Does your benefits package meet the needs of your employees?
Benefits
The return of investment associated with a well-designed reward and benefits programme can be substantial, and the positives extend far beyond the financial, as Kelly Gajjar, Senior Manager at Isio, explains.
As the cost of doing business increases, budgets are under increasing scrutiny and FDs are expected to justify every pound spent in the face of significant and persistent economic headwinds. For HRDs, they need to ensure that, despite these pressures, their reward and benefits programmes continue to deliver what it set out to achieve, for everyone across the business.
Most reward and benefits programme evolve over time. The problem is that, in reality, many programmes are still unfit for purpose. And there are three broad reasons for why they can underperform.
First, one size does not fit all. As workforces continue to become more diverse, the need for an inclusive set of benefits to represent all employees is essential. One of the key findings from our employee benefits research, for example, commissioned in conjunction with YouGov1, revealed how some benefits packages designs might unintentionally differentiate against certain groups of employees (read the full reports here).
*In conjunction with YouGov, Isio surveyed 7,674 private sector employees in June 2023 on a range of issues surrounding employee benefits and personal finance concerns. Responses for don’t know or prefer not to say answers have been removed, unless explicitly shown.
Of those surveyed, just 23% felt their current package meets all their needs, with levels of satisfaction highest amongst older, married homeowners of White ethnicity. Satisfaction levels dropped to 16% and 15% respectively for Asian and Black respondents.
Everybody’s background is different, and benefits programmes and policies must adequately serve all demographics to foster inclusion.
Second, employers can also experience challenges with employees not valuing their benefits or indeed understanding how they work – even when a benefits programme has been specifically designed and communicated to be market-leading, generous, and well-managed. Employees need to be empowered to have confidence to utilise what is on offer to them through guidance and education.
Finally, most employers are managing cost pressures, limiting available budgets to enhance or refresh benefits packages. Expectations naturally evolve – particularly post-Covid – adding an additional complexity to creating a benefits package that’s modern, competitive and cost-effective.
Making an impact
Given these challenges, employers could be forgiven for feeling that there are simply no feasible options to enhance a benefits programme or to support employees in a compelling and valued way.
But the good news is that by recognising there’s an issue, and then taking steps to fix it, organisations can do so much more with their existing employee benefits budget. A scheme that’s inclusive and focused on employee wellbeing can help achieve core strategic objectives, including retaining, attracting and maintaining a motivated and healthy workforce.
If a benefits package is truly understood and valued by employees then it may well be seen as equal to – or even more important than – a pay rise.
So how to get there. Savvy companies regularly ask themselves which benefits are delivering the most value to their employees. But getting the relevant data and constructive feedback to validate hunches with stats isn’t easy. The top priority, therefore, is getting to the heart of what a benefits programme needs to achieve. There needs to be clarity and consensus on what a relevant scheme would look like: i.e. what exactly the programme needs to achieve for an organisation and its employees – whether that’s talent retention or improvements in overall employee wellbeing for example.
Knowing your workforce and what they value is fundamental. This can be achieved using a range of tools from interactive workshops and interviews to strategic data gathering. Employers can then confidently analyse what is valued across each employee group and, most importantly, highlight what’s missing. It’s a helpful prompt to ensure third party providers are delivering an optimal service and maximising any potential value-adds.
And robust communication underpins the entire strategy. A recent graduate can only take advantage of financial support to save for a property deposit if they know it’s available to them, for example. A benefits scheme can only perform – and provide true value – with consistent and efficient engagement with all employees and stakeholders.
That’s why Isio has developed the 3D Benefits Review. It’s a transparent, targeted and cost-effective way to assess how your benefits package is structured and pinpoint how it can be improved. What’s more it’s quick to implement, with minimal requirements for client time.
Our experienced consultants will get to the heart of your benefits scheme, clarifying its purpose and setting out practical options for change backed by data and our own industry-leading analysis. We’re fully independent too which ensures our advice is entirely focused on supporting employers to create future-proofed and flexible schemes that are inclusive, centred on employee wellbeing and value for money.
HR and benefits teams have an ever-growing list of competing priorities. Let our 3D Benefits Review cut through the noise by flagging the areas that will deliver the biggest returns.
To find out how the Isio 3D Benefits Review can help you maximise value from employee benefits, please contact Kelly Gajjar.
Benefits
3D Benefits Review
Helping employers identify whether the benefits offered to employees are valued and present opportunities to improve them.
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