How flexible benefits attract skilled workers

The battle to attract, engage and retain talented employees continues, and many South African organisations are turning to flexible benefits to lure candidates away from their competitors.

“Skilled workers are realising how valuable they are and are demanding more than a generic remuneration package with set benefits,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).

To make flexible benefits work for them, companies have to understand the diverse needs of their employee and develop the right offering of benefits to best meet those needs.

How do flexible benefits work?
A good flexible benefits scheme offers employees:

• A variety of possible financial and retirement, health and wellness as well as work-life benefits to choose from
• The ability to select a mix of benefits that best suits their personal needs
• The means to readily adapt the benefit mix to changes in their life circumstances, and
• The power to periodically adjust any contribution to each benefit

In an ideal case, staff could be so well informed and empowered that they could manage their benefits independently through their digital corporate employee portal, adapt their mix at will, or adjust benefit contributions in return for extra take-home pay.

However, employers may face practical constraints on the benefits offered, as well as the frequency and level of adaptability they are able to support. For example, benefits that are contractually agreed on or regulated such as retirement fund contributions and risk cover, may be legally restricted and/or have limited flexible options to ensure responsible outcomes for employees. There are also cost considerations, where a specific risk cover has been negotiated based on intended membership and a defined risk profile, thus negating the possibility of constant membership changes

The scope of flexible benefits
Flexible benefits may be financial, material, environmental or even emotional. So, employers should never limit themselves only to traditional cost-to-company elements when developing their programme.

A tiered health insurance plan is a common alternative to traditional medical aid, allowing employees to adjust the cost of medical cover to their specific needs and/or excluding services they don’t typically use, like a gym membership.
A range of leave types and flexible working arrangements might be more attractive to employees seeking work-life balance, protecting their mental health, or raising children.

In-house wellness programmes, such as mental health awareness and support, or a variety of physical therapies may also be welcome for those employees who prefer preventative approaches to managing their health.

However, it’s not practical to list every possible benefit and it is up to employers to use employee feedback to determine what's best for their situation and continually innovate to remain competitive.

“Whatever the benefits are, the objective should be to have a comprehensive benefits programme that caters to diverse needs and employee preferences in a manner that enhances their overall well-being and job satisfaction in a responsible manner.” says Sebesho. “This helps them feel empowered and valued, driving them to greater workplace engagement and productivity.”

Know your employee
A successful flexible benefits programme starts with knowing what existing and potential employees want. Jumping in feet first could result in a model that falls short of expectations. So, the vital first step is to engage with staff and subject matter experts and build the scheme around their feedback on what’s valued.
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Research should consider factors like:

• Demographics: Understand the age, family structure, and life stages of your employees to tailor benefits accordingly.
• Gender - Women have different needs and concerns from men, like the pressure of raising children as a single mother.
• Stage of life - Older employees may be more concerned with retirement contributions whereas younger workers may need better medical aid and flexible work arrangements for their young families.
• Organisational level - Lower-level workers may want more take-home pay whereas affluent employees could care more about variable incentives and rewards.
• Financial implications: Determine the budget available for benefits and prioritise offerings that provide the most value to employees. Also evaluate the cost-effectiveness of different benefits to ensure they are sustainable.
• Benchmarking and compliance - consider what benefits are commonly offered in your industry to stay competitive and ensure compliance to laws regarding mandatory benefits.
• And any other parameters that help determine the best course of action.

“Again, it is possible and up to each employer to innovate and build a comprehensive, competitive flexible benefits offering that enables effective attraction, engagement and retention of diverse top talent,” says Sebesho.

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association

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