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Lump Sum: Fixing the broken model and using payments data strategically

 

 

 

On Wednesday January 20th 2021 Benivo Bites kicked off the year with Benivo's CEO Nitzan Yudan and Strategy Director Brian Friedman discussing lump sum technology innovation and the opportunity with payments big data, and Julia Onslow-Cole at Fragomen gave her weekly Immigration update.

Show Notes

The Lump Sum model is broken. When employees receive money that is theirs to spend, they change from being assignees receiving corporate benefits to consumers - spending their own money, and making their own spending decisions. The reason the current delivery model is broken is that it does not account or cater to that change. The model today for suppliers relies up on suppliers making money when your employees spend money with them or through them, and ideally with services that pay the largest referral fees.
Not surprisingly, the average uptake of these services is very low - 10%-20%. Why? First, the prices are too high with too many layers earning from the transaction. That’s why Benivo does not take kickbacks. Second, it's not how most people work in their consumer lives. The world today works by quickly researching options, reading reviews, following easy self-serve steps, as quickly and painlessly as possible. Waiting 2 weeks for reimbursement simply doesn’t work anymore. Everything needs to be instant.
The result for corporate is that Lump Sum policies succeed in simplicity but fail on duty of care, and most employees 80-90% end up moving without support, spending their money on vendors and services they research and found themselves without any guidance support or feedback loop about the experience. Benivo's approach to delivering on lump sum policies solves this problem.
The solution is to give employees tools that work the way consumer spending decisions do - driven by peer reviews, star ratings and recommendations, and that's what the Benivo employee platform offers. Whether it's housing, banking, phone services, shopping, things to do, shipping, and other lifestyle services...Benivo's platform delivers employees a support experience to support consumer spending decision making - informed by the experiences of their colleagues, all within a digital home base that guides employees through the end-to-end process with all their contacts in one place. 

 

The Immigration Update by Julia Onslow-Cole at Fragomen for January 20th 2021

  1. The new immigration system in the UK is operating well but there remains uncertainty around the advertising requirements for the new skilled worker category. This is creating more work for global mobility leaders.
  2. The lowering of the skills level from graduate to “A’ level for the new skilled worker category is welcome and increases the overseas talent pool.
  3. Interest in moving assignees from the intra- company transfer category to the skilled workers category, which leads to permanent residence, is high.
  4. There remains many issues for employers who wish to move British nationals to the EU to provide services. Whilst British nationals , falling outside the EU Travel Ban, can go to an EU country for up to 90 days in 180 days they can not work.