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Engageto PerformHow to deliver business resultsfrom reward strategy in 2013
ContentsIntroduction 										3Driving employee engagement to support business performance		 4Personalisation and partici...
What are the new ideas which should shape benefits and reward strategy fororganisations in the coming year?When we spoke t...
Employee engagement is increasingly recognised as the glue which bindspeople to organisational goals, making a critical di...
“The challenge that organisations have is to ensure that benefits and reward arepositioned as part of an overall employee ...
6When it comes to making changes to improve the return on investment ofreward and benefits, delivering more personalised b...
To get these choices right, organisations need to ensure they have the right insightaround what their employees want so th...
Key action areas•	 Personalisation benefits the business by increasingparticipation in benefits and reward and so improvin...
Organisations are recognising that doing things differently can improve theimpact of benefits and reward in a way which be...
E.ON’s Ant Donaldson says that bringing innovation into the organisation is as muchabout looking outwards as well as havin...
Getting employees to sit up and engage with benefits is critical in making adifference to business performance – and it is...
4.	Simplifying communication – Perhaps the quickest win for many organisationsin benefits communication is to move from po...
Organisations are increasingly seeing financial education as a core element ofthe benefits mix.Not so long ago, the idea t...
“It is difficult for organisations to commit to comprehensive programmes of financialeducation,”he says.“But there is stil...
ConclusionThere is no doubt that organisations face a full agenda in the year ahead in tryingto ensure employees get behin...
About EdenredEdenred helps organisations engage and motivate people to achieve enhancedperformance.This is achieved throug...
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Edenred Engage to Perform Whitepaper

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What are the new ideas which should shape benefits and reward strategy for
organisations in the coming year?
When we spoke to our clients and prospects at the beginning of this year about the
insight they would most like us to share, this was the question they wanted us to
answer.
So for our first whitepaper of 2013 we have done exactly that. In the pages which
follow we have brought together for you both the priorities for the year ahead and
how they will be addressed, as told to us by our ‘Edenred Practitioner Panel’, a group of
people whose job it is to ensure benefits contribute to people performance.
What emerges is a recognition that while benefits have the potential to play a critical
role in supporting our businesses, we need to work harder than ever to make that
investment pay off in five areas:
• Contributing to business performance by aligning benefits and reward to employee
engagement
• Making reward relevant through personalisation
• Using innovation to improve the employee benefits experience
• Increasing benefits uptake through communication
• Adopting financial education as a core benefit
Although budgets look set to remain tight in the year ahead it is clear that these ideas
are being backed up with action as just under half of organisations (41%) take the
opportunity to fully review benefits strategy in 2013.
In a year when many organisations are either implementing or preparing for autoenrolment, this represents a significant movement to ensure that benefits play to their
potential in supporting business performance.
Whether you are planning wholesale change to your benefits or simply looking for
ideas which can improve the performance of what you have in place, I hope this report
will help provide a catalyst for changes which help your organisation and your people
thrive in the year ahead.

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Edenred Engage to Perform Whitepaper

  1. 1. Engageto PerformHow to deliver business resultsfrom reward strategy in 2013
  2. 2. ContentsIntroduction 3Driving employee engagement to support business performance 4Personalisation and participation 6Making a difference with innovation 9Tackling benefits communication 11Bringing education into the benefits mix 13Conclusion 152
  3. 3. What are the new ideas which should shape benefits and reward strategy fororganisations in the coming year?When we spoke to our clients and prospects at the beginning of this year about theinsight they would most like us to share, this was the question they wanted us toanswer.So for our first whitepaper of 2013 we have done exactly that. In the pages whichfollow we have brought together for you both the priorities for the year ahead andhow they will be addressed, as told to us by our‘Edenred Practitioner Panel’, a group ofpeople whose job it is to ensure benefits contribute to people performance.What emerges is a recognition that while benefits have the potential to play a criticalrole in supporting our businesses, we need to work harder than ever to make thatinvestment pay off in five areas:• Contributing to business performance by aligning benefits and reward to employeeengagement• Making reward relevant through personalisation• Using innovation to improve the employee benefits experience• Increasing benefits uptake through communication• Adopting financial education as a core benefitAlthough budgets look set to remain tight in the year ahead it is clear that these ideasare being backed up with action as just under half of organisations (41%) take theopportunity to fully review benefits strategy in 2013.In a year when many organisations are either implementing or preparing for auto-enrolment, this represents a significant movement to ensure that benefits play to theirpotential in supporting business performance.Whether you are planning wholesale change to your benefits or simply looking forideas which can improve the performance of what you have in place, I hope this reportwill help provide a catalyst for changes which help your organisation and your peoplethrive in the year ahead.Introduction3edenred.co.uk/ehub
