It’s a fact of business that most employees will join and then leave to fulfil their career and salary progression goals. There are usually a few loyal individuals who will stay with a company long term and whilst having a job for life was fairly common with previous generations, today being a “lifer” is fairly rare.

So with employees chasing their aspirations and changing companies regularly to fulfil their career and salary progression goals, get the best benefits and add to the retirement pot, what exactly makes employees want to stay with a particular company?

They like the job they do

A 2012 Workforce Retention review conducted by the American Psychological Association, revealed that 67% of those involved in the study said that the main reason they stayed working in their jobs because “I enjoy the work I do.”

Are you surprised? Salary, which most people would expect to be the main reason, was 3rd with 59% of respondents stating that it was the main reason they stayed working in their jobs.

The job gives them a good work-life balance

David W. Ballard, PsyD, MBA, head of APA’s Psychologically Healthy Workplace Program, says,

“Americans spend a majority of their waking hours at work and, as such, they want to have harmony between their job demands and the other parts of their lives.”

Coming in a close 2nd to enjoying the work they do, was “it fits in well with the rest of their lives”, with practically two-thirds citing this as the reason they stay with their company. In other words, it gives them a good work-life balance.

It just fits!

Each and every business has a specific culture that is unique to that business, and that culture can draw employees to it. These employees normally understand and share the vision of the company and understand how their specific role contributes to the business. This knowledge and understanding can be as a result of the way the company runs it business, specifically:

• Communications with staff
• Leadership style
• Employee engagement
• Working environment
• Working relationships with managers and peers

Rewards and recognition

According research by Dr. Kenneth Kovach at George Mason University, the second biggest motivator for employees is recognition (number one was interesting work). Recognising the contribution of employees to the overall business goals and culture can be invaluable and it’s proven to improve employee loyalty and reducing staff turnover.

Structured recognition programmes that include personal thank yous, awards and merchandise incentives, rather than just cash, motivate employees in the long term and help create a sense of belonging, a feeling of appreciation and a feeling of actively contributing to the success of the of the team and the business as whole.

Well run recognition schemes create an emotional bond between the business and its employees which means employees develop a strong connection to the work they do and the company they are employed by.

There are a lot of reasons employees choose to stay or choose to go. However it seems that employees who are happy, contributing to the business, are recognised and feel appreciated are more likely to stay with a company for a significant length of time. And if a organisations can develop employees such as these who are loyal and want to stay with the business then it’s giving itself a better chance of success.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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The research was conducted with 200 HR Directors, and over three-quarters of the respondents have considered the impact this would have on their company.

Lee Hollingworth, head of DC consulting at Hymans Robertson, said:

Over the next decade, the number of people retiring on a defined contribution (DC) pension is set to escalate and, as things stand, many people will find they have not saved enough and may need to delay their retirement.

This is a particular concern for many employees and employers alike. Stress caused by external factors such as worrying over finances and the future can increase the pressures felt at work which can lead to demotivation, increased absence due to ill health and reduced productivity. So how can you maintain morale and give older workers the means to save on everyday spending?

One of the best ways to do this is with flexible benefits schemes and cashback cards. Not only do these schemes motivate employees, encourage staff loyalty and help increase productivity but they can also help employees budget or spend less which means the money saved can go into savings or pension funds.

Cashback Cards

Cashback cards are a new way of enabling your staff to gain access to savings on their typical monthly outgoings with major high street stores. Cashback cards help employees budget and get more from their spending. Which means that the money they have not spent can be used to top up savings or pension funds.

Cashback cards, like the MySpree card, are a cash alternative that work like credit or debit cards, but is neither. It is a prepaid card, which means employee cannot spend any more than has been loaded onto the card and get into debt.

They work in a simple way. Employees top up their card with funds whenever they see fit, which can then be used to pay for purchases in store or online wherever they see the MasterCard® Acceptance Mark. When they make a purchase the cost of the purchase is deducted from the balance on the card.

But the real advantage of these prepaid cards is the cashback aspect. When staff use the card at selected stores they can earn cashback from those stores. The cashback is paid directly back onto the card the next occasion your employee tops up. Your staff can then use the cashback to spend in any way they like.

The MySpree Card enables your employees to get cashback from high street retailers such as Argos, Sainsbury’s, M&S, Boots, Debenhams, B&Q, Pizza Express, ToysRus, River Island, Waterstones, Marriott, Zizzis plus many more.

