Recruit and Retain Employees with a Creative Benefits Package

Kudos to the Affinity Federal Credit Union.  In the Spring 2011 issue of the Affinity Connections magazine, there was an article titled “Recruit and Retain Employees with a Creative Benefits Package.”  We often write about recruitment and benefits in our blogs and this article makes the simple yet important tie-in that you need an effective benefits strategy for attracting and retaining talent.  I couldn’t agree more!

It’s not just about the money, but about benefits that include:

• Health, disability, and life insurance
• Tax saving ways to pay for health expenses and child care
• Retirement plans
• Opportunities to continue education
• Flexible working hours, etc.

The article points to a 2010 study done by MetLife on employee benefits trends.  It states employers greatly underestimate the loyalty factor of retirement benefits, non-medical benefits (i.e., dental, disability, vision, life, etc.), and work-life balance programs.  I would also add in retirement savings plans since there are fewer pension plans and great doubts about what will be there for social security, particularly for the younger generations.

The major benefits, which are also the most expensive, are retirement plans, health insurance, and paid leave.  But, employers need to be creative and think out of the box at more cost-effective options.

The study states that 61% of employers and 56% of employees say that work-life balance programs are effective at improving productivity at work.  Examples of such programs include flex working hours and access to financial planning resources, such as Aon Hewitt’s integrated advisory offering to its DC plan participants through its subsidiary Aon Hewitt Financial Advisors.  Other ideas include:

• Flexible working hours
• Flexible spending accounts
• Employee assistance programs (EAP)
• Matching donations
• Educational opportunities including on or offsite employee training & seminars, tuition reimbursement, and paid time off to attend classes.

As the economy recovers, turnover will increase.  As the talent marketplace becomes more competitive again, it is important to see that offered benefits are utilized.  A benefits outsourcer or HRO provider can help with data mining to analyze benefit utilization patterns across key positions and geographies.  Also, total rewards statements help employees see the full impact of their benefits.  Modern benefits communication and decision support tools help participants know about and make optimum choices.

Outsourcing vendors, not just benefits providers, but also RPO providers who are helping their clients with talent management including attraction and retention strategies, should be engaging with their clients to ensure that they have a better benefits package than their competitors!  How do you stack up?

Gary Bragar, Lead HRO Analyst, NelsonHall

Employee Engagement: Outsourcing Providers Get It

I finally listened to my first two Bill Kutik radio shows and I’m glad I did (replays are available online).  Two weeks ago, Bill interviewed Mary Sue Rogers, General Manager of Global HR, Learning and Recruiting for IBM, who shared her perspectives on HRO.

More recently, Bill interviewed Rudy Karsan, CEO of Kenexa, for his views on balancing work and life and the nature of how jobs are changing with insights from his recently co-authored book titled “We: How to Increase Performance and Profits through Full Engagement.”  Research findings cited from global employee surveys and company case studies revealed three essential elements that keep employees engaged and productive: pay, purpose and passion.  During the interview with Bill, Rudy noted a January 2010 study which indicated that 45% of employees were disengaged.  That figure is now a staggering 84% (Ouch!).  Just think of the productivity that would occur if companies could make that 84% engaged.

To measure employee engagement, Rudy states that companies must first measure employee engagement though employee surveys.  Once those results are compiled and analyzed, conversations on how to improve need to occur with employees.  Having managed employee programs including employee satisfaction for a global telecom for a few years in my prior life, I can attest to all the amazing things that happen when employees become engaged!

Another important element in employee engagement is to analyze employee actions and anticipate trends before they become major problems.  In her discussion with Bill, Mary Sue emphasized the wealth of workforce information that is already inherent in HR data warehouses and systems.  An experienced HRO vendor can help connect the systems, provide the HR analytic tools, and even assist in building an engaged employee base, which is critical for success in an ever-changing global business environment.

An example of another HRO provider walking the talk is HCL.  Vice Chairman and CEO Vineet Nayar penned his management philosophy in his 2010 book titled “Employees First, Customers Second,” which says it all.

So, why aren’t more companies actively trying to ascertain employee satisfaction?  I could write my own mini novel on all of the excuses organizations give, but rather I’ll simply say just do it.  If you have the resources and the commitment, employee engagement can be managed internally.  But, if you don’t have the bandwidth, talent management providers such as Kenexa and OchreHouse have the capability to help.  In either case, companies must be committed to the process, from senior leaders down to first line supervisors.  If you don’t have the commitment to doing anything with the results, then my advice is don’t bother measuring to begin with as you risk disengaging employees more.  As an organizational leader, which side of the 84% do you want to be on?

Gary Bragar, Lead HRO Analyst, NelsonHall