How to measure the value of employee benefits
The removal of some salary sacrifice arrangements means it’s going to be even harder to prove the return on investment in employee benefits.
Why should you be measuring?
Employee benefits are a great way to show your staff you value them. They also provide perks that are a lot easier to instigate than a pay rise. It’s really easy to tailor to your individual workforce’s needs, meaning you get even more bang for your buck.
Seeing the value
Having a clear idea of the value of your employee benefits helps you to meet company targets regarding employee satisfaction and retention. An Employee Insight report conducted by Capita in 2015 stated that ‘66% of staff would be more likely to stay with an employer that offered good benefits’.
If you’re still wondering why you should keep staff then the fact that unmotivated staff leads to higher attrition, and training new employees can cost in excess of £30k is all you need to know.
If you have a high staff turnover, a high sickness rate and a workforce that seems fed up, then your employee benefits aren’t doing their job. And these factors will in turn be dragging your profits down through poor productivity.
What should you be measuring?
Some of the key things to measure are:
- Staff morale
- Staff retention
How do you measure?
If you want to know whether you’re getting a good return out of your employee benefits programme, then why not ask the users – your staff? According to The Benefits Research 2014, 41% of companies say they introduce or change benefits based on requests from their employees.
You can get feedback by running surveys, from informal conversations or via appraisals. The most important thing is to keep staff involved.
For an unbeatable level of insight, online benefits platforms like Salary Extras give you the opportunity to track engagement - view log-in numbers, how frequently people are logging in, whether or not they are making selections, etc.
Now you have your results – it’s time to review your employee benefits offering. Most packages can be renewed annually, but research by Unum shows that over 50% of businesses have not reviewed their packages since 2008. Don’t be afraid to change the range of benefits you offer.
If your employees are getting the best employee benefits then they are unlikely to be looking anywhere else – but that shouldn’t stop you. Staying ahead of the competition and checking out other people’s ideas is also a great way to keep up to date with the latest perks. LinkedIn are a great example of how to shake things up and make waves with your employee benefits, offering everything from educational grants to yoga.
As your business grows and changes, it’s important to review your employee benefits provider and how well their service matches your needs. And, as with any other service, it’s important to keep negotiating to ensure you have the best value schemes.
If you haven’t been measuring the value of your employee benefits, then it’s not too late – start now!
To read other topics around attracting and retaining employees and employee engagement please visit our blog www.blog.computershare-salaryextras.com.