Flexible Benefits

A flexible employee benefit scheme allows employees to choose the benefits that suit them the best. Such benefit schemes usually include a wide range of options for staff to choose from, such as discount vouchers, mobile phones, etc. All of which can mean savings in your employee’s pocket.

An additional benefit of flexible schemes is that they can also lower the amount of tax employees pay, as the deductions are taken from their gross salary before tax is applied, which means your employee is only taxed on the amount in their monthly salary after they benefits have been taken.

Like the cashback cards, employees can use their flexible employee benefit scheme to save money on spending on everyday items which means they can use any remaining salary to add additional voluntary contributions to their pension scheme.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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The worldwide report revealed a number of HR issues specific to various countries. Within the UK decreasing productivity had become a significant issue for one in three (31 per cent) trained HR professionals, although the global average within this category was just 21 per cent.

As reported by Right Management, the problems with falling productivity levels may be as a result of the continued feeling of economic uncertainty that has seen staff pushed towards the edge, as businesses try to do ‘more with less’ over the last few tough years.

The study surveyed 2,600 senior HR professionals from 14 countries and discovered that the UK is facing situations which are different to those appearing in other regions globally. Within the economic powerhouse of China, employee engagement was viewed as the most significant challenge by just 11 % of participants and only participants in Belgium were gloomier about productivity than UK HR professionals.

One proven way of improving employee engagement is through reward and recognition schemes.

The tangible benefits of recognition

Employee recognition programmes are one of the most effective ways to make a positive impact on employee engagement, and they can also have a substantial impact on businesses results. The SHRM /Globoforce Employee Recognition Winter 2012 Report demonstrated:

• Productivity – 63% of those surveyed observed an increase in employee productivity as a result of implementing an employee recognition program.
• Employee retention – 51% of those surveyed observed an increase in employee retention as a result of their employee recognition scheme.
• Profit – 58% of respondents saw an increase in their ROI as a result of a recognition program.
• Customer retention – 52% those surveyed observed an increase in customer retention as a result of their employee recognition scheme.

Businesses achieve these results with such schemes because the proper implementation and running of a recognition programme signifies that the business recognises that its employees are contributing to the success of the business and that the employee-employer relationship is about more than ‘come to work and get paid’. It engages employees in the success of the business, something that is particularly important in challenging economic conditions where tough decisions regarding redundancies, pay rises, bonuses and extra workloads are being made.

Employee recognition schemes are also proven to achieve less measurable results. They can raise employee’s self-esteem levels, reduce the number of days lost to illness and contribute to lower stress levels in employees. And although some of these may not be measurable they all have a significant impact on increasing productivity.

Mark Hodgson, talent management practice leader at Right Management, said:

“It seems many organisations in the UK are still stuck in recession mode, but the fact is the economy is in recovery. Businesses need to start talking about growth and start investing in and inspiring their workforce; putting talent initiatives on hold simply isn’t an option.

 

Pressing pause will only lead to more stagnation and make it even more difficult for employees to find meaning in their work and make a real contribution to the business.”

He stated that right now is the perfect point in time for businesses to evaluate and identify solutions to boost their productivity and create employee confidence both in terms of their confidence in the company and in their career paths.

A recognition and reward scheme could be a simple and effective way of increasing employee engagement for many UK companies, especially when the main goal of the company is to engage, motivate and improve productivity.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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Research conducted by the CIPD has revealed that 53% of employers expect to make increases to their pay budgets by the end of 2013.

The Reward Management Survey 2013 showed that there are two main factors driving demand for increased budgets:

• Expected pay rises for existing staff and
• Increasing staff numbers.

Could this suggest that there is light at the end of the tunnel for employees struggling to cope with the increased cost of living, yet relative wage stagnation that has hit the UK over the past few years?

Employers who completed the survey suggested that they want a better link between reward and performance in exchange for higher salaries. Most believe that linking reward with performance could be a big driver for performance improvement. This is particularly true within companies that are struggling to maintain staff morale and engage individuals during these tough times – showing staff that they are valued for their constant high performance is essential.

Employers need to offer more

Many employers recognise that pay alone won’t encourage the behaviors that they require and so also plan to increase their benefit budgets in 2013, with such a move reported by 34% of private sector employers and 15% of public sector organisations.

Charles Cotton, rewards adviser at the CIPD, said that the issue of employee remuneration remained high on the workplace agenda, and that an appreciation of “the perils of short-termist approaches to reward” was growing.

