Adding extra value to its employee offering can single out a business as the employer to work for. If your company has not considered introducing an employee benefit scheme, then perhaps it’s high time it did…
With the economic climate still tough and the outlook still bleak, it’s more important than ever to value staff. In the light of 0% pay rises for many workers, job cuts and the rising cost of living, morale is not surprisingly subdued. Not knowing if your job will still be there next month, or in three months, is a depressing state of affairs that can spill over into the workplace and affect performance.
Introducing a range of employee benefits, however, could help improve the situation as well as attract new staff. Being proactive and letting employees know the company cares about their well-being, is a strong motivator; it could also supply a positive point of difference between an organisation and its competitors.
According to Nick Courtney from Edenred: “Research shows that an engaged employee is a productive one, therefore it is important for businesses to consider how to retain, develop and recruit the right talent, as well as what their reward strategy is.”
It’s not the non-existent pay rises that are going to keep people or attract new blood, so companies need to provide something else. “Offering a range of benefits to employees makes the employer attractive to new recruits and enhances the remuneration package of existing staff, which is particularly important at a time when many are paying more tax and not receiving a salary increase,” says Kuljit Kaur, head of business development at The Voucher Shop.
Glenn Elliott, managing director of Asperity Employee Benefits, adds: “For many organisations, benefits and not salary will be the focus of reward discussions for the next couple of years while we ride out the current economic storm.
“Employers will increasingly look to motivate and engage their workforce as never before to harness productivity, ease workplace issues and survive and thrive in tough economic times.”
One size fits all?
People have various likes and dislikes, with numerous factors, including age, having an impact on taste, so when it comes to employee benefits this certainly needs to be taken into account.
“Employers should be aware that different employees will be motivated by different things. While older staff members might place childcare vouchers high on their wish lists, younger employees may well respond better to subsidised gym memberships, company nights out or retail vouchers,” says Iain McMath, managing director of Sodexo Motivation Solutions.
Demographics and lifestyle should also figure at the planning stage, and a variety of products offered. These don’t need to be expensive, for example, introducing an element of flexible or home working for staff with families, or taking part in a salary sacrifice scheme to buy a bicycle and encourage cycling to work. The key lies in the ability to target the audience effectively.
“Benefits which are relevant and valued by employees are a key part of the employee engagement strategy. Choice and flexibility are what make benefits relevant and valued,” comments Elliott.
Richard Davies, head of employee benefits at P&MM, agrees. He says: “Establishing the desires and needs of the workforce and then meeting them is the first way to motivate through employee benefits.”
Tell them about it
Once a scheme is implemented, whether it be discount vouchers, holiday trading, childcare vouchers or salary sacrifice, people have to know about it. “The key to engaging employees through a voluntary benefits programme lies in promoting and communicating it effectively in a way that is enticing and fits the employee profile,” explains Davies.
Courtney continues: “Businesses need to look at the communication processes behind their employee benefits and examine how they are delivered and explained to staff. Businesses have to make their benefits programme compelling enough for staff to want to be involved and implement new, creative methods to encourage staff to engage with it and understand it.”
In short, if the communication falls down, so will the scheme. Information should be clear and up to date so staff find it simple to take part. They should be encouraged to participate by regular updates on the programme and the benefits it offers, via internal magazines, leaflets, newsletters, video or the company intranet, for example. “Roadshows are also a good tool, providing a forum where individuals can ask questions,” says Kaur. “The number of employees signing up should also be monitored, and open days with competitions and prizes could be used to encourage more employees to take up the scheme.”
It shouldn’t take long for an employee benefits programme to bed in and become part of the corporate landscape among staff. For the company, the pay off should be a happier, more motivated workforce that really feels part of the business. It’s the ideal opportunity to gather support around company goals and vision, promoting a positive working environment. Indeed employers may ask themselves why they didn’t go down the employee benefits road sooner.