  4. 4. Employee engagement is increasingly recognised as the glue which bindspeople to organisational goals, making a critical difference to businessperformance.Having made its way to the top of the agenda at the end of 2012 with the launch of‘Engage for Success’, a campaigning organisation championing its benefits, employeeengagement is set to be one of the big themes for business in 2013.Our research found a near unanimous belief not only that benefits and reward havea role to play in improving employee engagement for employers but that in thecurrent environment it plays a more important role than ever in achieving that goal.“It releases the discretionary effort which employees give freely and which isextremely valuable – especially during the economic downturn and pressure on pay,”says Sean Morris, reward manager of Buro Happold.“It also has the ability to recruit,motivate and retain employees as well as increasing business performance and thebottom line.”Yet although many employers are awake to the business benefits of employeeengagement, it is clear that those of us responsible for benefits and reward have animportant role to play in ensuring organisations approach this in an effective way.The first challenge lies in influencing the leaders and managers who don’tunderstand the role benefits and reward play in supporting engagement andperformance. With 73% of those we spoke to saying this was the case in theirorganisation, clarifying this link is a clear priority if efforts to link engagement andbusiness performance are to succeed.As Rachel Abbot, Reward Manager of John Lewis Partnership points out, at its mostbasic level, the task is to draw a line between engagement and outcomes for thebusiness.“Employees work to earn money and it is therefore critical reward supports anengagement strategy aligned to and in support of the business strategy,”she saysThe second challenge comes in ensuring that when reward and benefits are used todrive employee engagement that they remain consistent with the strategy, culture,style and behaviour of organisations.1 Driving employeeengagement to supportbusiness performance4edenred.co.uk/ehub
  5. 5. “The challenge that organisations have is to ensure that benefits and reward arepositioned as part of an overall employee engagement approach including other keyareas such as, leadership and culture, processes and approaches to business, qualityof work and environment, development and training as well as other things. Benefitsshould not be seen as simply a short cut to drive engagement”, says Alistair Denton,Managing Director of employee benefits at Edenred.“Pay, benefits and recognition allneed to align to the way an organisation does business.”The third challenge is in ensuring that organisations do a good job of understandingthe link between new investment in reward and any potential business outcomes.“Many organisations already track engagement so it makes sense where possible touse these surveys to understand what is driving it and what employees feel abouttheir reward and benefit packages”says Ant Donaldson senior specialist, employeebenefits at E.ON.So while there are significant gains to be made through a focus on employeeengagement, it is a mistake for organisations to think this comes for free. There is ajob to be done not only in aligning reward and benefits and employee engagementto business performance but also ensuring our organisations understand theongoing investments in management and communication which need to supportthis. Our job should be to take a strategic lead in the year ahead.Benefits and reward - key findings86% of employers believe benefits and reward improve employeeengagement68% say it contributes directly to employee performance73% of organisations say their leaders and managers don’tunderstand their contribution to performanceKey action areas• Take a lead in ensuring organisations understand the linkbetween reward, engagement and business performance• Ensure reward strategy is aligned to company culture, values,customer needs and leadership behaviour• Track the impact of any changes you make through qualitativeand quantitative measures so you can establish what isworking and what isn’t5edenred.co.uk/ehub
  6. 6. 6When it comes to making changes to improve the return on investment ofreward and benefits, delivering more personalised benefits for employeesis the top priority for the year ahead.But what is the case for organisations to place such emphasis on this area of benefits?The first argument is driven by budget. Elizabeth McVeigh, HR Manager of KwikFit says personalisation allows her organisation to ensure that the money investedin benefits is being used as effectively as possible by ensuring employees get thebenefits that are relevant to them.Another reason, says Rachel Abbott of John Lewis Partnership, is that for employers,personalisation allows organisations to improve engagement in benefits and reflectthe diverse needs of the workforce. This also helps the recruitment and retention ofthe right people.The last driver behind personalisation is the need to meet expectations aroundcommunications and choice that employees bring to the workplace from their livesas consumers.“People increasingly expect personalised and relevant experiences outside of work –in terms of what they buy, when they buy and how they receive information. Thoseexpectations don’t disappear when they enter a work environment and that is what issetting the bar as to how we go about personalising reward and benefits,”says AndyPhilpott, Sales and Marketing Director at Edenred.So how do organisations put personalisation to work effectively in the year ahead?The foundation of personalisation is giving employees the choices in the benefitsand reward they can choose from.While the concept of choice sounds straightforward, the challenge is fororganisations to ensure they make the process of accessing the benefits andchoosing the benefits easy so employees engage in the process and begin touse the benefits on offer , says Edenred’s Alistair Denton“Employers need to carefully consider what level of benefits they include in theirbenefits scheme because if there is too much choice there is a chance that employeesswitch off and don’t participate and also the ongoing admin and support of thescheme can become cumbersome,”he says.“A sensible approach is to ensure you arecovering the key areas of health, long term financial well-being and on-going savingsand target a total of between 6-10 benefits.”2 Personalisation andparticipationedenred.co.uk/ehub
