Reinsurer Munich Re had specific business objectives in mind when it set up its flexible benefits scheme in 2007.
The organisation had been operating as three distinct divisions, each with its own culture, workforce profile and benefits package. But employee engagement levels were generally low, and staff turnover in one of its divisions was unacceptably high.
It wanted to create more of a onecompany culture, reinforced by a benefits package that treated all employees equally and engaged them more. It also wanted to reduce its benefits spend.
Thomsons Online Benefits was appointed to provide the scheme, which is known as Re:Flex.
This scheme harmonised benefits across the three divisions, added new options to reflect staff feedback and rebroked some existing benefits to secure cost savings.
After a comprehensive communication programme, employee engagement showed an immediate, significant improvement, with 81% of the 336 workers making benefit selections within the first two months. Turnover in one division fell from 17% to 13.4%.
Between them, employees at Munich Re are saving approximately £12,500 by using salary sacrifice.
Robert Wigmore, compensation and benefits specialist at Munich Re, says: “[Employees’] personal benefits decisions now rest in their own hands.”
