HR ADVICE: For businesses looking to acquire the best talent an industry has to offer, a competitive benefit and compensation package is a must.
A long time ago, there were very few levers for HR to deploy, packages were assessed according to the monthly salary check and not much else. But today, employees have different priorities when choosing a place of employment.
Salary is certainly important still, but it is weight together with other benefits and perks, including health insurance coverage, flexible wellbeing benefits, and even the opportunity for discounts or freebies from some of an individual's preferred brands.
Due to this change many firms have had to recreate their benefits packages to suit this demand for bespoke and creative incentives. If that's on your To Do list this year, Chief of Staff Asia has compiled these five top tips to make the process smoother:
1. Understand the organisations’ vision and goals
HR professionals today are responsible not only for their organisation's employees, but also helping to drive the direction and financial environment of an organisation. By knowing what makes your organisation successful, the HR department can anticipate necessary changes to the workforce and the skills needed within it.
Having a more nuanced knowledge on the type of employees and skills that the organisation needs, can help employers develop a customised benefits packages that are unique to those roles and prospective talents.
2. Align compensation and benefits to employee needs
Giving employees the power to choose some benefits provides them with a unique, positive experience which, in turn, can increase productivity and broader morale across the business. Contrary to first expectations, it can also work to reduce plan costs overall.
This is because employees are likely to choose benefits that keep themselves healthy such as gym memberships or wellness programs. Healthier staff means lower premiums, and also fewer sick days across the workforce.
3. Conduct a cost analysis
Real data is a vital ingredient of modern compensation and benefit development, and employers should look to create a cost-benefit analysis against each inclusion . This can help employers understand what benefits are being used the most, how much money to spend on them, and if employees understand how to maximise their benefits.
Conducting a cost-benefit analysis can also assist employers with the firm's budget and drive the financial environment during these unprecedented times.
4. Look to implement soft benefits
The Covid-19 pandemic has changed workplace priorities for employees almost everywhere. Cash compensations are no longer enough to attract and retain the most celebrated talent, so employers should look to include soft benefits such as work-place flexibility, work-from-home office allowances, and free or subsidised meals.
Dedicated training in generalist skills can be another benefit that has a win-win outcome for both employer and staff member. They each can showcase the employee's value to the organisation, increasing motivation and engagement.
5. Embrace technology
To keep up with the changing times, firms should embrace new technology tools to help manage their labour market interactions. Recruitment, candidate assessments and a wide range of other working experiences can now be done online, but there is also a wide range of people analytics services now available.
These can help HR leaders to understand their workforces on a deeper level, which can feed into the design and development of best value benefits packages.