Transcript of "Revising the Design and Function of Benefits"
Asha Arvind, Essar GroupRevising the design and function ofBENEFITS
Evolution of Employee Benefits Past Present Future “Evolution is not a force but a process. Not a cause but a law.” - John Morley
Evolution of Employee Benefits - Past• An important part of an organizations employment contract.• It helped differentiate one employer from another.• The Benefits were fixed and defined.• It gave the same coverage to all employees.• It was relatively straightforward to communicate & administer.• The company’s culture was more paternalistic.• It was useful in unionized environments.• Few employees understood the actual value of their benefits.• Employees tend to attach little value to it.
Evolution of Employee Benefits - Present• Focus on developing an Employment Deal (ED). – “As defined by the Corporate Leadership Council (CLC), the Employment Deal is the set of attributes that employees perceive as the value they gain through employment in an organization. The CLC states that the ED is the key driver of attraction and commitment in the labor market.”• Benefits provides choice, flexibility and control.• It support the organizational and human resource strategy.• It meets the needs of its diverse workforce.• Employees can opt out of coverage (e.g., through their spouse).• Employees can increase the coverage & can contribute.• Both employees and employers contribute toward benefits costs.
Evolution of Employee Benefits - Future• Focused on continual improvement of its employment deal.• One cannot halt the progress.• Benefits provides greater choice, flexibility and control.• Flexible Work Arrangements - A better work-life balance.• Health & WeIlness - Biometric Clinics, Wellness Assessments.• Increase Purchasing Power - Tie-up for discounts & offers.• Time Off Work - The ability to purchase extra vacation days.
Moving beyond Compensation Looking Beyond the ObviousiGen Ready Wellbeing Value Add“Happiness is not a matter of intensity but of balance, order, rhythm and harmony.” - Thomas Merton
Moving beyond Compensation - iGen Ready• Ensure alignment. Benefits should fit the way organization works.• It about enabling employees to take care of themselves.• Understand that change is inevitable. – Legislation, competitors, organizations and the people within them are constantly evolving.• To continue to offer relevant employee benefits – Conduct systematic diagnostic surveys on employee attitudes and desires.• Start with minor tweaking not major overhaul.• Flexibility means more complexity. Use technology.• Communication is key. Do it early, often and in a variety of ways.
Moving beyond Compensation - Wellbeing• Next component of the strategy would be Health & Wellness.• The iGen would be more Health & Wellness conscious.• Pay for Prevention Strategy. – Wellness would take a front seat in the future of healthcare as organizations look to being more proactive in healthcare management.• Provide Employee Assistance Program.• If implemented correctly and balanced appropriately with compensation, benefits can position a company to be in the league of “Employer of Choice.”
Moving beyond Compensation - Value Add• Organizations are also moving toward designing benefit plans – That will reach across geographic locations, – As well as meet the needs of a diverse workforce.• Companies will strive to benefit employees without changing their CTC, which will see the emergence of non-cash and non- monetary benefits. (PeopleMatter - Special Edition on Total Rewards 2012)• Increasing the purchasing power of employees.• Tie-up with leading online brands to offer discounts.• Create a robust automated Rewards & Recognition Platform.