EXERTIS has bagged two major salary sacrifice deals with John Lewis Partnership and Morrisons, which are set to roll out early this year.
The distributor predicts sales of its salary sacrifice schemes will soar by 300% this year, with further deals in the pipeline. John Lewis will roll out its salary sacrifice scheme with Exertis UK in April, whilst Morrisons’ scheme will launch in June.
The schemes are expected to generate up to 8,000 mobile connections from John Lewis staff and around 5,500 connections from Morrisons. Employees at both retailers will be offered the choice of smartphone contracts with either EE, O2 or Three.
The deals will see Exertis supply and manage both retailers’ salary sacrifice schemes. The tax efficient scheme allows employees to sacrifice a portion of their gross salaries, before tax and NI contributions, to pay for a mobile phone and contract with handset. Since the deduction is made before tax and national insurance is calculated, employees can pay up to 42% less for their contract deals.
Fridolin Engel (pictured), Exertis UK’s Conect sales director, said the company’s mobile salary sacrifice scheme, known as Mobile Select, had grown rapidly since its launch in April 2013, with a number of key clients on board.
‘We have big plans for 2015. Our salary sacrifice proposition will see huge growth in 2015. We are virtually unique in the market so we are in a very strong position and a lot of companies are interested in signing up to the scheme. We are expecting growth of around 300% this year.’
He added: ‘It is popular with employees because they get to save so much on their mobile phone contracts and, yes, employers save on National Insurance contributions, but the real attraction for them is that it raises employee satisfaction and staff retention rates.’
Exertis UK is also intensifying its focus on the IT sector this year, working closely with Microsoft to provide airtime and Lumia hardware to the IT giant’s largest resellers. Engel said the company is working with five of Microsoft’s top 17 Licensing Solution Providers, who provide managed service solutions for large companies and public sector bodies. He said the five were all keen to add mobile to their portfolio.
Engel said: ‘These are all IT companies selling apps and Microsoft licences and a managed service wrap. All five have the right DNA, they have good relations with their customers, they speak regularly to them and they sell a breadth of products, not just licenses.’
Exertis UK is offering three tiers of service to Microsoft LSPs via its Conect airtime platform, ranging from a full support service with the Conect team managing the transaction, to a partial support service, and a third tier of support, which sees Microsoft Partners running a fully owned service, supported by the Conect Portal.
Engel said: ‘We are looking at opportunities with significant public sector bodies and big enterprise customers. We are the only ones doing it. We have all the networks on board, our own MVNO – these guys are all Windows converts and their customers are all Windows houses. They are already selling services such as Office 365, so talking about the Lumia range is a natural evolution in the conversation.’