REWARD
Let’s talk benefits Julie Lock, commercial director at Advanced, talks all things benefits, including what the most popular types are, and how to make the most of them W e all like being rewarded for a job well done. It’s also no secret that a company’s rewards and
There’s increasing evidence of the growing importance of having a clear structure around employee benefits and rewards in place within your organisation – a survey by Aviva 2 found that 48% of people stated a desire for some form of wellness benefit when assessing an organisation. This suggests that people’s priorities have shifted to place a greater emphasis on work-life balance and well- being. Your employee benefits structure is the perfect opportunity to demonstrate your organisation’s commitment to meeting these ideals. What are the four major types of employee benefits? Traditionally, employee benefits have fallen into four main categories: l medical – most commonly medical insurance and dental care packages. Mental well-being is also becoming a priority, with accommodations being made for workplace counsellors and rewards, such as days off being offered, to encourage employees to unwind l life – life insurance policies and time off. Many organisations have begun to fold other benefits into this category, such as gym memberships or access to on site leisure facilities l retirement – pension schemes and retirement funds l disability – disability insurance, as well as transport allowances, such as on-site parking and access to disability-appropriate company cars. These traditional benefits remain foremost in many employee’s considerations: Aviva found that annual
leave still matters the most, with 44% of those surveyed identifying it as one of the workplace benefits of greatest interest to them. Other traditional benefits, such as childcare, parental leave and flexible hours, also rank highly. How to make the most of employee benefits Although it’s a given that almost every organisation will provide some form of benefit or reward scheme for their workforce, there still remains the question of how effective management in each organisation is at communicating benefits, and what steps can be taken to drive this process forwards. One in five employees feel there are no benefits on offer to them, with 19% of people surveyed expressing a lack of interest in benefits that were offered, as they felt they weren’t relevant to them. Learn about the importance of employee engagement and staff turnover 3 . The next most common reason for not taking advantage of benefits is a lack of information provided regarding what’s available to employees within their workplace. This seems to suggest there are two major areas in which organisations need to place their focus if they wish to ensure employees are taking advantage of the benefits offered. Firstly, the importance surrounding relevancy. The research would suggest that many feel that, outside of paycheques and annual leave, they’re receiving no additional benefits. While their employers may feel differently regarding what reward structures are in place, this still highlights a disconnect
benefits schemes go a long way towards attracting talent and retaining their staff in the long run. Pay forms a key cornerstone of any organisation’s rewards structure and is probably one of the most dominant requirements of employees when it comes to prioritising how they want to be rewarded for their hard work. At Advanced, we believe your benefits and rewards structures represent one of your biggest assets in helping your organisation stand out from the pack when it comes to attracting talent. We wanted to take a deep dive into the benefit of benefits and examine how businesses are reshaping their rewards structures to meet the requirements of the new working world. What are employee benefits? Essentially, employee benefits are any form of non-wage-based compensation. These benefits are designed as a supplement to an employee’s salary and can range from dental cover and health care insurance to perks on travel, such as company cars. Research by Willis Towers Watson 1 found that 75% of employees are more likely to stay with their employer due to the benefits package, with another study finding that 69% of those surveyed would choose one job over another, based on the benefits offered. Clearly, comprehensive benefits packages are foremost in people’s minds when choosing which organisation is the right fit for them.
| Professional in Payroll, Pensions and Reward | November 2022 | Issue 85 46
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