HR Excellence Awards 2009: Most Effective Benefits Strategy - IAG UK
HR magazine editorial, June 26, 2009
After Insurance Australia Group (IAG) acquired Hastings Direct and Equality Insurance Group, in 2006 and 2007 respectively, IAG UK harmonised the employee benefits of its umbrella brands to create a single structure of reward for staff.
During this process, the company focused on innovation and engagement. It implemented a harmonised pension scheme, total reward statements, voluntary benefits and flexible benefits in three stages.
IAG UK found that 85% of its employees earned less than £30,000, so it decided to implement a voluntary benefits scheme that would help their salaries go further.
The resulting voluntary benefits portal now receives regular visits from 47% of staff. Meanwhile, every worker has been migrated to the relaunched pension scheme. IAG feels that staff now have a greater appreciation of their benefits, giving it a competitive edge.
One judge said: "The method IAG used makes sense. It is what I would do in a similar situation. The three-phased approach was sensible so as not to overload employees."
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