonated with employees. 

The remaining £2 million in savings were retained by the business, supporting broader strategic priorities. The company also outlined plans to invest in Isio’s benefits platform once the newly implemented changes had fully bedded in, enabling a more seamless and digitally driven employee experience in the future. Through a focused review and targeted redesign, the engineering company was able not only to reduce cost but also to elevate its wellbeing provision and strengthen the long‑term sustainability of its benefits programme.