The influx of diverse demographic groups joining the workplace has triggered a revised approach to work-life balance and its related benefits
Ninety two percent of organizations allocate 20 percent of the rewards basket to non-cash components as a part of their benefits program. The Edenred-People Matters survey reveals how organizations are leveraging the work-life benefits of these non-cash components to build a holistic employer value proposition.
Work-life benefits bring the right prioritization of work and life, which is integral to both employers and employees alike in driving business growth. With the influx of diverse demographic groups in the workplace, a revised approach to work-life balance is required along with benefit offerings. These benefits are designed to bring more flexibility at the workplace so as to facilitate employees in achieving their best while at work and balance their personal lives without one having any adverse affects on the other.
The non-cash component
Organizations are providing relevant non-cash rewards, which are in line with employee needs and aspirations, the strategic direction of the business and what the business values from its employees. In more than 80 percent of the organizations surveyed, rewards and recognition is a critical component of the rewards basket, whereas 79 percent give relevance to insurance and 70 percent promote meal benefits.
Budget allocation on non-cash components
Nearly 45 percent of the respondents stated that the budgets allocated to non-cash components of the rewards basket, range between 10-20 percent of the overall employee budget. 15 percent of respondents said that their allocated budget is over 20 percent, while the remaining allocated less than 10 percent to non-cash components.
Many organizations try to offset the cost involved in outsourcing non-cash benefits by investing on internal practices and policies that are designed to meet the aspirations of the organization, but there are organizations that have opted to outsource. 62 percent of the respondents confirmed that they outsource meal benefits, while 53 percent outsource insurance to a third party in the absence of any in-house capabilities to administer such non-cash benefits.
Are your employees aware?
It is imperative to communicate these benefits to employees so that these programs are perceived to be consistent and transparent. The survey states that almost 50 percent of the respondents communicate their benefits through policies that are signed by employees at the time of joining, 23 percent use induction programs as a platform and approximately 13 percent convey the same through regular mailers or in HR meetings.
What lies ahead
While it is clear that non-cash benefits help in promoting talent retention and engagement, 54 percent of the respondents believe that the budget allocation for the non-cash benefits will remain pretty much the same in the coming financial year, whereas 41 percent of the respondents expect an increase in the budget allocation.
Responses to the questionnaire were sought from 117 senior HR professionals who belonged to diverse sectors including BPO/IT/ITeS, BFSI, telecom, construction/engineering, retail, manufacturing, pharmaceutical/healthcare and professional services.