Raising the profile of voluntary benefits

Talent shortages, shifting employee expectations and a challenging economic climate are just some of the reasons why the voluntary benefits market has grown in recent years. Employers need to do more with less and engage with an increasingly diverse workforce demographic who want different things from a benefits package.

James Gilbert, principal at Aon, explains: “Many employers now view voluntary benefits as important as their traditional core health, risk, and retirement programmes in achieving their people objectives. Likewise, employees expect a voluntary benefits programme to fulfil their work-life needs, be it a gym membership or an [electric vehicle] EV scheme.” 

Talent management aid

Voluntary benefits, products and services offered by employers, often at discounted rates, which are opted into by employees, tend to be low-cost and relatively simple to implement and can be used to drive behaviours linked to broader business strategies. “For example, a will-writing service to support financial resilience or an EV scheme to support [environmental, social and governance] ESG objectives,” adds Gilbert.

Louis Kwakye, group chief revenue officer at Perkbox Vivup, adds: “A well-structured voluntary benefits scheme can be a powerful tool to attract, retain, and motivate employees. Voluntary benefits can complement a general benefits package. They can fill gaps, often covering areas that general benefits may not fully address, such as pet insurance, legal services, or eldercare provision.”

That range of potential offerings allows employers to provide a more tailored offering to a diverse workforce, with some including less traditional benefits like fertility treatments. “Voluntary benefits can be used to broaden engagement across a muti-generational workforce where, for example, a graduate might be more interested in saving for a home deposit than saving for retirement,” says Gilbert.

Cost-of-living support

In a pervasive and persistent cost-of-living crisis, such schemes can also be a powerful tool in helping employees’ money to go further. Examples include retail discount and cashback schemes and salary sacrifice programmes, often through car and bikes-for-work schemes, that reduce employees’ taxable income.

There are other more emerging ideas too. Kwakye suggests considering debt consolidation and repayment services in addition to a comprehensive financial wellbeing programme, while Gilbert cites mortgage advice as particularly impactful. “With many employees facing huge increases in monthly mortgage payments and lender deals changing rapidly, many [employers now] provide employees with access to expert advice in securing the right deal for their circumstances, thus reducing the negative effects on productivity and absence that financial stress causes,” he explains.

But however good the offering, impact will be limited if take-up rates are low. Employers must focus carefully on how the range of benefits are communicated. Cheryl Clements, regional development manager at Tusker, explains: “This isn’t just about ensuring employees know about the benefits. Benefits need to be discussed, marketed, signposted and made easy to access and understand. Don’t make them difficult.”

The most important action is to create and regularly review a robust engagement strategy, to include performance metrics and where employee communication is seen as critical to success in marketing the offer. The first step is to gather staff feedback through a range of methods, including surveys and focus groups. “This data can be used to identify gaps in provision and the types and frequency of messaging that have the greatest effect,” Gilbert says.

Tailored communication

Messaging should be tailored to employee needs and kept clear and concise. “Segment employees by demographics, preferences and life stages: young professionals, parents, those nearing retirement,” says Kwakye. “Then craft personalised messages that emphasise the benefits most relevant to each group, for example childcare support for parents. Personalisation enhances the perceived value of benefits.”

Communication must come through a wide range of channels, including, but not limited to, email, intranet, social media and physical posters, newsletters and leaflets. A dedicated benefits app can bring all information into one easily accessible place and deliver personalised messaging. Employers could also consider benefits roadshows at different locations, along with webinars with suppliers explaining how benefits work and creating employee case studies, says Clements.

While there may be complex terms and conditions attached to some benefits, employers should avoid making initial communications too dry. “Consider layering communications, perhaps using different media, so that the initial message is simple, compelling and personalised, leading employees to further detail should they need it,” says Gilbert.

A final thing to think about is the branding used to deliver communications. “Many employers still use corporate branding to deliver benefits messages,” Gilbert says. “It’s worth considering whether creating an internal brand would improve an [employee value proposition] EVP and cut through day-to-day business communications.”