The document outlines the services and strategies of Fluid Consulting Limited, a human resources consultancy specializing in employee retention, selection, and reward systems since 2006. It details various employee benefits, salary structures, and bonus schemes while providing real-life examples of organizations implementing these strategies successfully to improve employee engagement and retention. Additionally, it offers guidance on launching flexible benefits programs and addressing key reward issues in the workplace.

1. Reward by Fluid January 2010

2. Page 2Contents3-4 Introduction to Fluid5-12 Benefits13-15 Flexible benefits16-21 Pay and salaries22-24 Bonuses25-32 Reward33-45 Real-life examples46-47 Exercise48-49 Case studies49-50 Conclusion and questions

3. Page 3Introduction

4. Page 4Introduction to FluidFluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD 10 years in banking10 years in Human Resources consultancyFluid trading since 2006The core services provided by Fluid are:Retention

5. Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

6. Page 5Benefits

7. Page 6ONLINE PROVIDERS

8. Enrolment period

9. Pre-selection modelling

10. Alerts and updates

11. Access by net/intranet

12. Personal data archive

13. Online advice and helpdesk-phone/email

14. Software/admin hosted by client/supplier

15. Implementation cost per 1000 people if in-house/outsourced

16. Ongoing cost per head for admin Benefits (1 of 7)

17. Page 7TOP TEN

18. Free car parking

19. Paid time off for medical & dental appointments

20. Counselling/employee assistance programme

21. Long-service awards

22. Car allowances

23. Optical benefits

24. Private medical insurance

25. Company car scheme

26. Permanent health insurance

27. Childcare vouchers Benefits (2 of 7)

28. Page 8RETURN ON INVESTMENT

29. Cost per benefit based on 1000 employees, salary average £25000, cost per employee (cpe), cost for all (cfa)

30. Pension £2000(cpe), £2M(cfa), based on 8% employer contribution

31. Pension via salary sacrifice -£160(cpe), -£160000(cfa), employers’ NI saving on 5% employee contribution

32. Life assurance £70(cpe), £70000(cfa) 4 x salary

33. PMI £450(cpe), £450000(cfa)

34. Health screening £350(cpe), £350000(cfa)

35. EAP £12(cpe), £12000(cfa) Benefits (3 of 7)

36. Page 9RETURN ON INVESTMENT

37. Dental insurance £150(cpe), £150000(cfa), mid-range cover

38. Holiday £480(cpe), £480000(cfa) five days over statutory minimum as 1/260th salary

39. Childcare vouchers -£373(cpe), -£14920(cfa) employers’ NI saving from £243 per month into vouchers

40. Bicycles -£90(cpe), -£1800(cfa) employers NI and VAT saving from a £300 cycle

41. Voluntary benefits £8(cpe), £8000(cfa) online packaged voluntary benefit scheme

42. Xmas party £80(cpe), £80000(cfa)Benefits (4 of 7)

43. Page 10BENEFITS AGENCY STAFF ARE ENTITLED TO

44. Training schemes or training days 73%

45. Team drinks & social functions 72%

46. Contributions to company or private pension 51%

47. Personal incentives such as meals and events 50%

48. Mobile phone supplied by employer 49%

49. Flexible working hours/flexi time 45%

50. Dress down policy 44%

51. Private medical insurance 39%

52. Team bonuses other than individual 39%Benefits (5 of 7)

53. Page 11BENEFITS STRATEGY REVIEW

54. Regular reviews

55. Balanced benefits

56. Communicate

57. Pressure

58. Be competitiveBenefits (6 of 7)

59. Page 12CHARITIES, % that offer benefits

60. Reduced hours 84%

61. Job-sharing 68%

62. Home-working 68%

63. Childcare vouchers 64%

64. Occupational health 64%

65. Flexitime 64%

66. Compressed hours 56%

67. Sabbaticals 56%

68. Car allowance 52%

69. Loans 52%Benefits (7 of 7)

70. Page 13Flexible benefits

71. Page 14WHAT YOU NEED FOR A SUCCESSFUL FLEX LAUNCH

72. Build a strong business case to obtain senior buy-in

