But as the recession continues to linger, the predicted and much anticipated ‘green shoots' of recovery still seem far away. So with the ongoing economic uncertainty, how do you motivate a workforce that fears pay cuts, longer working hours, slashed bonuses and other rewards and, in a worst-case scenario, redundancy?
The most straightforward and cost-effective answer is benefits. As we need to make the most of the current talent, resource and opportunities available to us in our businesses more than ever before, we need to stop playing it safe. When it comes to investing in our people there are times when we need to take assertive and decisive action. The employers that shy away from doing this are simply ignoring the potential to easily engage and support their people in these difficult times.
Many of us regard reward and benefits strategies as a crucial factor when it comes to achieving high levels of engagement, performance and motivation. However, a study from Accor Services (2008) found while one in four employers rated rewards and benefits as a key driver in engaging workers in their business, only 20% of employees reported they actually understood the value of the benefits within their packages. A further one third had no understanding of their value whatsoever.
So the pressure is now on for us as employers to demonstrate the positive impact employee benefits can have on an individual's wellbeing and position the packages we offer them at the heart of people strategies. Alongside this we need to consider how we can maximise our return on this investment.
While it's possible to argue investment in benefits and engagement at a time when purse strings are already tight is not beneficial, you need to counterbalance these thoughts by considering the positive impact this investment can have. And remember, money doesn't necessarily have to be spent in order to maximise your return; there are cost effective and often cost-neutral solutions you can consider and implement.
For example, reviewing and improving your current employee benefits communication is a cheap and easy way to improve engagement with and take-up of a benefits scheme. Good two-way communication has the power to ensure employees understand what's on offer to them, what will have the most positive impact on them and their dependants and contribute to the future development of your benefits offering. In turn, this presents you with a huge opportunity to maximise your return on investment.
The range of employee benefits in the market is continually growing in response to social trends, employee demands and competitor behaviour. Given the regularly changing range and type of benefits on offer, reviewing your scheme and what you are putting in your benefits package is another way to ensure you and your people get the most from it. As regular research shows, not enough of us do this on a regular basis.
The wide variety of factors behind an organisation's decision to implement or update its benefits means no two organisations will expect to see the same return on their investment. Some may experience cost savings by introducing salary sacrifice benefits, whereas others may see increased recruitment and retention rates or higher levels of engagement, motivation and performance. It all depends on your objectives and the way you decide to measure your success - presuming you do. Yet whatever the return may be, if done properly, you can positively contribute to a profitable business environment.
So now really is the time to take action. Take a look at the benefits investment you currently make. Do you think its achieving positive employee engagement? Whether you're preparing the business for those elusive ‘green shoots', are intent on weathering the storm, looking to support the survivors of cuts and redundancies or facing the economic and business challenges head on, we all should grab the opportunity and take positive action to benefit from benefits.
Alastair Denton is UK managing director of Motivano
