Flexible benefits have certainly taken off in the last few years. With the cost of technology falling and more employers implementing a platform to support their pension auto-enrolment requirements, demand for flex keeps growing.
Independent research commissioned by Simplyhealth in July 2015 showed that 51% of corporates surveyed revealed that they offer all their benefits on a flexible basis. The advantages offered by flexible benefits have also helped to create this demand. Allowing employees to choose the benefits they want can lead to greater employee engagement and, in turn, productivity, as well as helping an organisation attract and retain key members of staff.
Catering to a multi-generational workforce
The flexibility on offer also suits changes in the workplace. An ageing population has created multi-generational workforces, with employees at different ages and stages of their lives. By offering a range of benefits through flex, employees can select a package to suit their individual needs. For example, some employees may value childcare vouchers if they have a young family, whereas other employees may prefer benefits such as dental insurance or a health plan that they can use on a regular basis. The one-size-fits-all model clearly no longer fits.
Employees really appreciate this flexibility too. The research found that a staggering 91% of employees believe it is better to receive benefits on a flexible basis. The ability for employees to be able to pick the benefits they want has made health and wellbeing a particularly popular addition to any flexible benefits programmes. More than half (58%) of organisations offer benefits to maximise health and wellbeing demonstrating that it is a key focus for many organisations.
Employees definitely want health and wellbeing as part of their flexible benefits programme. Our research found that almost two-thirds (60%) of employees see health and wellbeing benefits as one of the top three most appealing employee benefits and the most appealing optional benefit.
Engage employees
To encourage employees to really engage, it is important to offer a benefit that they can use as often as possible. Benefits such as health cash plans are designed to be used regularly and encourage employees to be proactive about their health and wellbeing by helping to cover the cost of everyday healthcare such as visits to the dentist, optician or physiotherapist.
Enabling employees to claim money back on their healthcare costs can act as a preventative measure and stop issues developing into something more serious which could lead to absenteeism. For example, an employee suffering from back pain is more likely to visit a physiotherapist if they know that the cost is covered.
With the growth of smartphones and tablets, it has now become an expectation or the norm to carry out tasks instantly and at any time of day. Employees expect to be able to engage with benefits at a time and place convenient to them. A common way is through a provider’s service proposition.
Promote the benefits on offer
As the shop window for flexible benefits is often only open for a month or so, it is vitally important that employees are fully aware and engaged with the benefits available to them. This is where providers can help by helping to promote the benefits on offer. For example, many health and wellbeing providers provide communications throughout the year on health topics to act as a reminder about the benefits employees have available to them.
Changes in the age demographics of the workforce have made flexible benefits an important tool for businesses to really engage with their employees and what they really need. Employees have the opportunity to choose what benefits are important to them at a time that is convenient and appropriate, thus creating an engaged workforce. What business would not want to have a healthier organisation through increased productivity and engagement?
Raman Sankaran is sales and marketing director at Simplyhealth