73. Select an experienced broker to negotiate favourable terms

74. Choose a technology provider with a proven record

75. Don’t be over-ambitious initially

76. Spend as long as it takes cleansing your benefits data

77. Appoint a project team with at least one senior championFlexible benefits (1 of 2)

78. Page 15Choose a system with built-in rules that prevent uninsured liabilities or additional administrative burden

79. Communicate clearly with employees at all stages including focus groups initially and feedback surveys after launch

80. Remember that flex is flexibleFlexible benefits (2 of 2)

81. Page 16Pay and salaries

82. Page 17SALES & MARKETING

83. Director, average £168/basic £128

84. Senior function head, average £111/basic £95

85. Function head, average £88/basic £76

86. Department manager, average £71/basic £60

87. Section manager, average £51/basic £44

88. Team leader, average £40/basic £37

89. Sales/marketing executive, average £33/basic £31

90. Professional, average £29/basic £26

91. Junior professional, average £20/basic £19Pay and salaries (1 of 5)

92. Page 18FINANCE

93. Director, average £165/basic £133

94. Senior function head, average £116/basic £97

95. Function head, average £87/basic £78

96. Department manager, average £69/basic £63

97. Section manager, average £53/basic £49

98. Section leader, average £46/basic £44

99. Senior accountant, average £37/basic £35

100. Accountant, average £28/basic £27

101. Junior accountant, average £22/basic £21Pay and salaries (2 of 5)

102. Page 19VOLUNTARY SECTOR

103. Chief Executive £80

104. Director £68

105. Senior function head £53

106. Function head £44

107. Department or section manager £36

108. Senior specialist/professional/technical £30

109. Specialist/professional/technical £22

110. Junior specialist/professional/technical £18

111. Trainee specialist/professional/technical £15

112. Trainee non-professional £13Pay and salaries (3 of 5)

113. Page 20ANNUAL SALARY REVIEW

114. Work out your budget

115. Review reward principles

116. Analyse market pay data

117. Gain budget approval

118. Communicate the timetable

119. Support line managers

120. Fine-tune the process

121. Explain decisions to staff

122. Inform payrollPay and salaries (4 of 5)

123. Page 21SALARY SURVEYS

124. Ask who produced the survey

125. Check out the methods of data collection

126. Make sure the sample size is big enough

127. Pay attention to all reward package elements

128. Understand the key statistics

129. Get the right match

130. Decide your market position

131. Use your judgementPay and salaries (5 of 5)

132. Page 22Bonuses

133. Page 23Director, average bonus £49/basic £134

134. Senior function head, average bonus £30/basic £106

135. Function head, average bonus £16/basic £80

136. Department manager, average bonus £10/basic £63

137. Section manager, average bonus £7/basic £49

138. Team leader, average bonus £4/basic £42

139. Senior, average bonus £3/basic £35

140. Professional, average bonus £2/basic £29

141. Junior professional, average bonus £1/basic £21

142. Trainee, average bonus £1/basic £16Bonuses (1 of 2)

143. Page 24BONUS/INCENTIVE SCHEME PERFORMANCE MEASURES

144. Company performance/profitability 46%

145. Individual performance 35%

146. Customer service/satisfaction 18%

147. Productivity 17%

148. Sales targets 11%

149. Teamworking/team objectives 11%

150. Absence/attendance levels 6%

151. Health & safety 6%

152. Quality measures 4%

153. Exceptional performance 4%Bonuses (2 of 2)

154. Page 25Reward

155. Page 26COMMUNICATING REWARDS

156. Benchmark your current position

157. Select your benefits with care

158. Introduce two-way communications

159. Totally rewarding

160. Talk to your advocatesReward (1 of 7)

161. Page 27MOST IMPORTANT REWARD ACTIVITIES

162. Benefits

