HOW IT WORKS
Dutch-owned TNT competes on a global scale and recognises staff perceptions about their benefits can really affect their performance. It wanted to help depot and delivery staff make their money go further, and also reflect its corporate carbon footprint initiative, Planet Me degs, with a green offer. So last autumn employee benefits specialist Personal Group was appointed to improve the communication of existing benefits and launch a suite of voluntary benefits. These included a hospital insurance plan, dental plan, and shopping and holidays discount vouchers. Discounts for green products and services, such as Ethical Superstore, Tree2mydoor.com and Ecotricity, have also been included.
WHO BENEFITS
All 11,000 employees across 130 UK locations were alerted to the new benefits package with posters, newsletters and site presentations, between July and October last year. They had the opportunity to sign up to the new and existing benefits, and one-to-one sessions with representatives from Personal Group were arranged on site for those doing so. Referring to a new benefits booklet, staff can use their unique employee code to ring and order discount vouchers for retailers including House of Fraser, Sainsbury's, Comet, Asda and Marks and Spencer, typically getting £100 to spend at a cost of £90. A 25% discount on RAC membership is available and there is a 15% discount for Fitness First gyms.
WHAT IT DELIVERS
Thanks to union endorsement and much investment in marketing and communication, 70% of workers attended the presentations. A follow-up survey revealed 97.9% of those employees thought the overall package had been improved by the introduction of the voluntary benefits offering. An impressive 96.4% said they were more familiar with the core benefits than before. TNT's annual staff survey at the end of 2008 showed the satisfaction level for pay and benefits was up by 13% on the previous year. Take-up of benefits has improved: while 24% of employees have enrolled in the hospital insurance scheme, a 29% increase in take-up for childcare vouchers was achieved after staff were told male employees were also eligible.
THE HR VIEW - David Taylor, TNT's reward manager, feels perceptions about benefits have radically improved, and says TNT can now use this enhanced employer profile in recruiting, retaining and engaging its people. "We have to constantly ask whether our offer is as good as, or better than the competition," he says. "The main objective was to offer something for everyone, focusing on helping people stretch their budget, and introducing a green element in line with the Planet Me degs philosophy." Also, with a limited benefits budget, it was important to bring in benefits that have a high perceived value. There was little disruption to the working day during launch. "Presentations take only 15 minutes out of the employee's working day and can be fitted in around delivery shifts," says Taylor. Time spent communicating with union Unite had also proved invaluable and it was a great way to reassure staff of the direct benefits available to them. Taylor says the scheme will evolve as staff feedback comes through. "The plan is well embedded but we will continually refresh it."
THE EMPLOYEE VIEW
Simon Walker is operations manager at TNT's Nuneaton depot. Walker has taken out a hospital plan, paying £20.28 a month for comprehensive cover should long-term sickness prevent him from working. "With a mortgage to pay I thought it sounded like a good idea to have this cover in case the unforeseen happened," says Walker, who has worked for TNT for six years. He is also about to book a holiday with his wife and will use the discount voucher scheme to get 15% off the price of a hotel. "The booklet is very clear and the whole scheme is easy to use. There's a feeling in the depot that the company is helping us with our bills. Colleagues used the vouchers to do their Christmas shopping last year, and when the recession is over there will probably be more interest in the eco services. The green elements show we're working for a responsible company." Walker says TNT expects staff to meet high KPIs, so it is right they are rewarded for the extra efforts being made. "I'm well aware that many other distribution companies don't offer anything like this," he adds.
