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Rewarding innovations: HRZone talks ‘Save to buy’ with HSA

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Terraced Houses
For many young workers the pensions crisis is a hurdle only to be jumped when the bricks and mortar challenge has been met; something that healthcare company HSA Group recognised and responded to by way of their save to buy scheme, a plan that has already helped several of its workforce get a foot on the ladder.

By Annie Hayes, HR Zone Editor



The property boom, fostered by remarkable tax breaks has made many home-owners considerably richer. With house prices still climbing in some regions if not flat-lining in others, the predicted slump has become yesterday’s news and for many renters the outlook looks a little bleak with salary to mortgage calculations failing to add up.

With over half, 59%, of their staff under the age of 40 and many finding pensions a remote concept; the healthcare provider decided it was time to look at a reward scheme to help those looking to get across the threshold and into their first home.

Louise Hardy, HR Projects Adviser told me: “We have 1,230 staff located in Andover, Bristol, Leeds, Manchester and Reading, all areas where house prices are soaring. Currently two-thirds of staff contribute to the company pension scheme but our internal research showed that buying a house was the most important issue for many of the younger workers.”

In Andover, Hampshire, where the company has its headquarters, the average house price is more than £150,000 plus.

The scheme was implemented last July and although the tax and national insurance implications make it less attractive then a pension’s saving, the take up has been encouraging.

“Employees that save 3% to 6% of their net monthly salary will get that figure matched by HSA. We take their deduction straight from salary and they can choose the account the money goes to. The matched funds are not released, until we receive written confirmation that completion is cleared from their solicitor or a licensed conveyancer proving the money is going towards a home purchase,” comments Hardy.

When the scheme was first launched, Mark Day, HSA’s Human Resources Director remarked that the plan was unique in offering real and tangible assistance, making home ownership feasible.

“The average first time buyer pays nearly £94,000; 25% take four to six years to save and one in five relies on parents for help covering the cost of a deposit. We all want the option of our own home but sadly too many of our young employees are simply priced out of the market,” Day explains.

And it’s not only staff that benefit. HSA Group has seen real results in terms of improved loyalty, motivation, retention and talent acquisition.

Hardy tells me that the save to buy scheme has helped the business compete for staff in Basingstoke, an area where competition for good people is tough.

“Traditionally there has been quite a high turnover amongst customer service workers. This scheme has helped us manage that.”

The generosity doesn’t stop there either. HSA Group workers are entitled to a day off when they move house and a day off when their child goes to school for the first time, with a maximum of three days per child, per school.

The HSA Group was awarded 13th position in this year’s Sunday Times Best Companies to Work for list and was especially commended by the paper for its healthy attitudes towards work-life balance.

Over 75% of staff at the organisation report to enjoying a happy balance between the two.

Hardy explains: “Cash is great at the start of any job but as time goes on there are more important factors that need to be taken into consideration. Any good reward scheme needs to take account of what employees want. New ideas help too!”

The take up of the save to buy scheme is currently 3-4%. As people reach their goal they transition out of the scheme and HSA Group then hope they can concentrate their savings efforts into a pension plan.

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Annie Hayes

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