Improved employee engagement will have a number of positive impacts on your organisation. Where employees feel better about working for you, you can be sure there will be a positive impact on recruitment, retention and even productivity. At the heart of this is the fact that by giving them choices you are acknowledging they have different needs and you are saying you value this diversity. For most organisations, even a modest 2% in employee turnover would translate into cost savings that would more than pay for the costs of implementing and running a flex scheme.
This diagram below illustrates how employers can use the same funding they apply on the traditional benefits to create a flexible benefit fund and how over time savings can be created.
For the traditional benefits scheme, the funding needs to cover spending on the core benefits and recruitment and HR admin costs.
For the same funding in a flexible benefits scheme, the spending on the existing core benefits is likely to be reduced by employees. They will use this “Flex fund” to select other benefit options that have been made available in the scheme.
The attractions of this approach are:
For the same funding in a flexible benefits scheme, the spending on the existing core benefits is likely to be reduced by employees. They will use this “Flex fund” to select other benefit options that have been made available in the scheme.
The attractions of this approach are:
- •
- It is possible to adopt certain solutions at no extra cost, or even to save money over time
- •
- Existing benefits levels can be maintained by employees
- •
- Employees will have significantly improved choices to tailor their benefits to meet their individual needs
It is this last point that gives you a competitive edge over your competition and therefore helps to improve your recruitment and retention prospects
Savings can be created over time as a result of better claims experience, commercial leverage with solution / benefit providers, lower recruitment costs due to lower turnover and lower HR admin costs by more fully utilising the outsourced services.
With the right benefits design and communication, your scheme will build higher levels of employee satisfaction and engagement. In our research amongst employees in Hong Kong, here are some of the things they said about the empower concept:
Savings can be created over time as a result of better claims experience, commercial leverage with solution / benefit providers, lower recruitment costs due to lower turnover and lower HR admin costs by more fully utilising the outsourced services.
With the right benefits design and communication, your scheme will build higher levels of employee satisfaction and engagement. In our research amongst employees in Hong Kong, here are some of the things they said about the empower concept:
