Employee Benefits meet employees values
Employee demographics are changing, and with them, the priorities and values of the workforce have shifted too. While your employer value proposition (EVP) might still serve an older generation, does it address the needs and concerns of your Gen Y and Z employees?
Here’s an example of a somewhat outdated employee benefits package: we’ll clean and polish your shoes, at the rate of £25 each month. What? That benefit isn’t beneficial to you?
Well, it might be an exaggeration, but many employee benefits packages do feel so outdated that they might as well come from the Dark Ages.
If we’re being blunt, many of the traditional approaches to employee benefits are outdated, and many employees find themselves with benefits that don’t align with their values or lifestyles.
The values of today’s employees
By 2025, Gen Z and Millennials will make up the majority of the global workforce. These generations, born between 1981 and 2012, have a new perspective on careers and how success is defined. The talent of today is in search of businesses with values that match their own. They prize ethical impact and flexibility in a workplace above traditional rewards.
According to Glassdoor, Gen Z employees are most satisfied in roles where they can have a positive social impact.
Millennials, meanwhile, are more likely than older generations to value culture above salary – they also place greater value on a diverse and inclusive workplace.
One size doesn’t fit all with benefits
If an employee sees no value in a benefit, it has no impact on recruitment, retention or building a sense of belonging. You could have all the benefits under the sun but if they don’t address your people’s needs, then, well, they aren’t really benefits at all.
What good is paternity leave if you don’t even have a partner? Subsidised RAC cover is pointless if you live in central London and can’t afford a car. If you’re struggling to save for a house, do you really want to save for a pension? We could go on and on.
When it comes to incorporating benefits in an EVP that’s relevant to today’s talent, one size simply doesn’t fit all. Above all else, you need to be flexible, offering benefit options that you can evolve over time to reflect changes in employee values.
In other words, don’t let your benefits get dusty. While offering extended paternity leave may once have been revolutionary, employees in their 20s might place far greater value on a few days of puppy leave when they get a new dog. When it comes to benefits, it pays to think outside the box.
Financial freedom
Some leaders regret the follies of youth. Those carefree days when they prioritised fashion and fun over financial prudence. As we climb the career ladder, we age and, hopefully, wisdom climbs with us. When we reach the top, it can be tempting to present our people with a range of benefits we wish we’d accessed at the start of our careers.
But while our intention may be good, what we are offering is solutions to old problems, or problems we think our employees should be concerned about. We aren’t addressing their actual, current needs in ways that resonate with them.
For example, A Millennial employee may give very little thought to their pension as retirement seems so far off. In our wisdom, we might think they should start building their pot up now. And maybe we are right, but that isn’t the point.
We need to ask our employees about their needs. Benefits shouldn’t be dictated. It isn’t at the apex of the pyramid that decisions about benefits should be made, but at the base.
If we take time to talk with employees and learn about the challenges they face, then benefits can be structured to address needs and aspirations. For instance, if our Millennial never-gonna-get-old pension dodger is saving for a house, contributions to an ISA are a more resonant benefit that will make them feel cared for by the company.
A salary isn’t enough anymore
While we are talking about finances, let’s consider the cost of living crisis. With a flexible benefits approach, you can keep your EVP fresh by addressing contemporary challenges.
In a previous blog, we discussed ways a caring firm can use salary sacrifice to help their employees with the squeeze. Some employers are going further and giving staff bonus payments of £100 or more. Of course, we support that, even though the tax man inevitably nabs a chunk of it.
But if you’re looking for ways to help your team weather the storm, consider hiring the services of a financial advisor to deliver seminars or one-to-one sessions to your staff.
£100 will certainly help an employee get through a tight month, but the right advice can give your people reassurance and a sense of control about the months and years to come.
Better your people
As your company grows, so does the workforce, and you constantly need new talent. But why not support your staff to evolve alongside your business by investing in training and education?
Apprenticeships, CPD opportunities, sponsorship of evening classes or an MBA are all ways to make your people feel that your company is interested in their development and cares about their future. It’s a recipe for a sense of belonging as well as a win-win situation, since employees will get the chance to apply their learning in your organisation.
A solution to fit all
Introducing Lumina Perks, a simple solution to aligning your benefits to your employees’ values. An online employee perks shopping platform with a key focus on the people and planet, which your workforce will value. Along with a strong ESG ethos, it also aligns with your employees no matter their stage in life, offering a range of discounts suitable for a diverse, changing workforce.
