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HR Excellence Awards 2012 – Most Effective Benefits Strategy: University of Lincoln

With a 2,000-strong workforce split between academic and support staff and ranging from minimum wage workers to highly paid academics, the challenge for the University of Lincoln was to develop a reward strategy that acknowledged this diversity and provided something for everyone. It also wanted to combat a difficult year in the education sector, where the focus has been on pay freezes and changes to pension schemes.

A central plank to the university's strategy in 2011 was the introduction of reward statements, to emphasise the total package employees were receiving. The statements were introduced in two forms: a senior management team statement that communicated their personal reward package, but also offered the vice chancellor the opportunity to get across key leadership messages; and a statement for all staff, pulling together the total reward package, but which was also used to attract future employees during recruitment.

A Wellbeing interactive portal site was also launched, together with an employee assistance programme (EAP). This acknowledged an increase in absence due to stress and the economic climate. The portal guides employees directly to support and information on their individual health issue. A Healthy Campus Week encouraged staff to participate in healthy activities, fostering community engagement and team-building.

These are some of the ways the university has moved away from its previously formal approach to benefits, which it describes as "the typical public sector reactive approach". Instead, it has championed exceptional performance and behaviour.

The results? The cost of sickness absence has fallen from £821,000 to £745,000 from 2010 to 2011 and 98% of staff say the university is a good employer. Occupational health has a 22% reduction in case numbers and more than 620 staff participated in the Healthy Campus Week. The university has now built significant relationships with local businesses and there has been an increase in the number of applications for vacancies.

Judges liked the fact the University of Lincoln had achieved much with limited resources and targeted its strategy and activity at its employees and business, rather than buying an off-the-shelf programme. They thought the strategy was "authentic" and that the reward team had put a lot of thinking and work into the strategy.

Highly Commended

YHA

The Youth Hostel Association (YHA) implemented a new rewards strategy in April 2011, to recognise the role of its employees in delivering the charity's vision of reaching out and enhancing the lives of young people.

The scheme comprised a mix of tax-efficient benefits, discounted benefits and external and internal benefits, including a health cash plan, childcare vouchers, a DC pension, up to 10 free hostel stays for staff and their families and retail discounts. The values of sustainability, passion, innovation, responsibility, inclusivity and trust were integrated into the strategy.

Judges liked this link to values and the clear impact shown by YHA. They said it was a good approach for a small organisation with limited resources, yet with potential for future development.

Finalists

• Birmingham City Council

• HCL Insurance BPO Services

• Tesco

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