Given the current economic climate, how can we improve the value of our employee benefits without a significant increase in costs?
A. The increasing cost of employee benefits
and the shortage of qualified and skilled
resources are the two biggest global human
capital challenges organisations believe will impact them in the next three years, according
to findings of Aon Consulting’s 2008 Benefits
and Talent Survey.
Recognising this, organisations should change
the way they approach employee benefits to maximise the value to their employees.
Traditionally employee benefit programs
were put together then rolled out year after year
without review. Benefits were usually dollar-
based, ad hoc and delivered internally by HR.
The result was a short-term, reactive program
that fails to distinguish the organisation from
A more long-term, sustainable approach
considers benefits as an intrinsic part of your
And in difficult economic times consider
ing or enhancing the use of non cash bene
fits can in fact become a cost effective al
ternative to traditional cash based increases.
Keys to a successful Employee Benefits
Program (EBP) are:
• Partnership approach with supplier: Be
selective, ensure your supplier is not only
delivering value to your employees but also
to your company.
• Cover all the key benefit areas: A com
prehensive EBP must address lifestyle,
financial and health and wellbeing ben
efits. Education on key benefits is also
critical and EBP should actively support
the work/life balance of employees.
• Build in flexibility to adapt to existing and
future needs: Program should interact
with existing benefits, eg. super, em
ployee assistance program, share plan.
Allow for future changes or additions to
the benefits. Brand the EBP – it’s yours
• Communicate effectively and frequent
ly: Engage employees on the program
with a well planned communication and
education strategy. EBPs work best when
employees are fully aware of what is
available to them and the value of the
benefits on offer.
• Actively manage the program: Appoint
a program champion within the compa
ny. Monitor usage and trends to measure
return on investment. Regularly enhance
EBP to ensure ongoing relevance
By Lee Dureau, principal at Aon Consulting Australia. Tel: 02 9253 7534 or email email@example.com