“It’s encouraging to see employers wanting a more flexible way of rewarding their employees in an effort to help align pay with the delivery of business strategy, but it’s crucial to ensure that measures of performance look to the long term so that they encourage sustainable business growth”.

View the CIPD coverage of this story here.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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Friends and peers could potentially see, comment and congratulate a member of staff, while employers could give a ‘shout out’ via Twitter to a person who has gone the extra mile that day. It’s all good stuff, but is it the most effective way to recognise a person? 

There is a strong argument for retaining the personal touch in staff recognition schemes. A manager that takes the time to leave their desk or work station to give a spontaneous personal word of thanks may find that it has a much bigger impact on the employee than a 140 character tweet. Similarly, a handwritten certificate, presented in person, is likely to be far more memorable than a short email. It is easy to underestimate how important it is to many employees to be praised by the boss personally, especially in front of colleagues, with a short thank you and a round of applause doing wonders for morale and engagement.

Personal moments are very important in staff recognition, but there is a use for social media in addition to reinforce the face-to-face messages of praise, and broadcast it to even more colleagues and contacts within the organisation. For these reasons, it is important that a blend of the two is maintained.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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The Benefits Research 2013 study surveyed UK-based employers about their benefits strategies, provision and practices to find out what employers offer, why they do so and what are the key drivers behind their employee benefit strategies.

This annual study has now been conducted for over a decade and as a result we can see a number of changes in benefit strategies. These include the growth of health and wellbeing benefits, such as employee assistance programmes, health cash plans, medical cover and medical/health assessments.

However, the headline from The Benefits Research 2013 study is that 74% of respondents stated that employee engagement was the main factor in shaping their organisation’s benefits package .

The missing link?

But employee engagement comes from a combination of factors, not just the benefit package offered by employers. According to research by YouForce conducted in March 2013, the same time as The Benefits Research, the top drivers of employee engagement are corporate culture and recognition, followed closely by career progression and opportunities for learning and training.

However The Benefits Research reports that just 15% of respondents are planning to motivate staff to maintain morale. So the question business leaders need to ask themselves is, with reward and recognition featuring so highly on the drivers of employee engagement do HR professionals really understand the concept of employee engagement?

Reward and recognition schemes drive employee motivation which increases employee engagement but it seems from this research that HR teams are missing this vital link.

Management buy-in is low

However it may not fair to lay the blame solely at the door to the HR department. In the YouForce report when respondents were asked about specific concerns around employee engagement, they said there were still several stumbling blocks. The main stumbling block was getting buy-in from senior management. So it seems that the need for HR professionals to build a business case demonstrating how employee engagement will improve business results remains a key challenge.

Creating flexibility, reducing costs

Other concerns in the research included a desire for flexibility and a desire for cost control. 52% of employers in the research wanted to provide flexibility in their employee benefits programme whilst 50% wanted to reduce or control costs.

The simplest way to achieve both these aims for employers is to implement card based benefits. Reloadable cards are often the most flexible kind of benefit on offer and they can deliver significant costs savings on postage and a reduced administration burden on the HR team.

Through a salary sacrifice scheme employees simply load a part of their salary onto a reloadable card (for a retailer of their choosing) and then use it to pay for the usual monthly outgoings or to treat themselves to something special.

It’s proven that flexible benefits such as reloadable cards boost morale and create a rapport with employees which in turn drives employee engagement, boosts productivity and improves business results. Plus with reduced costs it’s a win-win situation for both the employer and the employee.

But will business leaders and HR professionals realise this before it’s too late?

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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This is reflected in recent surveys that report that employees who feel financially insecure are increasing, and that women feel more financially insecure than men. According to Unum’s survey released this month, 40% of those surveyed plan on delaying their retirement because they feel financially insecure.

The tough economic conditions have led many workers to prioritise utilising the employee benefits available to them more than ever before, and a large number of employees still live salary to salary.

Companies who are looking to cement their reputation as a good employer are playing a leading role in helping their staff feel more financially secure through their employee benefits scheme. One of the best ways to do this is through staff savings schemes which include cashback cards and flexible benefits.

Cashback Cards

Cashback cards are a new way of enabling your employees to enjoy savings on their everyday shopping with leading high street stores. They help employees budget their monthly outgoings and get more from their spending. After all in tough economic times spare cash is on everyone wish list.

