Maximising the commercial returns from your employee benefits -
15.01.10
We all need our people to perform and be engaged with the organisation - and to remain competitive and successful in today's business and economic
environment, it's a given. To establish positive employee engagement in their organisation more and more employers are utilising benefits to support
employee performance and motivation. Organisations today are operating in a climate that means they need to make the most of the talent, resources and
opportunities available to them.
Yet the credit crunch and recession have tempted some employers to 'play it safe' when it comes to investing in their people; many are reluctant to acknowledge
the potential there is to easily and effectively engage and support their people in these testing times. Despite this, the pursuit of employee engagement continues
to move up the corporate agenda. The push to secure the intellectual, emotional and physical commitment of individuals and the workforce as a whole is an objective
that many businesses are realising they cannot afford to ignore.
When it comes to achieving employee engagement, the role of rewards and benefits cannot be underestimated. Of course, the reasons why an organisation decides to
implement or update its employee benefits offering will vary depending on a range of factors, including the type of business, its size, the nature of its
workforce, its organisational culture and the sector it operates in. As such, the return each employer and their employees can expect to see from their investment
in benefits and reward will be unique, although it is likely to include all or some of the following.
» 1. Cost savings - employer savings can be made through employer National Insurance contributions (via salary sacrifice and flexible
benefits savings) which are applicable to selected benefits including childcare vouchers and cycle to work schemes.
» 2. Realising best value - enabling employees to select their own benefits (through flexible or voluntary programmes) empowers them to
get the best value from the available products and solutions.
» 3. Control of benefits budgets - introducing voluntary benefits, for example, can protect employers against future rises in benefits
costs that will be met by the employee rather than the employer. And by working with an experienced benefits provider, employers can access their market knowledge
to get the best price and value for their benefits.
» 4. Recruitment and retention - benefits can have a positive impact on recruitment and retention, supporting the employer brand and
enticing individuals to want to work with you.
» 5. Consumer brand implications - contented employees will contribute to improved levels of customer service which in turn, can
positively influence your consumer brand.
» 6. Streamlining reward and benefits offerings - employers can make their benefits offering more cost effective by reviewing and
streamlining what's currently on offer. By stripping out the 'dead wood', you will give new or revitalised benefits an opportunity to thrive.
» 7. Employee engagement, motivation and performance - maximising the perceived and actual value of benefits will help employees
feel valued and therefore more engaged.
When it comes to benefits and achieving positive employee engagement, now really is the time to take action. Whether you're preparing your business for the
arrival of those elusive 'green shoots', are intent on weathering the storm, are looking to support the 'survivors' of cuts and redundancies in your business or
are facing the economic and business challenges head on, you really need to take action. According to AEGON research conducted earlier this year, private sector
businesses currently spend an estimated £70 billion a year on employee benefits and yet only 7% of companies formally assess Return on Investment from benefit
spend, while 44% of companies have no formal measures.
At a time when all company spend is under the microscope and according to an Employee Benefits Magazine survey in June 2009 '98% of HR Heads have been tasked
with looking to reduce benefits spend in 2010. There are lots of opportunities for companies to improve their processes and reduce spend.
Kudos are currently seeing an increase in client demand which is driven by the following factors:
» The need to streamline administration processes and for HR to deliver more value to the business;
» Implementation of salary sacrifice - with employers choosing how they use the savings;
» Communicating the existing benefit spend;
If you would like support in developing your corporate proposition in these areas please let us know.
Sales Development Manager