EMPLOYEE BENEFITS, REWARD & RECOGNITION IN 2016DELIVERING BETTER BUSINESS IMPACT

0844 875 3388*

INTRODUCTIONAttracting and retaining the best people will be the top driver in how employers use employee benefits, reward and recognition in 2016.

This is the key finding of Edenred’s fourth annual trends survey, reflecting for a second year in a row, the increasing importance of employee benefits, reward and recognition in shaping the overall Employee Value Proposition.

At the same time however, it appears that many employers are missing the opportunity to offer reward in a way that will ensure their investment achieves their top objectives of positioning them as an ‘employer of choice’ and driving up employee engagement.

This report summarises the key themes for the year ahead and the five priority areas employers should address to deliver a better return on investment and better business impact from their spend in 2016.

Attracting and retaining the best people will be the top driver in how employers use employee

benefits, reward and recognition in 2016

0844 875 3388*

KEY TRENDS FOR 2016THE RESEARCHTHE TOP THREE FACTORS WHICH WILL SHAPE EMPLOYEE BENEFITS PROVISION ARE:

Recruiting and retaining the best people

Complying with new rules around benefits provision

Changing employee expectations of the benefits mix

39%

60%

63%

Drive up employee engagement

Retain people

Improve employee performance

Support recruitment

Improve health and wellbeing

Support team performance

EMPLOYERS WANT TO USE EMPLOYEE BENEFITS TO:

BUT ORGANISATIONS COULD DO MUCH MORE TO IMPROVE THE IMPACT OF THEIR SPEND:

Only a quarter of HR and benefits professionals say they are proud of their organisation’s reward proposition (23%)

Fewer than one in five say their organisation is innovative in their use of reward (17%)

Less than one third say managers and leaders understand how benefits can improve people performance (31%)

60% OF EMPLOYERS UNDERSTAND THE ROLE INCENTIVES AND RECOGNITION CAN PLAY IN GETTING THE BEST FROM EMPLOYEES

THE TOP FIVE CHANGES EMPLOYERS WILL MAKE IN THE YEAR AHEAD WILL BE:

Improving communication - both creativity (64%) and frequency (61%)

Align benefits provision to business strategy (60%)

Use of reward and recognition to support individual and team performance (60%)

Refreshing the benefits proposition - to meet employee expectations (55%)

Working with managers - to spread the word about the benefits on offer (51%)

1

2

3

4

5

0844 875 3388*

DRIVING PEOPLE PERFORMANCEFIVE WAYS YOU CAN DEPLOY EMPLOYEE BENEFITS AND REWARD AND RECOGNITION

USING TECHNOLOGY TO DRIVE UP PARTICIPATIONWhile smart phones and tablets are now the dominant devices for internet access, just one in four employers (39%) plan to use technology to help drive up benefits usage and fewer still (35%) say they will improve access to benefits through these devices.

Employees import consumer expectations into the workplace. Employers who ignore the importance of technology aren’t just making life more difficult for employees when it comes to accessing their benefits, but are also showing they are out-of-touch with what employees want.

Improving the employee experience through better use of technology should be a critical factor in any investment in the year ahead.

A closer look at our research shows five key areas where employers must act in order to make sure their benefits, reward and recognition proposition is relevant and accessible for their employees.

1

0844 875 3388*

BRIDGING THE COMMUNICATIONS GAP BY WORKING WITH MANAGERS

It is good news that the majority of organisations recognise the need to improve the way they go about telling people about their benefits offering, with nearly two thirds planning to increase frequency and creativity of communications.

However, the majority of employers are failing to address the biggest opportunity to make a difference in perception and take-up of employee reward schemes by working more closely with line managers.

Line managers are the face of the organisation to every employee as they join and progress through within the business. It is critical that HR and reward teams have a communications plan which makes the most of managers and their relationship with employees.

2

CHALLENGING THE ORGANISATION TO DO THINGS DIFFERENTLY

With only 18% of respondents saying their benefits proposition is innovative, another clear opportunity in the year is to stand out by thinking beyond the traditional employee benefits offered by employers.

This could start by offering salary sacrifice or voluntary benefits which not only offer employees greater choice but are typically cost neutral for employers.

A separate survey by Investors in People shows a third of employees (34%) would prefer flexible working to a pay rise. Employers should also think about how they can use HR policy to create the kind of non-traditional perks such as compressed working hours or home-working, which are highly attractive to certain groups of employees.

3

0844 875 3388*

TAILORING YOUR BENEFITS PROPOSITION TO MEET EMPLOYEE NEEDS

Another area where organisations can make a big difference to the impact of their employee benefits proposition is by ensuring it is in line with what employees want. Surprisingly few employers actually do this.

Barely one in three employers (30%) say they benchmark against what their competitors offer and only 16% say they build a proposition around the kinds of things that would appeal to specific employees groups.

If the main objective for employee benefits is to attract and retain the right kind of people, then it is critical any investment must be built on this insight. And given the low number of organisations which goes through this exercise, any employer who does so has a real advantage by standing out as an organisation who really looks after their people in a competitive recruitment environment.

BOOSTING PERFORMANCE THROUGH INCENTIVES AND RECOGNITION

Improving employee performance is among the top three priorities for organisations in the year ahead. But although a large majority of employers (60%) understand the role incentives and recognition can play in getting the best from employees, they also admit they need to deploy them more effectively to get the results they want.

Where employee recognition programmes succeed, they give employees and managers the opportunity to recognise behaviours or performance which makes a difference to the success of the business.

Where they fail, there is a lack of focus on the recognition aspect - the simple act of saying thanks, inconsistent application and poor alignment to business objectives.

Employers who want to use incentives and recognition effectively in the year ahead need to move away from ad hoc schemes. They need to ensure that there is a consistent recognition and reward strategy throughout the business and work with managers to make sure it is applied effectively.

4

5

For more content like this, visit E.Hub - the HR, reward and benefits knowledge exchange:

www.edenred.co.uk/ehub

Follow us:https://twitter.com/Edenredukhttp://uk.linkedin.com/company/edenred-uk-group-

ABOUT EDENREDARE YOU LOOKING TO MAKE AN IMPACT WITH EMPLOYEE BENEFITS, REWARD AND RECOGNITION IN 2016?

Hub

Edenred are the UK’s leading employee benefits, reward and recognition partner. We can provide a huge range of solutions - from standalone employee benefits to online technology portals.

The types of services we offer:• Cost-effective online technology solutions for Flexible

Benefits, Recognition/Social Recognition, Rewards, Total Reward Statements and Retail Discounts

• A huge range of Salary Sacrifice Benefits such as Childcare Vouchers, Cycle to Work, Home Technology and Mobile Phones

• A range of reward options such as Retail Vouchers, Gift Cards or Digital Incentive Solutions

• Solutions for compliance issues, such as Corporate Eyecare Provision and Pensions Auto-Enrolment

• Communications and Creative Support Services to develop your ‘Employer Brand and Values’

• And many more...

WE’D LOVE TO TALKCall us today to chat about your plans and objectives to see how Edenred’s solutions can help you make a bigger impact this year.

Call: 0844 875 3388*Visit: www.edenred.co.uk

*Calls cost 5p per minute plus your phone company’s access charge.