A recent article (KPMG is not responsible for the content of external Internet sites) about workplace benefits packages caught my eye. It quoted the results of a survey which said that, among mid-sized employers, more than half don’t know whether their benefits plans are effectively supporting their business plans.
While these findings may reinforce what HR and Finance leaders already suspect, I strongly believe that tackling such issues head-on can prove to be a hugely valuable exercise – a fit-for-purpose benefits programme needs to be able to appeal to a diverse workforce, as well as being closely aligned to what motivates higher-performing employees.
Organisations which I’ve helped to improve benefits and rewards policies are often surprised at the level of clarity which can be achieved by interrogating internal performance-related data – from employee performance appraisal and engagement data, to profitability, customer satisfaction and sales data.
This evidence-based approach really shines a light on the inner workings of benefits and rewards programmes and allows this significant area of organisational spend to work harder and become of greater value both to the workforce and the organisation.
For example, identifying higher performing staff within an organisation and establishing (rather than assuming) which benefits appeal to them, means that spending can be more effectively directed towards these higher performers. It may be that insights gained from data analysis show that higher performers value benefits such as cycle to work schemes or gym membership.
It’s all about optimising spend – and while it may sound overly simplistic to suggest that currently too much intuition and not enough analysis is driving decision making – I think this is largely the case. Taking this a stage further, even if analysis of data is used, organisations are, in my view, often missing a trick because the results of reward and benefits strategies aren’t being monitored and tested over time.
What do you get out of embedding such an evidence-base approach? In my experience, better value for money, improved engagement, and the recruitment and retention of higher performers are all achievable outcomes.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.