HR REWARD AND BENEFITS
decline a position on the basis of benefits, but if they are receiving something that is useful to them it can act as an added incentive. Therefore we focus on giving our employees choice rather than any specific market-leading benefit.” Davis points out that motivation can be complex. In her
experience, it is not always the highest earners or those receiving the most valuable benefits that are the most motivated among the workforce – it is those with a sense of purpose and a feeling that what they are doing is valued. The aim at Balfour Beatty, therefore, is to promote that culture through the benefits and rewards on offer. Doing this well, adds Davis, ties in to the bigger picture relating to the style of leadership the company promotes and creating a working culture about which employees can feel proud. The point is echoed by Matt Waller, founder and CEO of
online benefits company, Benefex. He asserts that the most effective reward programmes strike a balance between benefiting the business and making employees happy.
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The ideal scenario sees HR balance employee demand for benefi ts with costs – to get both board buy-in and employees engaged. Success in this respect is more likely if fl exible benefi ts are offered, where the budget/ costs can be fi xed per employee, but the choice can be almost unlimited. However, director of the UK reward practice at Towers Watson, Chris Charman, believes a large amount of money is wasted in reward spend. The reason they are not as successful as they might be is a failure at communicating effectively what they offer, how it works and why. Only 4% of companies in its Towers Watson Total Reward Communications pulse survey from June 2012 exhibited a best practice approach to thinking about communicating total reward. “Some 90% of organisations say their main reason for communicating
total rewards is to improve understanding of the value of rewards, yet only 23% believed their staff had a good understanding of the value,” says Charman. “It is a signifi cant waste of money and effort.” The CIPD/Benefex Reward Management Survey 2012 found:
a benefit, is it because If I don’t take up understand it? Eddie Hodgart/Mercer
I don’t value it, or because I don’t
Nine in 10 employers contribute to an employee pension scheme Most common benefi ts overall: paid leave beyond statutory requirement (65%); training and development (65%); and childcare vouchers (62%)
Most common benefi ts restricted to certain grades: car allowance (62%); company car (54%); and private medical insurance (40%).
Most common benefi ts as part of a fl exible benefi ts scheme: dental insurance (46%); cycle-to-work schemes (44%); childcare vouchers (42%); and health screening (38%)
hrmagazine.co.uk
HR September 2012 13
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