By Jeanette Wheeler, HR Director, MHR International
Historically, if an employee was asked about the most common benefits packages that they’ve encountered in the world of work, they were likely to highlight company cars, health or dental insurance and reward schemes. In recent years however, this has grown to include other benefits to appeal to new generations in the workplace, from everything to an early Friday finish to pool tables for use at lunchtime. More significant benefits such as sabbatical leave, internal secondments and additional days off for charity days are now also increasingly more common.
This however comes at a cost, and the challenge for employers is ensuring that financial stability remains as they invest in new employee benefits. The other difficulty for organisations is that many employees may not have a full appreciation of the value that these benefits provide, especially in the case of them being provided as standard as opposed to being part of a flexible benefits package. Where the value is clear, employees could even perceive them in a negative light due to the extra tax involved, or the value may not even be clear because it doesn’t appear on a payslip.
Financial wellbeing and resilience post-pandemic
When it comes to adapting benefits packages, financial resilience and wellbeing need to be top-of-mind for businesses. There are good reasons why organisations should take employee financial resilience seriously as 67% of employees now want more financial wellbeing support from their employers. A PwC survey in the US this year found employees undergoing financial stress are less productive, while recent MHR research found that 47% of employees believe being honest about their mental health would damage their career meaning putting a figure on the scale of the impact employee stress at work has is impossible.
For employees that need immediate assistance, short-term help could allow them to better manage their finances and steer clear of debt. However, it’s also important to consider that they require longer-term coaching and guidance so they can rationalise their finances and plan ahead. Financial wellness programmes and coaching sessions that address more than pensions are a genuine benefit to employees of all age groups and also have the convenience of being able to be offered online.
Analysing benefits packages
Employers shouldn’t rest on their laurels when it comes to how employees perceive their benefits packages. This is reflected in the fact that an IBM survey of 19,000 workers across nine countries in January found that fewer than half (47 per cent) rated their employer well for their compensation and benefits package.
With the pandemic creating wholesale changes in what employees expect from their employers, organisations need to take fresh look at the rewards and benefits packages they offer. Employers who continue to invest in benefits that employees don’t use, or value are wasting their money.
For companies that continue to offer remote or hybrid work, cheaper gym membership may not prove as appealing if the employee is a reasonable distance from the gym itself when at home. This also has ramifications on subsidised travel and food, childcare vouchers, workplace car parking or end-of-week office get-togethers if employees spend part of the week away from the office. Whatever benefits employers provide, they also need to be accessible to employees, regardless of location.
Now more than ever, employees are looking for tangible and meaningful rewards. They’ll be better disposed towards an employer that actually makes an effort to find out what they want. Organisations with the technology to facilitate regular dialogue between managers and employees and gather an accurate sense of workers’ requirements will always have the upper hand. If, for example, nobody under the age of 40 uses a financial advice service, then employers should be able to find out why.
Incorporating employee wellbeing into a holistic approach
A holistic approach is crucial for businesses reviewing their benefits packages and needs to take physical and mental wellbeing into account. Research now reveals that employees place more emphasis on benefits with a health and wellbeing aspect. IBM found that more than a quarter (26 per cent) of employees who changed jobs during the pandemic said they did so because they wanted more benefits and support for their wellbeing.
Offering comprehensive health insurance and critical illness cover are effective benefits in this area. To improve mental health, employers should consider offering sophisticated employee assistance programmes that provide support for personal problems, expert counselling and behavioural therapy.
Protecting the value of a benefits programme
The world of work has changed so much since the early 2020 and as we head towards 2022 there is no better opportunity for employers to take a second look at their benefits packages than now. It’s evident that employees who feel listened to and ultimately valued are more productive and less likely to leave their role. Employers that aim to ensure they remain on top of their employees’ needs require an effective HR system to be in place to facilitate meaningful dialogue. Those that offer the benefits demanded by employees will find it easier to attract the best candidates.
