Why giving employees benefits they really want is good for business
Netflix presents us with a personalised list of films and TV shows based on our preferences. Music streaming platform Spotify compiles daily playlists of songs we may like based on the music we listen to. Amazon lists endless items we may want to buy based on our order and search history.
Every aspect of our lives online leans towards personalisation. Yet, in most organisations, we are given the same benefits regardless of our preferences or lifestyle. It’s a one-size-fits-all approach.
Which benefits are most valued?
In the workplace, a personalised experience means understanding the unique needs, preferences and hopes of employees. And using those insights to deliver an experience that shows we value and care about them – rather than being just another number.
We speak to many organisations that proudly tell us about their generous pension schemes. But Millennials and Generation Z employees make up more than half of the workforce. They are used to the high levels of personalisation, choice, and instant gratification that come from smartphone use and gamification. When it comes to benefits, saving up for retirement may not be their top priority.
A survey by Fractl in the US asked employees which benefits they valued most when choosing between a higher paying job or a lower paying job with better benefits. Here’s what they said:
Employee benefits from least to most valued:
- Team bonding events
- Company-wide retreats
- Free coffee and snacks
- Free daycare
- Paid parental leave
- Student loan assistance
- Work from home options
- Flexible working hours
- Health/dental insurance
Every generation is different
Organisations have an obligation to provide a pension through auto-enrolment. But if we decide to contribute above the required level, is this a good return on our investment? What if employees could choose between making higher pension contributions or having a benefit they can use now? Many people would choose the latter, given the cost-of-living crisis.
Our research into generational preferences shows that each generation values different benefits in the workplace:
People also value different benefits based on lifestyle, life stage and experiences. New parents may value parental leave or flexible working. Single employees may prefer more holiday or fitness classes. Parents with older children may value tuition assistance and medical cover for their family.
KPMG research found that companies who invest in employee experience benefit from 4.2x higher average profit than their competitors. Personalisation and focusing on the employee experience is a great way to celebrate our uniqueness – and bring people together to achieve a common purpose.
In partnership with 3R Strategy
Independent Pay & Reward Consultancy