163. Grading structure/job evaluation

164. Bonus schemes

165. Annual salary review

166. Harmonisation of pay/benefits/grading

167. Pensions

168. Total reward

169. Performance-related payReward (2 of 7)

170. Page 28MOST TIME-CONSUMING REWARD ACTIVITIES

171. Benefits

172. Annual salary review

173. Grading structure/job evaluation

174. Bonus incentive schemes

175. Salary benchmarking

176. Pensions administration

177. Reward strategy

178. Share schemes and options

179. Equal payReward (3 of 7)

180. Page 29MAIN REWARD ISSUES, 1st priority %, 2nd priority %

181. Base salary competitiveness 47%(1), 20%(2)

182. Effectiveness/competitiveness of PRP 29%(1), 26%(2)

183. Cost control 29%(1), 28%(2)

184. Cost reduction 28%(1), 28%(2)

185. Total reward competitiveness 25%(1), 27%(2)

186. Improving effectiveness of current benefits spend 20%(1), 28%(2)

187. Harmonisation and/or removing inconsistencies 20%(1), 30%(2) Reward (4 of 7)

188. Page 30MAIN BENEFITS ISSUES, 1st priority %

189. Final-salary pensions costs 36%

190. Employees do not understand benefits package 35%

191. Long-term sickness provision/costs 25%

192. Uncompetitive benefits package 23%

193. Company cars 22%

194. Lack of joined-up thinking with overall package 22%

195. Employees demanding more flexibility 16%

196. Employees demanding more benefits 15%

197. Private medical insurance costs 15%Reward (5 of 7)

198. Page 31REWARD DURING RECESSION

199. Avoid panicking

200. Think long-term

201. Engage with your employees

202. Check what your competitors are offering staff

203. Keep your staff up to dateReward (6 of 7)

204. Page 32MAKING BUDGETS STRETCH FURTHER

205. Get flexible

206. Communicate

207. Promote cycling

208. Use shares

209. Charity begins at work

210. Look at top pay levels

211. Recognise your employees formally….

212. ….and informally

213. Bulk buy your benefits

214. Assemble a packageReward (7 of 7)

215. Page 33Real-life examples

216. Page 34ORGANISATION A-TOTAL REWARD & BENEFITS, 10300 employees, manufacturing

217. Introduced a specific brand following focus groups, initially using paper and online selection methods

218. Issued total reward statements to all employees to support the annual pay negotiations and the recruitment strategy

219. Transferred the scheme online with computer access on-site and added benefits to suit a wide range of peopleReal-life examples (1 of 11)

220. Page 35ORGANISATION A-ACHIEVEMENTS

221. Increase to 81% from 74% of the workforce making at least one flexible benefit selection

222. Employees now have more flexibility to take benefits or cash options

223. Benefits support work-life balance, wellbeing, employee engagement, environmental issues, savings and parental needs

224. Increased retention rate as voluntary leaver rate cut by 4%

225. Employees can access their statements and check their selections at any time

226. Trade union support for the communication of the benefits to membersReal-life examples (2 of 11)

227. Page 36ORGANISATION B-NEW MISSION AND VALUES REQUIRING A CHANGE IN BEHAVIOURS THROUGH AN ADVANCED RECOGNITION CULTURE, 3500 employees, financial services

228. Conducted an employee survey which identified that employees would feel more engaged if they felt more valued. Those departments with high recognition scores were asked to disseminate best practice.

229. Created a new language for recognition with visible totems and tools presented to team leaders and managers in a masterclass run by an external expert.Real-life examples (3 of 11)

230. Page 37ORGANISATION B-NEW MISSION AND VALUES REQUIRING A CHANGE IN BEHAVIOURS THROUGH AN ADVANCED RECOGNITION CULTURE, 3500 employees, financial services

231. Awards dinner and long-service awards were revamped and an online Thank You site was created, offering cards and small gifts.

