To use an old cliché, the UK benefits landscape is constantly evolving. This comes as no surprise to benefit practitioners; for some it will be a bonus, for others a chore.
Notwithstanding ever-present change, it is encouraging to note that tradition holds true as regards benefit programmes and why organisations provide them. The majority of respondents consider such programmes to be an effective tool for recruitment (76%) and retention (81%). However, the need remains to engage, communicate and refresh benefits programmes, otherwise we risk our consumers, the UK workforce, not appreciating practitioners’ efforts.
While the traditional drivers of why organisations provide benefits remain, what has changed is the desire among UK employers to provide a benefits programme. With only 12% of HR professionals feeling they had to provide a programme, the overwhelming majority are clearly in favour of benefits provision, with 72% stating they do so to support employees’ health and wellbeing. Although 50% of respondents consider that the funding of programmes will remain broadly the same going forward, 29% consider that funding of benefits will, in future, be a shared burden.
Benefit programme design has also evolved, from a prescriptive model, heavily influenced by pension scheme design, to a model which is increasingly listening to employees, acknowledging and accepting the influences and expectations of its workforce. There is a desire to improve employee engagement, with 67% stating this is helping them shape their benefits strategy, and 71% believing that more targeted communication is the future to improving their benefits strategy.
Consumers are expecting a richer, more tailored HR experience. We can all benefit by delivering it to them. New HR technology offers an alternative to traditional employee surveys, allowing dynamic information gathering, prompting employees to provide feedback on issues as they arise. A comprehensive HR portal that continually gathers data, offers ongoing insight into the benefits employees actually use and value, giving more immediate feedback for a communication campaign’s success.
A lot has been said regarding the demographics of the UK workforce, and it will be interesting to see how programme designs evolve in the years ahead. At present, 27% are adapting their programme to accommodate the ageing workforce, with 46% acknowledging the challenges multi-generational workforces bring. Understanding a diverse or distributed workforce allows employers to tailor their message and offerings to meet real needs and improve engagement throughout a business. Having the ability to measure benefit value and appreciation is critical to ensuring relevance of the programme. Technology and engagement are key bedfellows, and where deployed correctly, can help inform the business on appropriate spend and design.
As is so often the case, budget is the biggest barrier to both improving employee benefits (72%), and employee engagement (47%). The perennial issue of engagement continues to challenge all benefits practitioners; overcoming it will help manage the funding/return on investment(ROI) debate. The prolific use of smartphones and tablets suggests that technology, and HR portals that are responsive to different platforms, have a role to play.
Today’s ‘employee as consumer’ expects increasingly personalised communications, two-way dialogue, and customised information based on selections made.
This willingness of employees to engage in technology is a positive for HR. An effective portal, communicated well, enables greater self-service by employees. This reduces the need for interaction with HR, moving towards a culture of shared responsibility, where employees make effective decisions for their health, wealth and career, rather than relying on a paternalistic model that is no longer valuable.
In summary, in an ever-changing market, it is the role of technology that will help us overcome the barriers to good employee communication and engagement, to make benefits work better.
John Deacon is head of employee benefits consulting at Xerox HR Services
