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Flexible benefits packages for international airways

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Proposal for introduction of flexible benefits for a major airline in the Middle East.

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Flexible benefits packages for international airways

  1. 1. FLEXIBLE BENEFITS PACKAGES: OPTIONS AND RECOMMENDATIONS FOR AN INTERNATIONAL AIRLINE Sandrine Bardot – CompensationInsider.com
  2. 2. 2   This assignment was given to me as a case study during the recruitment process for an international airline company from the GCC a few years ago. The content has been sanitized to delete any reference to the specific employer. New name is “Fly Right”. © 2013
  3. 3. Agenda 3 A – The approach Diversity at Fly Right The current package structure Objectives of flexible benefits Challenges in implementation Proposed approach B – Some initial ideas Deciding on levels of flexibility Customisation within the current package Travel-related Well-being and securing income Financial Education and career growth Home and family © 2013
  4. 4. 4 A – The approach © 2013
  5. 5. 5 Today and tomorrow – diversity is the key word  Geographic diversity :    54 country destinations at the moment, 86 destinations Around 60 outstations from Australia to Belarus, Canada to Sudan Cultural diversity :   A young workforce  3 main lines of business : airline, cargo and holidays   Around 6,000 employees, over 100 nationalities. Very different jobs : flight crew, cabin crew, ground, corporate Aggressive growth plans :    The Middle East is among the strongest airline growth regions (IATA) Fly Right operates 79 aircraft and has over 100 on order This results in increased labour competition, with employees being sourced globally, and risking being poached by regional competition © 2013
  6. 6. Current package structure (as per the recruiter) 6      Basic salary Housing allowance or company-provided accommodation (depending on the grade) General or transportation allowance Settling-in allowance Assumption : Fly Right also provides the 2 other main package components that are prevalent in the industry :   Some form of profit-sharing plan Discounted / free travel © 2013
  7. 7. Objectives of flexible benefits 7         Facilitate attraction of candidates in a tight labour market Improve employee retention Meet needs of the employees Recognise and celebrate employee diversity Emphasize package value to maximise employee appreciation (understanding of total rewards) Maintain competitiveness of compensation packages Be recognised as an employer of choice Maintain control over costs © 2013
  8. 8. Challenges in implementation 8        Disparate populations (jobs, salaries, locations) Technical and compliance Administration of plans (link to payroll system) Process management (choosing and changing at specific dates, estimate take-up rate of specific benefits, reach out to outstations and away-fromhome employees...) Leavers and outstanding balances Lifecycle changes (marriage / divorce, child birth, death of dependant, long-term sickness, promotion...) Continued PR to maintain participation © 2013
  9. 9. Proposed approach 9  Step 1 : feasibility study and decision   Collate and analyse employee views (focus group, questionnaire, manager interviews...), get feedback from other key stakeholders Integration with rewards philosophy :         How protective do we want to be towards employees What proportion of the package should be flexible How hierarchical our rewards are What is our desired market positioning (competitiveness) How open do we want to be about rewards Do we want core + options, opt-up/opt-down approach... Understand specific implementation challenges and scope out deployment plans (Pilot ? Progressively or at once ?...) Quantify the financial business case © 2013
  10. 10. Proposed approach – cont’d 10  Step 2 : implement    Find an administrator and HRIS provider Roll-out comprehensive communication and engagement plan, targeted at all eligible employee levels and with many different media Step 3 : monitor and adapt © 2013
  11. 11. 11 B – Some initial ideas © 2013
  12. 12. Deciding on levels of flexibility 12      Introduce flexibility within management of current package Set-up new benefits with some degree of choice within Set-up a fixed allowance for employees to choose which benefits to elect Set-up additional, voluntary benefits with or without salary sacrifice Mix and match approaches for best-fit to company culture and desired outcomes © 2013
  13. 13. 13 Customisation within the current package  Housing :   Could give the choice of upfront cash, companyrent (rent within a budget and any buy-up is deducted from payroll) or company accommodation, with support from the in-house property management department Profit-sharing :  Could be proposed full cash immediate, or with some form of company-matching if retained for a minimum period © 2013
  14. 14. Travel-related 14        Propose interlined discounted travel Free currency and buy-back Executive Lounge access Airport retail discounts Holiday discounts (car hire, hotels, dining, tours, cruises...) Personal / business travel insurance Earn buddy passes (eg : Southwest up to 4 per quarter depending on number of hours worked) © 2013
  15. 15. Wellbeing and securing income 15        Dental / vision care Health screening Wellness programme Increase in life insurance cover Dependants life insurance Different levels of medical cover / long-term disability insurance / ADD Long-term saving plan (eg Emirates : 5% basic / 12% employer) or addition to End Of Service contributions for pension purposes © 2013
  16. 16. Financial 16    Introduce a share scheme Give-as-you-earn charitable contributions and carbon-footprint offsetting Financial planning education (budgeting / personal finance, debt management, retirement planning, investment advice...) © 2013
  17. 17. Education and career growth 17     Tuition reimbursement Personal development programs Days of shadowing “Lunch and learn”, online training, after-hours workshops... © 2013
  18. 18. Home and family 18           Maternity leave (paid or unpaid) Childcare vouchers Administrative support for nanny visa etc Retail or leisure activities discounts / vouchers Gym membership Flexible working hours and telecommuting Buy or sell annual leave Paid-leave bank On-site and concierge services : dry-clean, on-site restaurant / ATM etc Employee Assistance Programme © 2013
  19. 19. Free resources from my blog 19      http ://compensationinsider.com/the-shelf-life-of-compensa / http ://compensationinsider.com/7-steps-to-compensation/ http:// compensationinsider.com/are-you-benchmarking-or-co http ://compensationinsider.com/reader-question-what-driv / © 2013 http://compensationinsider.com/relocations-do-you-off
  20. 20. Thank you ! 20 +971 566 172 864 Sandrine@Compensationinsider.com 240+ free articles on C&B ! Subscribe at : http://CompensationInsider.com Check my profile on LinkedIn for Sandrine Bardot Recommendations, Expertise and Consultant, trainer, free presentations. speaker, blogger © 2013 Twitter : @CompInsider

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