01 Nov 2018

Need to know: ways to use voluntary benefits to build a more compelling reward offering

More than half (55 per cent) of employers have increased salaries this year to tackle staff retention problems, according to the CIPD’s Labour Market Outlook (summer 2018). In terms of reward, salary will always be one of the major drivers for recruitment and retention, yet in this increasingly competitive economic environment, it’s important for employers not to lose sight of the role that benefits can play in giving them a competitive advantage. The cost effective nature of voluntary benefits and ease with which they can be implemented, means they are an attractive option in this respect.

Although anyone can offer voluntary benefits, going above and beyond the norm to offer perks that really resonate with your staff can make a big difference to your overall reward package and, in turn, your ability to attract and retain the best people. In fact, according to Glassdoor’s Employment Confidence Survey (Q3, 2015), 80 per cent of employees would choose additional benefits over a pay rise, while 60 per cent report that they are a major factor in accepting a job offer. Here are our suggestions to ensuring your voluntary benefits help build a more compelling reward package.

Support employee lives outside of work

Voluntary benefits schemes often focus on helping employees stretch their salaries with things like the weekly shop, via discounts at supermarkets and high street retailers. However, lifestyle focused benefits have enjoyed a notable growth in recent years as more and more organisations look to make a tangible difference to their employees’ quality of life.

These benefits include deals and offers on anything from cinema tickets and days out with the family, to help with childcare. Wellness products and experiences are also hugely popular at the moment and can include discounted gym memberships, healthy lunch options, discounted bike rentals and spa days, and the positive effects of supporting employee wellbeing are well known.

Make benefits personal

It has become easier than ever for employers to utilise support tools such as cost calculators and recommendation engines, as well as helping employees select benefits to build and manage much more personalised benefit portfolios. Gone is the one-size-fits-all approach and choice is now king. This is important given the growing diversity of the modern workforce.

Lots of generalisations are made about the difference between baby-boomers and millennials, however much of this thinking is supported by evidence. Green and ethical issues, for example, are becoming increasingly important to millennials – three quarters of them would consider an employer’s social and environmental commitments before taking a job with them, according to the Millennial Employee Engagement Study (2016). This means that, for that demographic, having access to green and ethical benefits (cycle-to-work schemes, for example) will become increasingly important.

Offer something that money can’t buy

More and more voluntary benefits packages are now underpinned by a concierge service. These have evolved from being an exclusive service focused on high-flying, busy senior executives struggling to balance the demands of work with their personal or family lives, to something that is being enjoyed by employees across the board.

Employers can offer a dedicated team, either with an on-site desk, or contactable by phone, to assist with a range of lifestyle-focused services, including booking travel arrangements (flights, cars and hotels) and a range of personal services such gift sourcing and organising a cleaner. But where these services really come into their own is with sourcing and booking tickets for anything from theatre performances, restaurant reservations and sporting events. The best concierge services offer exclusive access to sold out events – something that money can’t buy.

Think about user experience

Organisations need to make sure that voluntary benefits are quick, easy and intuitive to use. That’s particularly true for employees who have grown up as digital natives and expect a certain level of user experience. It’s important to cater to different shopping behaviours and allow for discounts to be delivered quickly and easily to your employees, which is why mobile apps and online portals are now the norm for most voluntary benefits schemes.

Employers can go above and beyond the norm, by making the most of technology. Some voluntary benefits programmes, for example, will utilise push notifications based on shopping preferences. It’s also becoming increasingly popular for employers to offer voluntary benefits on a range of dedicated portals – eg wellbeing or family – alongside other helpful information and benefits options.

This article was provided by Xexec.