Question: How can I ensure that my company is getting good value for the money we are spending on our group personal pension (defined contribution) scheme for our employees?

Bob Fraser, senior wealth adviser at Towry Law in Belfast, replies:

We would advise all companies, but particularly small to medium sized enterprises which run defined contribution schemes, to ensure they get the most appropriate corporate advice and to check that their schemes are meeting the needs of their employees. In too many cases neither is happening.

Defined contribution schemes are a popular method of pension provision, but much of the corporate pensions industry is still largely focused on selling pension schemes rather than providing the overall client-focused service proposition that is needed by both employers and their employees.

To ensure you are getting good value for money, you should ask yourself the following questions:

• Is the advice you receive on your pension scheme impartial and fee-based consultancy, rather than commission-based product selling?

If your corporate adviser earns money by selling you products then they will have a financial incentive to sell you more products, or higher charging products.

This may not be the most appropriate advice for you.

Ensure you use the services of a fee-charging adviser who will have no incentive other than providing you with the best advice.

• Do you and your employees have full transparency of charges?

• Have you provided your employees with suitable investment options, especially with regard to default funds?

• Are your scheme administration practices of a high standard and do you have robust governance procedures?

• Is there an effective communication programme in place for employees?

You can offer the best pension scheme in the world, but this is of little benefit if your employees do not understand and appreciate this.

Effective engagement of employees is essential in achieving value for money for all employee benefits spend and so serious consideration has to be given to this.

If you are happy with the answer to all five of these questions, then it is likely you are doing a good job in trying to get value for money for your pension spend.

However, the vast majority of employers will need to address at least one of these issues.

Question: How can I ensure training in our company is giving us the best return on investment — especially in today’s climate?

Gillian Esquivel, the founder of Cimaomega training specialists, replies:

True evaluation starts before the programme begins. Firstly, look at the wider business targets, ask your people how the “training” would add value to the business, question the reasons why the training is required. Get line managers and participants involved in the pre-needs analysis and remember that involvement equals commitment.

Together identify the key priorities for the business for the next 12 months and set the expectations before the programme is designed or even begins. Get the “where we are now” meaningful measurements related to the programme theme and “where we need to be”. Think about tangible (£’s) and intangible benefits. This will assist in justifying a solid business case for the learning programme.

This ensures the course is designed for a very definite outcome: it is specific to the individual and company needs and not a “bums on seat” exercise.

Thirdly, and equally as important, follow-up after the workshop/programme, ensure there is support, coaching and/or mentoring within the workplace to allow for the new found knowledge to be implemented and utilised.

Continually review the actions against the original expectations to see if improvements are found. Make sure there is clear measurement of the actions taken and if improvements are not being found then action must be taken. Keep asking did the training give back more than it cost?

Question: Can you give me any advice on issues to be aware of around buying a franchise?

Laura McElroy from Invest NI’s business improvement services team, replies:

The most common franchise format is one by which the owner of a business (the franchisor) grants a licence to another person or business (the franchisee) to use their business idea.

This kind of arrangement is strictly controlled by the franchisor who will set out the terms under which the business must be run.

There are advantages and disadvantages to running a franchise. On the positive side you get a business based on a proven idea with a recognised brand name. You’ll also get help to set up the business, a manual telling you how to run it and ongoing advice.

However, you also need to be aware of potential downsides. Often the costs of running a franchise are high as you will continue paying royalties to the franchisor. Also, as the franchise agreement usually includes restrictions on how you run the business, you might not be able to make changes to suit your local market. The most important aspect of buying a franchise is getting the franchise agreement right. This agreement typically covers the term of the franchise, the territory covered by it, the fee structure, details of the support you will receive, and the restrictions on what you can and can’t do.

It will also set out what happens if you can’t continue running the business for whatever reason. My advice would be not to sign an agreement, or pay any fees or deposit, until you have taken legal advice from a solicitor.