Building engagement and performance via employee benefits - some tips

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Overview

There’s been plenty of research to show that levels of employee engagement in the UK are alarmingly low. The government has even set up a taskforce of HR experts to look into this important issue. Many businesses already appreciate the link between rewards and benefits and employee engagement; one in four employers we surveyed rated benefits and rewards as a key driver in engaging workers in their organisation. The recent industry research outlined by Employee Benefits magazine (in their 2011 Benefits Book) reflects this, naming staff engagement and appreciation as key priorities for employers.

But, in my experience, too few organisations have got to grips with ensuring that they gain maximum commercial return from their investment of money, time and resources to improve engagement. So what should they be doing?

When businesses develop and deliver a benefits programme, they need to ensure it’s properly planned and constructed. For instance, key initial questions are who exactly are the people the company wants to engage and what are the right benefits to provide? Salary sacrifice programmes can include tax-free childcare vouchers and cycle-to-work schemes. Flexible benefits options could be a package of discounts and offers to help reduce the cost of living which often involve leading brands such as Apple, Halfords and Virgin.

Employers need to move away from a ‘one size fits all’ approach and take into account demographics and age when looking at their employee benefits. Different people, at different stages of their life, for different reasons, have different requirements. As they progress through life they start thinking quite differently from how they would have 20 years ago - and understanding those different needs and lifestyles is essential. Moreover, these benefits need to be aligned to the corporate objectives in order to deliver a measurable impact.

Communication is probably the deciding factor between the success and failure of an employee benefits strategy. It’s vital to encourage a high level of take up and create awareness and appreciation of what’s on offer. But many companies do not address this adequately. A survey we conducted showed that only 20% of employees questioned said they fully understood the value of their benefits. That is because all too frequently many companies fail to allocate sufficient resources to communicating to the employees the value of what is available to them and how to acquire these benefits.

Line managers are a valuable communication channel and a great way to cascade information to employees via team briefings, one-to-one sessions or induction meetings. Regular meetings with line managers will ensure they are on board with the benefit strategy and informed of new developments.

When planning the communication method, it’s important to consider the structure of a company and the existing communication channels that can be utilised to get the message across. Businesses have to make their benefits programme compelling enough for staff to want to be involved and these can be achieved via face-to-face communications such as drop-in sessions or discussions groups or online using the intranet and social networks – particularly effective where employees are based in different locations or are field based.  Our research shows that over half of companies surveyed (53%) named their intranet as the most effective tool to communicate a benefits scheme.

Developing a total reward culture plays a central role in any communications strategy as well as enhancing employee engagement. A total reward culture focuses on the value of the entire benefits package available to an employee as well as communicating what being part of the business is all about, and the value of this to the employees of the business.

The value of the benefits and salary combined can be detailed via a total reward statement (TRS). Many incorporate rewards and benefits which have a cost attached to them, as well as those that cannot be quantified for all employees. This may include the impact of flexible working for individuals or the benefits available from an on-site subsidised canteen. The most effective TRSs also include details of the benefits that employees could apply for, should they wish, as well as details of non-financial benefits, such as training.

A benefits strategy should not remain static but develop accordingly to meet the changing business climate, the objectives of the organisation and needs of staff. Evaluation can feed into this development process as well as help build the business case for continued investment and support.

Looking ahead, technological developments such as mobile devices and phones will play an increasing role in the communications and delivery of benefits. Ultimately though, it will be employees and their requirements that will drive the evolution of the benefits market. As more organisations successfully build the trust of their people and effectively communicate the value of the benefits on offer, staff will be better engaged and motivated to deliver the best for the business.