Cashback cards, such as the MySpree Card, are neither credit or debit cards yet employees can use them wherever they see the MasterCard® Acceptance Mark. Each month employees’ load their card with money, to a value they determine, then when the employee spends using MySpree in store or online it is debited from the card. Because the card is a pre-paid card the employee cannot overspend and get into debt.

But the key benefit of these cards is the cashback element. When employees use the card at selected retailers they earn cashback from those retailers which is credited directly back to their MySpree card the next time they top up. Employees can then use the credited cashback to spend in any way they choose.

The MySpree Card enables your employees to get cashback from high street retailers such as Argos, Sainsburys, M&S, Boots, Debenhams, B&Q, Pizza Express, ToysRus, River Island, Waterstones, Marriott, Zizzis plus many more.

Flexible Benefits

Flexible benefits allow employees to choose the benefits that suit them the best. These schemes include a wide range of options for staff to choose from, usually through salary sacrifice, which include discounted vouchers and gift cards, childcare vouchers, bicycle purchases, mobile phones and leisure discounts.

The development of technology now means that these schemes are easy to run, have reduced costs and have a reduced administration burden on HR teams as employees can manage their individual choices online or through the company’s intranet.

The schemes can also lower the amount of tax employees pay, as the deductions are taken from their gross salary before tax is applied, which means your employee is only taxed on the amount in their monthly salary after they benefits have been taken.

Other Employee Benefits

Other employee benefits that can help employees feel more secure and motivate your workforce include:

• Redundancy insurance
• Disability insurance
• Insured pensions
• Personal financial planning
• Medical insurance
• Health and wellness assessments

Most businesses know that happy employees who feel stable in their jobs are more motivated and more productive. And employee benefit schemes are a large part of maintaining a happy, motivated, productive workforce.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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The global report identified several HR concerns specific to different countries. In the UK, falling productivity was a key concern for one in three (31 per cent) of HR professionals, while the worldwide average in this category was just 21 per cent.

According to the firm, the productivity impasse could be due to a sustained period of economic uncertainty, which has seen employees pushed to the brink, by doing ‘more with less’ in the last few years.

The UK vs The Rest of the World

The research questioned 2,600 senior HR executives from 14 countries and found that the UK is facing problems that are distinct from those emerging elsewhere in the world. In the economic powerhouse of China, employee engagement was seen as the biggest challenge by 11 per cent of respondents and only those in Belgium were more pessimistic about productivity than British HR executives.

Indeed, the research also found that British business held a particularly austere view of hiring intentions and growth, when compared to most territories outside Europe. Just 31 per cent of UK HR professionals expect this year to be one of growth and recovery, with a period of improved investments in new talent development initiatives. A similar proportion believes this year will be a repeat of the last 12 months in terms of hiring and workforce growth, while a further third expect the next 12 months to be marked by general stagnation.

In contrast to the outlook in the UK, HR professionals in emerging economies are far more positive about the months ahead, with 78 per cent of executives in India, 70 per cent in China and 66 per cent in Brazil expecting investment and growth in new talent development

Mark Hodgson, talent management practice leader at Right Management, said:

It seems many organisations in the UK are still stuck in recession mode, but the fact is the economy is in recovery. Businesses need to start talking about growth and start investing in and inspiring their workforce; putting talent initiatives on hold simply isn’t an option.

 

Pressing pause will only lead to more stagnation and make it even more difficult for employees to find meaning in their work and make a real contribution to the business.”

He explained that now is the ideal time for companies to assess and identify ways to boost their productivity and make staff feel confident about their career trajectories.

This article originally appeared on www.snowdropskcs.co.uk

So why is the ‘millennial generation’ important? According to a new study by PwC this ‘millennial generation’ are opting for greater workplace flexibility over financial rewards.

PwC’s NextGen survey of over 44,000 workers conducted in conjunction with the London Business School and University of Southern California showed that this generation of workers would also choose work-life balance and the opportunity for overseas assignments over greater financial benefits. This is in contrast to the non-millennial generation, who placed greater importance on pay and development opportunities.

This information will have a significant impact on those who currently plan or oversee employee benefit schemes as it means that many programmes may need to change and adapt to meet the demands of the this generation, in order that businesses can recruit and retain the best talent.

Flexible benefits programs are best suited not just to the ‘millennial generation’, they can benefit all your employees and, most importantly, your business. Especially in the current economic situation where it is important to have employee benefits scheme at least as good as your direct competitors!

