Matt Duffy: Accurate data is key to effective segmentation

The starting point for any segmentation strategy should be clean and accurate data.

Employers should liaise with HR and payroll to ensure they have as much relevant information on employees as possible.

Analyse this data to identify different segments and populations of employees. While most employers acknowledge the obvious categories based on standard demographic dimensions, such as generation, gender and ethnicity, few recognise that even employees of the same demographic group can be highly diverse, with different abilities, work styles, and preferences and motivations to work.

Effective segmentation involves an employer creating its own groups and categories, but then going a step further to find new populations within those groups. This enables it to offer choices tailored to these segments with respect to benefits, compensation, training and development.

Shoehorning existing benefits to fit different employee segments simply does not work. Employers must find new and appropriate benefi ts that genuinely match their employee populations. Focusing and defining benefi ts in this way can have a big impact on take-up and perceived value. The process is not just about segmenting a workforce, but also about segmenting communications.

To increase take-up of benefits, employers need to identify the methods and frequencies that resonate with each group. Also keep all communications simple, concise and easily digestible.

Matt Duffy is head of online benefits, Lorica Employee Benefits