Value-based benefits – and why flexible benefits Matter

As part of our HR leaders report we surveyed 105 HR professionals, and we found some interesting correlations in their answers.

Take this one, for instance:

• 95% of HR professionals say they have differentiated their benefits offering to accommodate different talent segment needs
• But only 65% report that their benefits package is relevant to their own lifestyle and values.

Do you see the mismatch here? Or is it just us?

If only 66% of HR professionals think their benefits package is relevant to their own lifestyle and values, how much lower will that percentage be when you factor in the people who aren’t in the room where the benefits choices happen?

“Flexible benefits” are everywhere now, but as our contrasting stats show, flexibility is not enough. Employers are getting better at differentiating their benefit offering based on talent needs now, but just because something is flexible doesn’t mean it will fit, or resonate, or get uptake. An all you can eat buffet might give you choice, but that doesn’t always mean you actually want to eat what’s withering under the heat lamps.

The limits of flexibility

Supplementary flexible benefits do go beyond core statutory benefits, such as paid holiday and statutory sick pay, but they often don’t go far enough – because they don’t necessarily speak to the values of employees.

Many companies are missing the mark here, as our Generation Gap report explains:

• 42% of employees don’t feel their current employer shares their values
• 16% of 18–24-year-olds left their last employer because they didn’t share their values

Of course, this is a bigger problem than employee benefits alone, but they do still play a key role. Once you get past statutory core benefits, your offering speaks less about what your company must do and more about what your organisation cares about.

All too often though, benefits packages will fall within a limited range of categories. For instance, there will be employee discounts for shopping, entertainment and travel, and perhaps a range of fairly generic resources focused on wellbeing.

All this is better than nothing, but it’s certainly not very strategic. If your benefits don’t resonate with your employees values, concerns and interests, they won’t use them, and they may even resent them if their real priorities go unaddressed.

Showcasing what your company cares about

Part of the problem is that too many businesses simply copy each other. But we suggest you ask yourself how rewards can factor into your specific employer value proposition. Do they advance your company’s overall strategy and align with its goals? If your business has a mission or purpose, do your benefits reinforce that message?

By being selective about the benefits you offer, you can signal your company’s values and establish a sense of solidarity with employees.

Every benefit you choose says something about your brand. For example, by offering rewards that ease the cost of living crisis, provide financial education, and address mental health and well-being concerns, you demonstrate an understanding of the challenges your workforce faces and position yourself as an ally at this difficult time.

In doing this, you are offering more than flexibility, you are offering value-based benefits.

Here’s what the difference looks like:

A core benefit: statutory maternity leave

A flexible benefit: the ability to buy or sell extra maternity leave

A value-based benefit: Offering 10 months gender-neutral parental leave

Becoming value-based doesn’t mean you take flexibility out of the equation, for instance, you might allow those who can to take that leave flexibly over a period of 18 months.

Nevertheless, now you’re offering more than flexibility. You’re addressing the limits of government shared parental leave policy, you’re recognising the importance of sharing care more equally, and you’re breaking ties with a long-expired, gender-role-based system. Crucially, you’ll become an employer of choice for anyone who is considering becoming a parent.

A recipe for potent value-based benefits

Start by leveraging your business’ specific DNA. A financial services firm might provide free guidance on investments and money management, or a fashion business could offer employee discounts for its clothing range. Benefits are frequently a two-way street. In the latter example, the company will benefit from the extra exposure its clothing receives every time an employee has a night on the town.

Second, it’s not just about aligning with your brand, it’s also a chance to show your employees you understand their challenges. Benefits targeted at known challenges, like breakdown cover for salespeople constantly on the road, or subsidised season tickets for out-of-town employees, do so much to enhance the employee experience, offering them more value from their work.

Third, at Amba, we believe benefits can be and do much more. They can make a statement about what’s important in the world – and align your organisation with the social and environmental concerns of an emerging generation of talent. Benefits can even give employees the opportunity to have a positive impact on the planet.

The reward of getting value-based benefits right

Value-based benefits are crucial in creating a sense of belonging, which in turn makes all the difference when it comes to attracting and retaining talent.

If you’re in conversation with your people, if you know what resonates with each one – from the millennials and the Gen Zers to those from diverse backgrounds and those working in far flung remote locations – you’ll be able to offer benefits that reflect what they value. And in return, they’ll value you more as an employer.

In case you didn’t know, our rewards platform empowers businesses to create their own customisable range of ethical value-based benefits, check out Lumina if you haven’t already.

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