232. Introduced awards for employees, allocated by a staff voting process.Real-life examples (4 of 11)

233. Page 38ORGANISATION B-ACHIEVEMENTS

234. Thank You site now receives about 1900 entries a month from people appreciating their colleagues

235. More than 400 Thank You cards are sent every month

236. Very positive feedback from revamp of long service award

237. Employee survey found recognition had improved from 68% to 76%Real-life examples (5 of 11)

238. Page 39ORGANISATION C-CHANGE OF CULTURE BY DEVELOPING A PERFORMANCE APPROACH THAT REWARDS THE DELIVERY OF RESULTS AND RECOGNISES EMPLOYEES’ CONTRIBUTION, 800 employees, chemicals

239. Introduced a ‘pay for performance’ approach to all staff, linking reward to individual and team performance

240. Created a simplified pay and grading structure to give managers greater flexibility and a performance review process to identify top performers

241. Developed innovative ways to recognise the contribution of all employees, including granting 200 free share options for all employeesReal-life examples (6 of 11)

242. Page 40ORGANISATION C-ACHIEVEMENTS

243. Strong link between performance and increased shareholder value

244. Universal buy-in and support from business managers

245. Redesigned sales incentives seen as a valuable tool for driving and rewarding profitable growth

246. Many individuals and teams exceeded sales targets

247. Results surpassed expectations with profit up 50% to $48M

248. High employee engagement, with 70% happy with the rewards they receive, and 84% proud to work for the companyReal-life examples (7 of 11)

249. Page 41ORGANISATION D-MODERNISED TERMS & CONDITIONS, INCLUDING INCENTIVES TO ALIGN THEM WITH COMPANY OBJECTIVES, 2600 employees, retail

250. Invested an extra £2M in the retail payroll budget & benchmarked pay against competitors

251. Linked individual pay to actual sales turnover and defined performance criteria in consultation with the works council. This took into account existing bonuses, incentives and terms & conditions

252. Communicated changes via 13 nationwide area briefings in two weeks with back-up documentation and carried out additional employee survey to measure levels of satisfactionReal-life examples (8 of 11)

253. Page 42ORGANISATION D-ACHIEVEMENTS

254. Store manager turnover was reduced by 43% and overall labour turnover dropped by 16%

255. The number of customer complaints declined by 25%

256. Three in five employees said their salary was fair for their responsibilities, compared with 16% in a previous satisfaction survey and motivation levels are now at 62%

257. Absence has fallen by 27%Real-life examples (9 of 11)

258. Page 43ORGANISATION E-INTRODUCED A CLEAR PAY AND GRADING STRUCTURE AS MORE THAN 6000 WORKERS HAD NO STRUCTURE IN PLACE, 15000 employees, builders merchant

259. Benchmarked salary across the industry and consulted line managers to define roles and competencies

260. Designed a pay and grading structure to demonstrate pay and career progression

261. Trained line managers in an employee assessment process

262. Communicated the new structure in face-to-face briefings and online Q&A chat sessionsReal-life examples (10 of 11)

263. Page 44ORGANISATION E-ACHIEVEMENTS

264. 6000 employees have a pay and grading structure with defined job roles

265. There is now a reward system in place for increasing responsibility and gaining new skills and knowledge and a career workbook shows employees what they need to achieve to improve pay

266. The results of the latest survey indicated that overall satisfaction with pay had increased by 11%. A telephone survey following implementation found more than 80% agreed that the structure is easy to understand

267. Staff turnover is showing signs of reducingReal-life examples (11 of 11)

268. Page 45Exercise

269. Page 46Exercise

270. Page 47Case studies

271. Page 48Case studies

272. Page 49Conclusion & Questions

273. Page 50ConclusionSummaryQuestions