How to create an effective benefits strategy

With staff prioritising perks over salary, there’s no better time to review your business’s benefits strategy.

A tight labour market has changed the way employers attract staff. Furthermore, the shift brought about by the pandemic has seen employee wellbeing take centre stage as workers prioritise benefits over salary.

Therefore, it has never been more important for organisations to reflect on their benefits strategy and update where needed to help them stand out amid a candidate’s market.

Benefex released 6 Themes That Will Make or Break Your Benefits Strategy in 2023. The report highlighted the best ways to redesign benefits packages that will attract and retain employees.

1. Less self-actualising, more measuring

Leaders can help to create meaningful benefits for staff by measuring results through the use of data.

By analysing insights and listening to those affected by a company’s decisions, you’re better able to curate a strategy that reflects the wants and needs of workers.

Yvette Janse van Rensburg, talent manager at CBRE, commented: “It has to be evidence-based. Yes, there’s lots of theory around why you should look at this solution or why this might work for your organisation. Ultimately, the evidence has to be there to say, ‘yes, we have tested this with this population, or organisations, or people. And yes, it has worked. So this is why you should look at it.’”

Collecting data, assessing it, and then optimising plans that reflect what your employees want will allow you to provide better benefits.

2. Using tech to create a home for wellbeing and the benefits that support it

Wellbeing is the overarching theme of a benefits strategy. After all, if you aren’t providing benefits in the hopes of improving wellbeing, you’re doing it wrong.

Technology can assist in improving wellbeing by allowing for faster, more streamlined support through the use of wellbeing platforms.

“The benefits world is changing. People are working longer [and] care responsibilities are changing. We’ve tried to bring things together and make it as easy as possible for employees to engage,” said Adam Brooke, senior benefits consultant at the Bank of America Merrill Lynch.

3. Showing the value of reward and recognition in keeping great people

According to Benefex, providing a solid benefits strategy will make employees feel more valued, improving retention.

The report revealed that 89 per cent of respondents said a good benefits package encourages them to stay with their employer. Meanwhile, 91 per cent said that a great benefits package makes them feel more valued at work.

This shows that creating a good benefits policy promotes engagement, which in turn can help retain staff.

Jackie Buttery, former global head of reward and benefits at Herbert Smith Freehills, said that benefits plans have “got to be about people and engagement”.

4. Reviewing how reward, benefits, and recognition is communicated to prospective candidates

There’s no use providing benefits to attract talent if the candidates don’t know these benefits exist. Communication is key, said Benefex.

According to the report, 76 per cent of employees would be attracted to a company based on its benefits.

It’s important to provide candidates with the opportunities to access company information, especially what benefits are on offer.

“When I was going through the recruitment process, Plusnet Perks was brought up a couple of times. The job itself was already a big interest to me, but with the addition of all the perks, it made it seem even better. It definitely had a very positive impact on my decision to join,” commented Luke Todd, former junior front-end developer at Plusnet.

5. Putting purpose and values at the centre of your reward and recognition strategy

Environmental, social, and governance (ESG) has been a recurring theme of businesses. Employees want to feel like they’re making a difference in the world.

According to Benefex, 81 per cent of employees under 40 said that sustainability is important when looking for a job.

With this in mind, it’s important to reflect values into the decision-making process. Providing benefits that align with ESG themes can help to create a more attractive benefits package.

Andrea Kilgour from Plusnet said: “For me, it’s really important to think about how to create an employee proposition which links together with the way we serve people … as authentic as their own voices.”

6. Taking your seat at the strategic HR table

In today’s job market, benefits clearly play a huge role in affecting business outcomes.

Retention, attraction, engagement, and overall profitability are impacted by the benefits strategy.

Therefore, it’s important for businesses to incorporate the benefits plans into the goals of the business. Companies can benefit by recognising the importance of this function and using it when making decisions.

As Vanessa Corsie, the pensions operations manager and HR industrial relations and rewards at EDF, said: “Make sure your benefits strategy aligns with your corporate strategy.”

To read Benefex’s full 6 Themes That Will Make or Break Your Benefits Strategy in 2023, click here.