WHAT DO POINTS MEAN?

Employers' attitudes to personnel in tough times can be a
key factor in influencing a successful outcome, as businesses that neglect
staff during difficult trading conditions run the risk of de-motivated staff. But
most personnel will feel motivated and satisfied if they believe their efforts
are being rewarded, and will be better prepared when a recovery happens.

Flexible
benefits have been around for about 20 years, and help employers to attract new
staff and let personnel know that they are valued and appreciated. Such schemes
also ensure that a company stands out from its competitors, enhancing the
employer brand and helping raise awareness of reward packages amongst staff. These
comprehensive schemes are becoming commonplace and, with greater access to
sound advice being available, are now ideal for all types of business. In
addition, technology and the availability of sophisticated administration
systems have made such programmes less complex to run.

Flexible
benefit initiatives allow personnel to vary their benefits packages to suit
their personal needs, and enable them to be provided with their own budget to
‘spend' on the benefit in which they are most interested. Take-up rates vary,
and employers, therefore, need to think very carefully before drawing up a list
of possibilities. There's little point in offering something that's not
relevant to anyone as it's imperative any form of benefit is perceivably
exciting to employees, which in turn boosts uptake and engagement.

The
wide selection of benefits available can include various types of insurance, wine
club membership, carbon off-setting initiatives, telephone packages, childcare
vouchers, pension, season tickets and retail vouchers. Holiday ‘purchase' whereby
extra days off can be bought is a further option for time-poor employees eager to
spend extra time with their family, for example. But what's really important is
to consult employees over which benefits would interest them most, or to
profile staff in terms of gender, age, marital status, interests and hobbies. It's
only by knowing more about the target audience, and what they're looking for
that it's possible to provide a popular and relevant benefit service. It's key
that employers understand the needs of their personnel to ensure that the
benefits act as a motivational tool. It's about providing a choice that will
suit employees and their lifestyles.

When
selecting which benefits to include in any scheme, companies should remember
that no two people are alike - they'll have differing lifestyles and family
commitments, so choosing the right flexible benefit can be difficult. Retail
vouchers will always be popular, mainly due to the sizeable choice they
provide, which gives recipients the opportunity to plan their purchases for a
whole year.

Employers
are increasingly aware of the value of vouchers, and they're seen as an ideal
way of retaining staff. In addition, they provide recipients with more
enjoyment than cash, which can often end up in the ‘housekeeping purse', paying
another utility bill. Both men and women of all ages can use retail vouchers to
buy fashion, homewares, electrical goods, experiences, DIY goods, cosmetics,
accessories, books, CDs and DVDs. It's this huge diversity that ensures
vouchers remain one of the top choices for flexible benefits programmes.

So,
what should employers look for when selecting a retail voucher provider? Firstly,
choose a retailer with a good geographical spread of stores, and one that
provides an attractive discount structure and delivery times. In addition, it's
recommended that companies use a retailer that offers ancillary services such
as free loan of images, assistance with promotional ideas and copywriting - and
also a store group that provides a diverse range of goods as it is this choice
that will be more motivational than just offering a single line.

Providing
employees with the freedom to choose a flexible benefits package that is
relevant and which fits their lifestyle is always going to be a good motivator.
Flexible benefits schemes are becoming ever more popular, but they need to be
organised properly as part of an overall reward programme, with clear
objectives and good support systems in place.

Catherine Forrest is Business Incentives Manager at House of Fraser