Flexible benefits allow your employees to choose the benefits they want or need from a package of offers available to them by their employer. Traditionally these have included childcare vouchers, health insurance and retirement benefits. However, providers are now offering schemes that offer more ‘lifestyle’ benefits.

Because the ‘millennial generation’ are more interested in work-life balance than financial rewards, flexible benefits give them the opportunity to swap part of their salary for benefits such as cycle to work, annual leave purchase or discount vouchers that allow them to buy the latest gadget.

But before you rush off to change your scheme, STOP!

You need to think it through. There isn’t one perfect scheme to fit all. As an employer, you need to be aware of what your employees need and what they want. Your decisions on the benefits you offer should be well inform and of course there might be legal and tax aspects that need to be considered.

Flexible benefit schemes have other advantages apart from appealing to the ‘millennial generation’:

• They offer benefits that appeal to every member of your workforce
• They can help control the costs of benefit management, whilst contributing to a valuable employment package
• They enable employers to increase employee engagement which leads to potential cost savings in the business
• The cost savings flexible employee benefit scheme deals can be used to off-set other employment costs such as auto-enrolment

Referring to PwC’s NextGen survey, PwC head of people Gaenor Bagley said:

The ‘millennial generation’ will make up 50% of the workforce by 2020 so it is vital employers understand what motivates this generation. Many companies will have to completely re-think how they attract and reward their workers, or risking losing the best talent to companies which adapt to meet their needs.

Flexible employee benefits have to be considered as a fundamental aspect in attracting and rewarding employees for any forward looking company. These flexible schemes are ultimately about giving employees choice, they give your employees some control over their employment package as they can tailor the benefits to meet their own needs and circumstances.

Or you can risk losing your best employees to your competitors!

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+

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A key factor in employee retention, and in fact attracting the best employees to start with, is the employee benefits package that your company offers.

There are some standard perks that most employees expect these days. These include health cover, childcare vouchers and pension contributions but they don’t really contribute to motivation, employee performance or staff retention because they are ‘expected’ benefits.

The problem for employers is that each employee is an individual; they are motivated to stay with your company by different things. So how to you cater for each individual employee?

The answer lies in flexible employee benefit schemes. This is an area where technology companies often lead the way, they offer a range of interesting and generous benefits to their employees. The most well-known of these is internet giant Google. Google has an impressive list of employee benefits, including napping pods, free haircuts, swimming pools and fully equipped gyms.

But most businesses don’t have Google’s budget! So what benefits can smaller businesses offer to their employees without breaking the bank? The most popular benefits (in no particular order) are:

High Street Vouchers

High street vouchers offer your employees a wide range of choice so that your employees can opt for the voucher that is best suited to them. They receive the vouchers at a discounted rate and can put them towards their monthly expenditure or use them as part payment on a larger item such as a new TV.

Travel Discounts

Some employee benefits schemes enable employees to book individual aspects of their travel or a complete holiday package. These can schemes can often be cheaper than going to a high street travel agent as the scheme doesn’t charge a commission, meaning that employees get access to unbeatable savings.

Cinema and Leisure Discounts

Cinema and leisure discounts are one of the most popular benefit options as they allow employees to treat themselves to a night or day out. Employees can enjoy discounts at popular restaurants and national cinema chains, or treat themselves to a relaxing spa treatments or adrenaline filled driving day.

Cash Back Deals

Using pre-paid cash-back cards employees can make their monthly salary stretch further. A set amount from their salary each month is simply loaded onto the card and your employees simply shop as normal, they’ll receive instant cash-back loaded onto the card each time they top up, which they are free to spend.

Gym Memberships

These days most people want to try and live a healthier lifestyle, but to help your employee achieve this you don’t need to offer an on-site gym. Instead they can benefit from corporate rates at gyms and leisure clubs through their employers’ benefit scheme.

Annual Leave Purchase

Annual leave purchase benefits allow your employees to exchange a proportion of their salary for additional leave, giving them more free time to unwind with the family, whilst employers benefit from reduced salary contributions.

Employees Consider Your Entire Benefits Portfolio

When it comes to employee benefits, employees (new and existing) tend to look at the total package, not just the company car and pension. They are looking for benefits that will either improve their lifestyle or make their life a little easier, which is why when you are designing or reviewing your benefits scheme you need to consider the total package on offer.

Kuljit Kaur

Kuljit is responsible for business development at The Voucher Shop, a  division of p&mm ltd. Your one stop shop for corporate vouchers and gift cards for employee benefits, recognition or rewards. Connect with Kuljit on Google+