How to reconfigure benefits for a work-from-home workforce

Given the seismic changes to the UK workplace environment in recent months, company executives and business leaders are now being presented with the challenge of resetting their employee benefits strategy. They need to meet the needs of a blended workplace that will operate from home, return to the office or consider alternate workplace options. For many people, working from home has illustrated the positives of flexible working arrangements and, at the same time, presented an opportunity to reflect on what they want from their employer longer term.

The culture pulse: boosting employee mindsets and behaviours so they can deliver their best performance is the title of the session to be delivered at REBA’s virtual Employee Wellbeing Congress by Sally Earnshaw, MD Culture Change Consulting - Gallagher Benefit Services, on 09 September at 11:45.

Best practice employee benefits strategies underpin and, in some respects, guide an organisation’s culture. In the age of the micro-experience, where employees are looking for a diverse mix of opportunities and lifestyle choices, an out-of-the-box rewards and benefits solution is unlikely to meet the evolving and growing expectations of the 21^st century workforce.

Driving value from rewards and benefits

The transition from COVID crisis management into return to workplace mode has presented organisations with an unique opportunity to get closer to the real value of employee rewards and benefits. It has enabled businesses to set realistic workplace expectations that drive productivity and an enhanced customer experience, whilst recognising what’s truly important at an individual employee level. Retention, engagement and recognition, when calibrated against sustainable investment, can be enhanced and differentiated by a well-positioned work from home strategy, reflecting a deeper understanding of life and the trade-off required to meet the demands of work.

In some respects, benefits strategies are the ultimate stress test of the employee value proposition in defining the way an employer (and brand) sets its people up for success and longer term wellbeing.

By extending wellbeing opportunities to cater for the workplace and a home-based working environment, employers are able to demonstrate a deeper commitment to their people, sending a clear message that forming an emotional connection is as important as getting the job done.

And over the last decade, flexible working has moved from aspiration to expectation. From a slow start in the early years, the UK flexibility agenda has gained year-on-year momentum and will no doubt accelerate as organisations move through the current environment and in to whatever the future workplace looks like.

Benefits that tackle working from home challenges

Taking a broader perspective, however, working from home is far from being the panacea for a post-lockdown environment. It’s important to note that benefit strategies need to get closer to the underlying challenges people will face in a permanent move to home working, as well as responding to employee feedback of a desire to adapt to a new norm.

UK research and survey data paints a concerning picture with roughly 60-70% of UK workers citing increased financial stress and the prospect of living between pay cheques. Without a financial cushion to fall back on, employees are sacrificing leave, healthcare, pensions and investing in longer term planning to survive in the ‘here and now’.

For many UK employees the daily commute is a significant down point in the average working day, reliant on public transport and an infrastructure grinding under the weight of a growing workforce. The stress of running late and trying to juggle home and life pressures adds another dimension.

No longer at the mercy of the daily commute, employees in the advent of increased flexible working options are able to seek out job opportunities beyond their historic catchment area, which for employers the up-side can be significant in terms of bringing more diversity and calibre of talent into the organisation. The availability of an attractive, tailored benefits package will most likely be the deal clincher, and employers will become more discerning in their appetite for flexibility. As the UK continues to invest in digital capability and high speed Wi-Fi, working from home will become smarter, better connected and less dependent on physical location.

Technology and the virtual workplace are integral to the success of a blended home/office workforce, and something the majority of UK employees are looking for in a flexible working arrangement. Providing access to a mobile phone, laptop and other portable devices will represent a significant balance sheet investment in the short term. One step further would be to provide subsidies or allowances for employees using their own devices, and discounted (or ideally 100% covered) broadband access.

And working from home arrangements and benefits packages for the ICT sector is not the same as for retail, manufacturing, professional services and others. Tailoring and differentiating the design of benefits strategies can offer competitive advantages including talent attraction, retention and ultimately enhanced brand reputation.

2020 employee engagement trends

The initial findings in Gallagher’s 2020 Benefits Strategy & Benchmarking Survey (due for release in early October) indicate three broad trends emerging across UK organisations as they re-engage their workforce:

1) Employers are actively reviewing and innovating their benefits platform to differentiate their offering.

2) Many are introducing increased flexibility arrangements, including the ability to carry annual leave balances over into 2021.

3) A growing number of employers are surveying employees to better understand the mix of benefits that enhance the workplace experience and create value that translates into increased engagement and productivity.

Understanding what motivates the desire to work flexibly, including from home is key to formulating a benefits strategy that provides a ‘whole of workplace’ solution.

Targeted and regular communication is a ‘must have’ component of a benefits strategy, and doubly so to retain connection with homeworkers. Unlocking a measurable return on investment requires communications to be relevant, relatable and above all meaningful. Simply providing a list of available benefits won’t cut the mustard, and as employees become clearer and more discerning in what they need, the benefits platform will be required to look beyond the basics.

Child and primary care for relatives requires a finely tuned balancing act for those opting to remain at home longer term.

As such, employers need to actively listen and regularly engage to ensure their benefits offering caters for a broad and diverse range of care needs. A significant percentage of UK employees are looking for long-term help and childcare support options from their employer. And with the current uncertainty on when, and how, children will return to the classroom, flexible workplace arrangements also need to cater for a working day with built-in ambiguity.

Customising employee benefits

In a more challenging economic environment, there is less likely to be a pragmatic (or ambivalent) view on benefits. As such, employees will take a closer view at how and where the available benefits package can be customised to enable lifestyle choices that deliver broader wellbeing.

Technology and digital innovation will continue to shape the workplace of the future. This would have happened with or without the appearance of COVID, and partly reflects the general dependence we have on our mobile devices.

Digital benefit plans bring enormous potential for both employer and employee gains — but they carry a reduced impact in the absence of face-to-face and other social forums. Only by interacting with employees in person is it possible to design, implement and improve what is, after all, a human experience. The voice of the customer – in this case, our people – should be integrated into a digital plan. Technology after all is an enabler of information exchange but not a replacement for human interaction.

Recognition can become more challenging for home working colleagues, where a simple “thank-you!” delivered virtually often lacks the huzzah of being in the room with others. There is an important place in this for well-considered innovation, delivering a mix of experiences that keep our people close, connected and feeling valued whether their desk is at home or in the office.

Rather than adopting a ‘set and forget’ approach, co-creating a benefits platform designed to meet the expectations of today while considering the aspirations for the future will go a long way towards embracing an evolving workplace and making best practice, even better.

The author is Sarah Jefferys, head of reward consulting, Total Reward Group, a Gallagher Company.

This article is provided by Total Reward Group, a Gallagher Company.