Employers struggle to engage employees in reward – Thomsons Online

Major multinationals still struggle to engage employees with their reward packages, and to communicate the value of these, according to a survey of 300 HR professionals by benefits provider Thomsons Online Benefits. Almost 60% of those questioned said that a lack of understanding amongst employees of the true value of total reward was a significant challenge. However, there is room for improvement as only 9% of employers offer total reward statements in all operations and just over half do not provide statements in any part of the business.

• Employee engagement remains a big concern; 34% of the HR professionals questioned said it is a primary goal of their organisation’s benefits strategy. More than a third feel the current approach needs to become more effective in order to engage employees better.
• Chief executives increasingly expect HR professionals to take a more strategic role and act as a true business partner, but this brings a growing demand for the function to up its game on global reporting and the use of workforce analytics. Almost half of the respondents in the survey are struggling with these new global reporting requirements, up from 39% who reported struggling in the previous year’s survey.
• Managing data security and privacy have become even more critical for HR people, the survey suggests. The complexity and quantity of HR data is growing and the threat of a breach, with the associated risk of reputational damage to the employer, is rising, the survey suggests.
• One fifth of the companies in the survey still manage global benefits manually and just over a half do not have a consistent approach across all the countries in which they operate.
• The greatest priority amongst respondents on the benefits front is to align benefits practices with business goals and strategy.

Chris Bruce, founder and Managing Director of Thomsons Online Benefits, said:

‘Businesses cannot underestimate the importance of clear, accessible HR and benefits communications. We are now in the digital age; millennials, and soon Generation Z, particularly those with high technical proficiency, are becoming the dominant force in our workplaces. The demand for high quality millennials far outstrips supply, meaning the power is now in their hands. It’s imperative that businesses consider their needs alongside all other generations if they are to attract, retain and develop their talent. Employees are not going to sit around and negotiate with clumsy interfaces once a year to find out what they can receive from their employer. They want HR and benefits systems that are employee centric: intuitive, visually appealing and communicate their options in a way that suits them – be this by text, YouTube or even Blippar. Employees are used to consumer grade technology – anything less is frustrating, disengaging, and fundamentally - pushing them out of the door.’

‘Global Employee Benefits Watch 2015’, thomsons online benefits, published October 2015. To download the report, please visit: www.thomsons.com/resources/research/2015-global-employee-benefits-watch