  7. 7. To get these choices right, organisations need to ensure they have the right insightaround what their employees want so they can build up the right range of benefitsand communicate them effectively.“We are seeing a better understanding among employers that techniques whichare common in marketing – research, segmentation according to needs and interests– should be used to create the right range of benefits and reward,”says Edenred’sAndy Philpott.“From a communications perspective it has its benefits too. Asking the rightquestions of employees is engaging in itself and gives a sense that employers areconcerned about their needs. This in turn helps you understand the kind of issuesyou need to talk about and the employee groups who will be interested in order tocommunicate certain benefits.”E.ON’s Ant Donaldson says that for the many organisations who don’t have the rightdata on their employees to start personalising benefits in a meaningful way, thisapproach is important but one which must be approached with care.“Of course we can learn from consumer marketing and it is useful in improvingparticipation and engagement with benefits,”he says.“But you have to be carefulwhat you copy and don’t overdo it. Bear in mind employees come to work to workand get paid, they won’t necessarily see themselves as customers and you have to becareful not to cross that line.”In fact, for many the most sensible step to personalisation is likely to be puttingin place systems like total reward which can start the process of tracking benefitstake up across the organisation while delivering regular tailored information to theemployees about what they receive so they are reminded of the choices they havealready made.While for many organisations this may seem like hard work, our research found afirm belief that any improvements to reward and benefits reinforced the perceptionamong employees that their organisation was looking after them – an opportunitywhich few employers interested in employee engagement can afford to miss.Key fact80% say improving benefits and reward is important as it showsorganisations are looking after their employees7edenred.co.uk/ehub
  8. 8. Key action areas• Personalisation benefits the business by increasingparticipation in benefits and reward and so improving ROI• Insight into the needs and priorities of different employeegroups is the foundation of personalised benefits programmes• Choice is important in ensuring employees get accessto the benefits they need but too much choice can becounterproductive• Personalised benefits communication in the form of totalreward statements should be a priority for organisationswishing to tailor benefits and reward provision8edenred.co.uk/ehub
  9. 9. Organisations are recognising that doing things differently can improve theimpact of benefits and reward in a way which benefits business performance.Whether it is a symptom of the“more for less”environment or a growing recognitionthat incremental improvement of what you already do often provides bigger gainsthan wholesale change, driving innovation in reward and benefits is the third bigtheme which emerged from our research as a priority for the year.The first major opportunity here is the use of HR policy to supplement core benefitsprogrammes – something which our research identified as the second biggest driverof return on investment.One Edenred client which stands out in this area is a financial services business whoused this approach to improve the way the organisation supports working parents.“We combined several of our existing benefits and added some new elements intoa programme specifically designed for working parents,”says one of their team.“Theprogramme is not just to support women going on maternity leave, although thatis one element, but it also includes elements that can apply to all types of familyconstructs and includes support for managers dealing with team members who haveparental commitments and responsibilities. The programme is flexible, so individualscan take part in the elements that apply to them.”Ant Donaldson of E.ON says that to make this approach work, making connectionsand cross-working with other members of other teams is critical like OccupationalHealth, Pensions, HR Policy, Internal Comms and so on, is critical – as is recognisingthe need to ensure it is a priority for all of them in order to keep it going.The other common area where organisations are looking for innovation is in the areaof benefits delivery – this is the second ranking priority for action in the year aheadfor the organisations we surveyed.Here, Sean Morris of Buro Happold is one of many who see a role of better use oftechnology to solve some of the problems which impact on access and awareness ofbenefits they are receiving.“We’re interested in making it far more straightforward for employees to haveimmediate access to information and data wherever they are in the world 24/7,”he says.“Total Reward Statements, pensions modellers, single logons so thatyour main logon accesses many other systems rather than having to register andset up separate accounts: these are all things which can help improve benefitsperformance.”Elizabeth McVeigh, HR Manager of Kwik Fit adds that technology is critical insupporting the journey towards personalisation of benefits.3 Making a differencewith innovation9edenred.co.uk/ehub
