The Benefits Revolution
Is this the Benefits Revolution?
Covid-19 has had a profound impact on our working life. Benefits are a part of this, so how are companies reacting to the change?
As a Scheme Design team, we have had many conversations around where the market is heading.
Pre-Covid-19, the benefits world was changing but at a very slow pace.
Employers wanted ‘consumer-grade’ experiences for their employees, the online experience we're all so used to. Yet, resourcing and processes made it difficult. We had seen market leaders innovate and lead the way, but the rest of the market had not caught up yet. The tech giants of the world moved towards the complete ‘employee experience’. Allowing employees to tailor their benefits to their own individual needs and lifestyle. This approach was the envy of many companies - offering employees true flexibility.
Then, Covid-19 happened and employers needed to adjust their benefits programme to the changing times. Market leaders, who had adopted this ‘employee experience’, were able to react, making swift decisions and amending their schemes as necessary. That ‘Benefit Flex Pot’ became the ‘Home Office Fund’. The not-so-flexible 1 day a week at home became a permanent work from home arrangement.
So, the rest of the market is asking “How do we keep up?”
Due to the impact of Covid-19, employees were not able to access and utilise many of their benefits. Gym discount benefits became redundant. Cash Plan policies provided limited support and coverage due to restrictions. This is disengaging for employees and, most likely, seen as a frustrating waste of money. Instead, while at home, employees have been paying for subscription services, higher energy bills and increased food shops. They are not receiving support where they need it the most.
So, how do you get employees the support they need, when they need it the most?
We see successful initiatives focus on two key elements:
Strategy and Technology.
Having a benefits strategy in place is paramount and allows a company to make structured changes if and when required.
Decisions are made at a faster pace as employers can identify whether any changes align to business goals. Companies that always seem to get it right, even during unexpected events, have a well-established benefits strategy in place.
The right technology is key to ensuring any changes are implemented effectively and efficiently. Whether this is technology to manage or communicate change, both of these elements are important.
Innovative and forward-thinking companies have these two elements in place, helping them drive forward change at a far quicker pace than most. They not only react to change well but embrace it and look for ways to turn this change into opportunity.
This is not about needing new funding for your scheme; this is about being smart with what you currently have. Adapting and tailoring the scheme to adjust to the changing environment.
Over the years, we have seen this shift in the market coming. Employers wanting to transfer the onus away from themselves and empower employees to pick benefits relevant to them.
Our view? The market was always going this way; Covid-19 accelerated the pace.
So, what can you do?
Firstly, review your strategy. Does your strategy align to the changing environment? If not, then it may be time to update and refresh it. Consider whether your current benefits package aligns to your strategic objectives and supports employees in the 'new world'.
Then, review your internal policies. Do your policies support the new normal; do they need to be modernised and refreshed? Taking proactive steps to review your benefits package shows employees you care. .
Listen to your employees. Ask them what they want and need, and how can you support their needs?
Evaluate your communications strategy. Do you have the tools in place to cope with this change? You'll need to successfully communicate change to employees in an environment of constant change.