The benefits of communication

A new study finds a clear link between effective communication and benefit value perception

If you thought just having a well documented corporate benefit strategy was enough to attract and retain talent, you might be in for a surprise. A majority of the respondents to the 2013 Asia Pacific Benefit Trends Survey said value perception does not increase noticeably as benefits spend increases. In other words, improving employee perception of the value of the benefits should be a key objective for the organisation.

Benefit programmes typically account for one-third of employee compensation costs and are considered an important talent management strategy to differentiate from the competition. It is no longer a 'nice-to-have' but a 'must-have', agree most employers. However, the dilemma is, how should a company increase the perceived value of benefits offered while also managing costs?

Having a benefits strategy that is linked to the business strategy can serve as a significant competitive advantage for employers, says Sanchit Vir Gogia, founder & CEO, Greyhound Knowledge Group. "The issue is more than just communication. HR needs to make a business case and convince the CEO and CFO why the company needs an inclusive rewards programme. The HR department should make, an employee engagement index, and measure it quarter-on-quarter against the amount invested. It should be able to quantify how much employee engagement has increased at the end of four quarters against the given Rs X crore of investment," he says.

An employee benefit programme is no longer just a strategy to attract and retain talent - it has become an engagement tool. According to Gogia, employees should be asked what they want in their benefit programme. Most companies use a one-size-fits-all approach to their group employee benefits communication strategy. However, a tailored approach with the message designed for specific employee segments is more effective, he says. Not just employee demographics, but also the channel in which that message is communicated is important.

"There are 3Cs to an employee benefit communication programme - it should be concise, consistent and have cadence. HR must create a year-round benefits communication plan, use simple and clear language, explain the business realities of any changes and goals and treat employees as business partners," says Gogia.

However, employees value different benefits according to their personal preferences. A flexible benefits programme, which allows employees to choose benefits that suit their current situation, is becoming a popular strategy, finds the Towers Watson study. Although traditional benefits such as annual leave, medical and life insurance remain the most prevalent, new lifestyle-related benefits, such as a gym membership, flexible working hours, buy or sell annual leave are also on the rise. The study says employers must look at total health management approach rather than just providing benefits that treat illnesses.

For any benefit plan to be effective, it has to be communicated well. Companies should broaden the use of the internet to provide resources and information. Most companies use the internet to offer basic plan and coverage information. However, some innovative companies have successfully used the internet to promote wellness, preventative care and stress reduction. Smart companies, like IBM and Microsoft have enabled all employees to blog and have incorporated those blogs on their websites.

That said, communication alone is not going to make much of a difference. Companies must help employees make the best benefits choices by educating them so that they can avoid confusion and needless worry about their benefits decisions.

In sum, by clearly aligning the vision of employee benefit programmes with the employer's business goals, HR will function as a business partner. Effective benefit communications will ensure that both employers and employees get the most from the investment in benefits.