Beyond buzzwords and hashtags: designing inclusive, fair and sustainable benefits strategies
What’s more, people want to feel different about work.
It’s no longer acceptable for the corporate lip gloss comments to prevail. Instead, employees expect a fair and inclusive workplace backed by a sustainable culture that continues to evolve and adapt with the times. The UK workforce is vibrant, diverse and motivated by many different things and, with the omnipresence of social media, the window into the world is also a window into your organisation.
Generally speaking, rewards and benefits are viewed as performance drivers. While there is logic in that view, it does overlook a number of critical contributors to longer term success. The majority of people don’t choose to work, they choose the best employment option that’s within their reach. In addition, many organisations assume what their people want or value, and worse still simply default to their competitor’s view of the world.
With culture and the future workforce top of the post-COVID leadership agenda, here are five practical pointers to focus your thinking and guide the discussion.
1. Facts rather than assumption – take action using data, insights and feedback
We have access to more data and information than at any other time in our history. And therein lies the challenge or opportunity depending on how you view the world. Extracting meaningful insights that drive focus and deliver results is key to striking an effective balance between reward and expectation – essentially, the crux of an employee value proposition (EVP).
A somewhat surprising statistic is the percentage of employees reporting that although their employer offers a range of benefits, they’re not the benefits they actually want or need. With roughly 45% of UK employees looking for flexible working and pay options, increased support with child and family care arrangements, and the option to either carry forward annual leave balances or swap pay-for-leave, the need to tailor benefits and rewards packages to address the most critical needs has never been more present.
One universal point holds true – workers and colleagues want to work for brands that consistently do the right thing, bring their customers in closer and then keep them close, and actively listen to what makes a difference to their people and shapes their world.
Here the time honoured ‘know your customer’ or KYC rule applies. Segmenting your internal stakeholder groups and tailoring packages that reflect their lifestyle choices and aspirations, as well as the layer of stability and wellbeing required to balance home and work. With working lives extending longer than in previous generations, employers are catering for a broad and diverse demographic. While access to healthcare benefits may be highly prized by one group, subsidised broadband and phones may be the deal clincher for another, while flexible working and increased childcare support may open up expanded career opportunities and new experiences. Unlocking the real opportunity from a customised rewards and benefits offering can translate into commercial advantage.
2. Communication and culture change with a capital ‘C’
Designing a benefits and rewards platform with cutting edge technology is redundant without tailored communications that clearly set out what is on offer and clarifies any connected expectations. Transparency is key to building trust, and communication is the simplest way to get there.
What’s more, given that reward and recognition is integral to high performing cultures and teams, communication is integral to both employee and customer experience. In my daily interactions it’s often surprising to hear the number of organisations who believe they have communicated their benefits and rewards proposition only to find that a fraction of their workforce actually understand what’s on offer. Employee feedback identifies challenges with knowing where to find information and the flexibility needed to tailor benefits that deliver enhanced wellbeing and optimum lifestyle choices.
3. Experience-led, building back from a pre-defined objective
The 21st century workforce is expecting employers and brands to lift their game. It’s all about the ‘experience’ – from opportunities to continuously learn and grow, connecting with experiences outside their immediate environment, through to thinking differently about what motivates talented people to lift the performance bar and reach higher. Whether that be through intuitive technology and digital applications that guide and inform smarter, more confident decision making, through to diagnostic tools and calculators that set out future opportunities based on different scenarios.
Historically, benefits and rewards strategies have been built around business objectives. In the age of the micro-experience where we shift across digital, in person and virtual interactions in a matter of minutes, better aligning benefits to be seamlessly available and flexible wherever we choose to review them can significantly increase uptake and effectiveness.
And the experience we have inside the organisation touches the experience we wrap around customers.
4. Forward thinking, with today firmly in mind
With concern growing on our economic and environment sustainability, corporate social responsibility is a key consideration when determining rewards and benefit packages. ESG (environmental, social and governance) targets have been topical in strategic review conversations in recent years, including executive remuneration packages. Ultimately, your people are looking for a purpose-led organisation where profit and growth is part (but not all) of the consideration. And where fairness extends to the communities we serve, happiness and wellbeing generally follows.
Reviewing pension funds to ensure they align with your organisation’s CSR approach and cultural values, is another step forward in the right direction. Responsible reward brings together sustainability objectives and connects them with short term remuneration and longer term incentive plans.
This extends to the mix of external suppliers, advisors and fund managers your organisation associates with. Placing colleague, customer and community through the same lens speaks volumes about integrity and purpose. Employees are increasingly asking for information on the selection criteria for the supplier community – how we sourced them, how their pension investments are being managed, and what we’re doing to protect the planet and create a sustainable workplace for future generations.
5. Think about the legacy you’re creating as much as the workplace you are building
COVID and the subsequent lockdown has changed the workplace forever, and business as usual is yesterday’s news. Creating a fair and level playing field for employees whether they choose to work in the office, remotely or at home is a game changer. Taking this one step further, enabling your workforce to co-create a benefits and rewards strategy that drives a measurable uptick in wellbeing, happiness and success could see your organisation join the top 20 list of the most desired employer brands.
Rewarding your people for their contribution to workplace culture rather than purely on their ability to complete a task, sends a clear and meaningful message into the organisation. Values and corporate mission statements, long the preserve of the website and annual report statement, are expected to translate into tangible (ideally measurable) proof points of your brand story. They should consider the mindset, behaviours and attitude your benefits offering is motivating as one of the best investments you can make towards an inclusive culture and longer term success.
Closing thoughts
Reward and benefits are flexible and intuitive by nature, not a ‘set and forget’ requirement that we dust off and review at our leisure. The way a brand or organisation steps up in tougher times forges their reputation for the better times. And if our reputation is built on the people who deliver a great experience, setting out an intuitive rewards and benefits strategy that meets the need of today and exceeds the expectations of tomorrow can only be an inspired choice.
This article is provided by Gallagher.
In partnership with Gallagher
Consultancy services including organisational wellbeing, culture change and internal communications.
