Why corporate benefits strategies fail?
Benefit trends
Basing on the results of the Benefit Trends Survey2019/2020, which includes responses from over 4,300 companies in 88 markets around the world, covering over 22 million employees, we can ecsplicit the following major problems employeers meet:
- The survey found that only 27% regard themselves as ‘highly effective’ in all areas of benefits strategy.
- A failure in using digital tools to drive engagement emerged as a notable area concern – cited as being effective by just 19% of respondents.
- Just 32% have effectively tailored their benefits portfolio to meet their workforce needs. This despite two-thirds (66%) claiming they understand their requirements.
The survey 6 demonstrates an unsatisfying organizational efficiency in core areas of benefits company’s strategy:
- Benefits portfolio 29%
- Financing 29%
- Talent experience 22%
- Administration and operations 26%
- Analytics, insights and reporting 29%
And furthermore, survey prognosis that the talent experience will top the agenda for the coming three years (2021-2024) with 70% of businesses planning to focus on the effective delivery of benefits to employee. Indeed, the importance of this should not be underestimated in the bid to attract and retain talent. This recognition, among 55% of survey respondents, should be welcomed, opening the door to establishing strategies that will address this emerging issue.
We can also expect to see a renewed emphasis on other key ingredients to a modern benefit programme – effective benefits financing and analytics (a focus for 62% and 56% of businesses respectively).
The survey also provide us an information about benefits strategy challenges over the next three years, specifying the problem of multi-generation challenge we meet for the first time in history. ”Modern workplace may see up to five generations working side-by-side – from the silent generation through to their youngest, generation Z colleagues – and each brings with it a different set of expectations, risks and requirements.”
We expect that AlbiCoins solution would significantly increase the effectiveness of our customer’s benefits strategy, by giving them: relevant online employee feed-back and analytic instruments and as well convenient digital solution.
Benefits strategy
We overview in a Table 1 the benefits strategy challenges over the next three years (2021- 2024) vs AlbiCoins solutions to meet those challenges:
Table 1.
| % share | Benefits strategy challenges (2021 – 2024) | AlbiCoins solutions |
|---|---|---|
| 55% | Differing wants and needs of a multi- generational workforce |
Flexible benefits cafeteria organized as typic e-shop |
| 50% | Rising benefits costs | Flexible benefits scheme with corporate 'coins' |
| 48% | Challenges communicating around benefits choices |
Online survey and voting tools |
| 36% | Lack of budget to deliver effective communication strategy |
AlbiCoins reduce costs of internal communication by holding all vertical and horizontal communication on one platform. The notification system could be easily set up at administration panel. Announcement and reminders for employees (or employee groups) could be scheduled or done automaticaly. |
| 34% | Lack of appropriate technology to effectively deliver company’s benefit programs |
We provide an appropriate ready-to-use solution which could be integrated with any benefit suppliers tools. |
| 34% | Lack of employee engagement with benefit programs |
We have combined on one platform important tools for engaging and encouraging employees and strengthened them by original incentive mechanic. |
| 34% | Lack of data to measure plan outcomes or changes in member behavior |
Online analytics tool provide opportunity to overview employee behavior: incentives engagement, recognition, training complition, survey participance, benefits prefences |
| 33% | Fragmentation of vendors/providers and lack of integrated tools Unions/collective labour agreements |
All-in-one solution combining all incentive and benefits cafeteria, plus integration with current customer CRM by API |
Researches
K Walsh, JR Gordon – Human resource management review, 2008. Creating an Individual Work Identity Kate Walsh, Cornell University Judith R. Gordon, Boston College)
Balu L. Presidency University, Bangalore. Impact of compensation and benefits to employee motivation in a business. January 2022. Conference: 8th International Conference on Managing Human Resources at the Workplace.
Silvis, P. 2016. Why Employee Engagement Still Matters. [PDF file] Greenleaf Center for Servant Leadership
The Evolution of Benefits in Western Europe: From Transactional to Transformational Western Europe insights from the Willis Towers Watson 2019/2020 Benefit Trends Survey