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Pay & Reward

Pay freezes and bonus cuts... Is it time to re-think your rewards?

The spotlight on financial sector bonuses is a chance for all companies to take another look at their pay and benefits structures. With more than half of the UK population not expecting to receive a pay rise this year, decreased engagement and productivity can be expected, unless businesses act now. With the leading banks handing out bonuses, some of which can only be described as ‘mammoth’, many employees in other sectors will probably feel cheated. However, there are other innovative ways that employers can reward their staff – even if they do have a restricted budget.

Jennifer Stacey, Chief People Officer of Ceridian told BBC Radio 5 Live:

Employers are being more innovative in their approach to pay, and how they choose to deliver wealth to their employees. Many employers are now taking advantage of salary sacrifice and government incentives, including: pensions, the chance to buy additional holidays and take them below a threshold of tax, childcare vouchers and even purchasing bicycles as part of ‘Cycle to Work’ schemes.”

Research by Ceridian and Vebnet has highlighted that employees are still not clear about the true value of benefits on offer. The majority (57%) felt their employers invested less than 10% of their salary on their benefits package. Whilst this does differ between companies and even pay scales, industry reports suggest employers invest on average between 20% - 40% of an individual’s salary.

So, the key is communication: firstly, making sure that your employees understand the benefits package on offer, and secondly, communicating the value that these benefits can bring to their everyday lives. With regard to the latter, some employers have introduced Total Reward Statements. Employees receive a single personalised statement, where each entry of their reward package is assigned a cash value – giving a more accurate view of the reward package being offered. This is particularly useful when communicating the tangible value of such rewards as: additional holidays, retail vouchers, and training spend.

A flexible benefits scheme is a great way to boost engagement and with salary sacrifice, can be a cost-effective option for employers. However, if employees are confused about what is on offer or are unsure how it benefits them, your hard work has been wasted.

Here are Connection’s top tips to effectively communicate your benefits scheme:

1. Vary your communications: Different people process information in different ways. A blended approach, with a mixture of methods will help to make sure all employees are receiving important information in a way that suits them.

2. Open dialogue: Give employees the opportunity to ask questions, whether in an open forum, via a helpline or through a Q&Amp;A email account. This is especially important if you are implementing a flexible benefits or salary sacrifice scheme for the first time.

3. Remember your brand: Communicating your benefits strategy is another opportunity to strengthen your employer brand. Even subtle touches can have an impact, such as the colour, font and images chosen.

4. Timing is key: Planning your communication is crucial. Aim to start around a month before enrolment and build up communications around key milestone dates throughout the year. It’s important not to overlook post ‘go-live’ communications. Many employees like reassurance that the process has been a success.

5. Involve your employees: Ask your employees what they feel the key messages are and how they would like to receive information. It is just as important to include employee views in the creation of the communication strategy as it is in the creation of the benefits scheme itself. As well as helping to engage employees and create relevant communications, this is often the way to generate the most creative ideas.

Ceridian offers a Flexible Benefits scheme that integrates directly with your HR & Payroll, and also provides a diverse range of benefits for your employees. To enquire please call 0800 0482 737 .