  10. 10. E.ON’s Ant Donaldson says that bringing innovation into the organisation is as muchabout looking outwards as well as having your own ideas about what you want toimprove.“I strongly advocate looking closely at what benefits providers are doing, lookingat the press and getting out to events,”he says.“As well as looking outside of yourorganisation you need to look outside of your sector to find out what’s working.All of this is very important when it comes to understanding how you can improveofferings through innovation.”So in the year ahead, taking a step back and asking yourself what you can simplifyand how can you can work more effectively with the tools you have will be animportant element in ensuring reward and benefits support business performance.Key factJust over three-quarters (76%) of employers say they will have thesame or less to invest than last yearKey action areas• Understanding how existing benefits and HR policy can be puttogether to address specific employee needs is an importantchannel of innovation in benefits• Better use of technology allows organisations to improvecommunications and access to benefits• Looking for new ideas from outside the organisation amongcompetitors, suppliers and employers outside of your sectorcan fuel innovation10edenred.co.uk/ehub
  11. 11. Getting employees to sit up and engage with benefits is critical in making adifference to business performance – and it is about more than social media.The importance of benefits communication in the year ahead is a theme that cutsthrough every aspect of planning for the year ahead. With low levels of uptakea perennial barrier preventing benefits from fulfilling their potential to supportemployee engagement and performance, it is understandable that communicationsis seen to hold the key to improvement.“While initiatives which focus on choice, personalisation and changes we make tobenefits delivery, the fact remains that we still need employees to be aware of whatwe are offering in the first place,”says Edenred’s Andy Philpott.“No organisation canafford to stop thinking about improving communication.”E.ON’s Ant Donaldson says that in confronting this task, organisations face twocommon challenges.“The first is making sure benefits communication competes with all the othermessages employees are constantly subjected to,”he says.“The second is to strike abalance between targeting communications, while ensuring what you have to say isimpossible to miss by the vast majority of colleagues.”So how should your organisation be thinking about tackling this in the year ahead?Based on our research and follow-up conversations with practitioners, five dominantthemes emerged.1. Smart engagement – data is important in informing benefits and rewardpropositions but so too is talking and listening to employees about what theywant and why they want it. These conversations are the starting point for betterengagement in reward and need be core to benefits delivery.2. Working with managers – many benefits can help managers support employeesin their teams when problems arise. The problem is that while organisations taketime to communicate benefits to employees, they fail to talk to managers abouthow they can be used to resolve these problems. Organisations should focus onways of ensuring managers act as a key channel for signposting benefits supportavailable.3. Peer-to-peer communication – The most powerful advocates for your benefitsand reward are the employees who use them. They can point out how theywork and play role in demystifying new benefits when you introduce them.Think about how you can use employee champions to strengthen benefitscommunication.4 Tackling benefitscommunication11edenred.co.uk/ehub
  12. 12. 4. Simplifying communication – Perhaps the quickest win for many organisationsin benefits communication is to move from policy-based communication togiving a more simple explanation of what is available. Illustrations, infographicsand interactive tools can be used to support benefits communications and moveaway from wordy, text based approaches.5. Get the timing right – Well-timed campaigns which tie into seasonal themesor national awareness weeks ensure that benefits activity links to the agenda inthe outside world. They can also provide much-needed platforms to talk aboutbenefits like eyecare which often get forgotten.Interestingly, the message from the practitioners around improving benefitscommunication is to focus less on trying to perfect the right channels tocommunicate – something which E.ON’s Ant Donaldson believes organisationswill never get completely right – but more in ensuring the style of communicationis one which will engage employees in the message.Key factUsing social and mobile channels to improve benefitscommunication is the lowest priority for organisations in2013 with only 22% of organisations rating it as one of theirtop prioritiesKey action areas• Addressing the effectiveness of benefits communication iscritical for organisations who want to increase employeeparticipation in benefits and reward• Employers must accept that improving benefits communicationstarts with a dialogue with employees around their needs– there is a close link to personalisation and effectivecommunication• As there is limited scope to change the channels which willreach employees, employers need to place an emphasis inimproving the targeting, content and style of communications12edenred.co.uk/ehub
