What do points mean?

WHAT DO POINTS MEAN?

Employers' attitudes to personnel in tough times can be a key factor in influencing a successful outcome, as businesses that neglect staff during difficult trading conditions run the risk of de-motivated staff. But most personnel will feel motivated and satisfied if they believe their efforts are being rewarded, and will be better prepared when a recovery happens.

Flexible benefits have been around for about 20 years, and help employers to attract new staff and let personnel know that they are valued and appreciated. Such schemes also ensure that a company stands out from its competitors, enhancing the employer brand and helping raise awareness of reward packages amongst staff. These comprehensive schemes are becoming commonplace and, with greater access to sound advice being available, are now ideal for all types of business. In addition, technology and the availability of sophisticated administration systems have made such programmes less complex to run.

Flexible benefit initiatives allow personnel to vary their benefits packages to suit their personal needs, and enable them to be provided with their own budget to ‘spend' on the benefit in which they are most interested. Take-up rates vary, and employers, therefore, need to think very carefully before drawing up a list of possibilities. There's little point in offering something that's not relevant to anyone as it's imperative any form of benefit is perceivably exciting to employees, which in turn boosts uptake and engagement.

The wide selection of benefits available can include various types of insurance, wine club membership, carbon off-setting initiatives, telephone packages, childcare vouchers, pension, season tickets and retail vouchers. Holiday ‘purchase' whereby extra days off can be bought is a further option for time-poor employees eager to spend extra time with their family, for example. But what's really important is to consult employees over which benefits would interest them most, or to profile staff in terms of gender, age, marital status, interests and hobbies. It's only by knowing more about the target audience, and what they're looking for that it's possible to provide a popular and relevant benefit service. It's key that employers understand the needs of their personnel to ensure that the benefits act as a motivational tool. It's about providing a choice that will suit employees and their lifestyles.

When selecting which benefits to include in any scheme, companies should remember that no two people are alike - they'll have differing lifestyles and family commitments, so choosing the right flexible benefit can be difficult. Retail vouchers will always be popular, mainly due to the sizeable choice they provide, which gives recipients the opportunity to plan their purchases for a whole year.

Employers are increasingly aware of the value of vouchers, and they're seen as an ideal way of retaining staff. In addition, they provide recipients with more enjoyment than cash, which can often end up in the ‘housekeeping purse', paying another utility bill. Both men and women of all ages can use retail vouchers to buy fashion, homewares, electrical goods, experiences, DIY goods, cosmetics, accessories, books, CDs and DVDs. It's this huge diversity that ensures vouchers remain one of the top choices for flexible benefits programmes.

So, what should employers look for when selecting a retail voucher provider? Firstly, choose a retailer with a good geographical spread of stores, and one that provides an attractive discount structure and delivery times. In addition, it's recommended that companies use a retailer that offers ancillary services such as free loan of images, assistance with promotional ideas and copywriting - and also a store group that provides a diverse range of goods as it is this choice that will be more motivational than just offering a single line.

Providing employees with the freedom to choose a flexible benefits package that is relevant and which fits their lifestyle is always going to be a good motivator. Flexible benefits schemes are becoming ever more popular, but they need to be organised properly as part of an overall reward programme, with clear objectives and good support systems in place.

Catherine Forrest is Business Incentives Manager at House of Fraser