Shaking up benefits to unlock boardroom buy-in

Shaking up benefits to unlock boardroom buy-in

As the Treasury forecasts it could take until the end of 2022 for Britain’s economy to return to its pre-COVID peak, the business world continues to g

As the Treasury forecasts it could take until the end of 2022 for Britain’s economy to return to its pre-COVID peak, the business world continues to grapple with the pandemic’s fallout. Budgets are being frozen or dramatically reduced across departments, with the onus now on teams to demonstrate their business value. We caught up with Chris Bruce, Co-Founder, Darwin to gather ideas on how to get that all important buy in.

Letting go of legacy processes

With remote and hybrid working patterns gathering pace, we’re likely to see fewer employees than ever in the office full-time. This has implications on workplace processes, including benefits enrolment and administration, as lengthy, paper-based systems are simply no longer fit for purpose.

And it’s not just office workers ringing the changes. Benefits access has been a continued sticking point for employees across industries and sectors. This has been even more difficult for employees on the shop floor or in the field, who do not have constant access to a work device or HR department.

For several years, online benefits platforms have been the only tenable way to provide employees continuous access to their benefits. Moving into the new world of work, such systems will become even more crucial.

HRs also stand to benefit hugely from tech adoption. Over 55% of HR teams spend 11 hours or more every month manually transferring data to and from providers and HR systems, with many still relying on Excel as their main data management system. Moving to a dedicated, centralised benefits system would radically reduce the time spent on such tasks, enabling teams to focus on strategic work that adds more value to the business and boosts the benefits experience.

Getting to grips with analytics

Data analytics is, without a doubt, huge for HR teams. Those who have already adopted the technology as part of their benefits strategy are at a significant advantage, as they’re able to monitor benefits take-up and adapt their offerings in real-time.

It also equips teams with insight into benefits spend, enabling them to alter their strategy to address peaks and troughs in this. They may see that health insurance claims for musculoskeletal issues are on the rise in the UK, for example. To combat this, they may want to offer access to an occupational therapist, or if this is already a facet of an existing employee assistance programme, improve communications around this.

All this enables HR teams to track the effectiveness of their benefits strategies using agreed metrics, feed this back to their boards, and better make the case for further investment.

Creating a better employee experience around benefits

Ultimately, digitalising benefits systems and harnessing data analytics will lead to a better benefits experience for employees, with a higher degree of personalisation.

HRs can gain a rich picture of benefits engagement, and draw on this to develop strategies to support employees when, where and how they want. Teams can also apply a data-led approach to communications to ensure individuals only receive information on the benefits relevant to them, in a format they’re likely to engage with, and at a time that suits them.

While benefits data can help teams create more targeted schemes, we’re also seeing employers transition to an expense pot model, which offers the ultimate in personalisation. Within this, employees spend an allowance against specific areas. For example, they may use a wellbeing allowance to purchase running trainers, or something like art classes to aid their personal development and mental wellbeing. This enables organisations to channel benefits spend into strategic areas, such as wellbeing, while ensuring benefits are relevant to all employees.

Overall, a better benefits experience will drive benefits engagement, meaning employees have a better idea of the full breadth of company support available to them, boosting their loyalty.

What next?

HR teams’ influence is on the rise: they now have the ear of the board. To take full advantage, they must act quickly and break away from the weight of legacy processes and get to grips with the latest and greatest tech on the market.

This will enable HRs to create a better employee experience and, in tandem, communicate the impact of this back to the board in terms of ROI on benefits spend. This will enable them to make a compelling case for continued HR technology investment.

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