  13. 13. Organisations are increasingly seeing financial education as a core element ofthe benefits mix.Not so long ago, the idea that employers should facilitate learning and educationonly extended to ensuring their employees had the right skills to do their jobs.Now, one of the major trends in benefits is the provision of education – particularlyfinancial education – something confirmed by our research which found 59%of organisations had the implementation of some sort of financial educationprogramme planned for the year ahead.Sean Morris of Kwik Fit says it is one those organisations committed to supporting itsemployees with this benefit.“The essential aspect of financial education for our business is it gives employeesa better understanding of the impact of their chosen benefits on their financialand tax position,”he says.“It is also becoming an important issue which impacts onwellbeing, as the stress of financial constraints pervade all aspects of work and homefor many people at present.”Another benefit of financial education, says Rachel Abbott of John Lewis Partnership,is the role it plays in helping employees make the best decisions that suite their owncircumstances when it comes to thinking about reward and benefits that are right forthem.“Learning empowers, supports and helps employees stay engaged and in control,”she says.One last benefit of incorporating financial education into the benefits mix is therole it can play in underpinning benefits communication and driving uptake of thebenefits that are available.“A lot of benefits communication focuses on awareness but then falls short inshowing how benefits can play a part in improving an individual employees’financialwellbeing,”says Andy Philpott of Edenred.“By moving people from awareness ofbenefits to understanding what they do and how they work, financial education canbe seen as an important activity in benefits communication.”At a time when time and budgets are tight in organisations, E.ON’s Ant Donaldsonsays employers need to be creative about how they bring financial education into thebenefits mix and this need has been highlighted by pensions auto-enrolment.5 Bringing educationinto the benefits mix13edenred.co.uk/ehub
  14. 14. “It is difficult for organisations to commit to comprehensive programmes of financialeducation,”he says.“But there is still a lot that can be done. We have been usingonline modules from the Money Advice Service which are provided free of charge.There is also a growing sense that benefits providers should be looking to bundlefinancial education elements in with their products.”So whether it is to extend existing employee wellbeing initiatives, improve benefitscommunication or drive participation in benefits programmes, the clear messagesfrom our research is that every organisation should consider what financial educationcan do to improve engagement and performance.Key action areas• Financial education is a tool for empowering employees tomake the best decisions about the reward and benefits theyare offered• As many employees face pressure from stagnating salaries andthe increased cost of living, organisations are also recognisingfinancial wellbeing is an important element of employeewellbeing• Financial education can also support benefits communicationand has the potential to improve benefits uptake inorganisations14Key factUsing financial education as a tool for benefits communicationranks as one of the top three priorities for organisations in 2013edenred.co.uk/ehub
  15. 15. ConclusionThere is no doubt that organisations face a full agenda in the year ahead in tryingto ensure employees get behind the goals of their business and perform to their fullpotential.Despite this our research shows significant opportunity for reward and benefits toshape the performance of organisations.On a practical level, with salaries remaining depressed, reward and benefits canplay a big role, helping to diminish the impact of pay packets which are eroded byinflation.From a strategic perspective, they can be deployed to drive employee engagementand support specific business objectives while retaining and attracting the rightpeople.Getting this right requires resourcefulness, creativity and a close eye on how benefitsand reward can support business objectives by working smarter with the limitedtime and budgets available.Keep up to date with all the latest content from Edenred by registering for E.Hub,an online resource of information and knowledge exchange for HR professionals.Visit edenred.co.uk/ehubFollow us: https://twitter.com/Edenreduk http://uk.linkedin.com/company/edenred-uk-group-15Hubedenred.co.uk/ehub
  16. 16. About EdenredEdenred helps organisations engage and motivate people to achieve enhancedperformance.This is achieved through provision of unique and unrivalled total reward andrecognition solutions, including the widest range of incentives, rewards and benefitssolutions, individually designed to fit your audience, your goals and your budget.We do this through vouchers, prepaid cards, online platforms and digital SMSproducts to help engage and motivate your employees, customers and businesspartners. Over 20 different solutions last time we checked.• Employee Benefits solutions that encompass the management of your flexibleand voluntary benefits, employee discounts and salary sacrifice schemes, that canbe deployed to drive engagement at a company-wide level or focused aroundspecific segments of your workforce.• Incentives and Rewards solutions that can motivate, create behavioural changeand improve performance, centred around the widest choice of reward platformsand mechanisms that offer the recipient the widest choice of redemption options.• Expense Management solutions that help streamline and simplify your routinepayment processes, reducing administrative burden, saving money and helpingmake life easier for everyone.• Communications Services that ensure your investment in incentives, rewards andbenefits are understood, valued and appreciated, delivering maximum return foryour business.To find out more, visit edenred.co.uk, call us on 0843 453 0053or email sales@edenred.co.uk16edenred.co.uk/ehub

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