Giving employees a voice on global reward and benefits€¦ · 1. Thomsons Online Benefits, Global...

Giving employees a voice on global reward and benefitsWhitepaper

Global Employee BenefitsWatch 2018/19 Series

2 | www.thomsons.com

Giving employees a voice on global reward and benefits | 3

Contents

Introduction

What do employees care about? Benefits rank high in all factors impacting how employees feel about their employer Employees’ life goals are diverse: look beyond gender and generation stereotypes

Employee demand for their employers’ support is not being met The demand for support changes depending on office location and generation Employees’ opinions on their benefits offering are varied, most benefits are not being used to their full capacity

Are employees being turned off their benefits? Employees want the same experience inside and outside of work

What happens when employees’ voice on their benefits is heard?

Conclusion

About Thomsons Online Benefits

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The workforce of the future will look dramatically different to today. There are a number of existing trends shaping what this workforce will look like, and employers need to bear this in mind to properly prepare and adapt for this change. Employers should look at the multitude of research available about the workplace in 2025 specifically through the lens of what this means for their global benefits strategy.

Firstly, we will soon have five generations in the workplace at once. Up until this point, there have only been three or four generations at a time. This is going to have a huge impact on workforce behavior, what motivates employee engagement, and the tools and practices employees need to interact with their work and eachother. This multi-generational environment is a new diversity challenge for HR organizations everywhere.

It will be critical for employers to think about how they will engage this diverse workforce with their benefits program.

Secondly, there are a number of existing trends that mean the workforce of the future will need more support than ever before. Employers must think about the benefits that will truly support their employees through these changing times. For example, in the UK it’s getting harder and harder for people to get on the housing ladder. By 2025 only 26% of young adults will own a property, leading to this group being dubbed 'generation rent'. An even more prevalent issue is America's medical care spend which is set to soar over the next few years. Employees will need more support than ever before. Thirdly, we are transitioning to a flexible working, gig economy. In 2025 there will be more working environments in which temporary positions are common and organizations contract with independent workers for short-term engagements.

This will mean a large rise in demand for agile working. 70% of employees said flexible working arrangements represent an important opportunity for their work lives in the next 10 years. The way benefits are delivered to employees will therefore need to be agile and flexible.

Finally, by 2025, 64% of the workforce will be gen Y and Z. They have grown up with technology. They want instant access to bitesized, engaging, interactive, fun and succinct information – all delivered through the best tech on the market.

Employers must set up the benefits tech today, to deliver what these employees will demand in the future.

With these key trends in mind, we encourage you to not only ask and listen to your employees, as we have done in this research, but also to recognize how the market is moving and start thinking about how you will adapt in line with it.

Employers who do, and respond through action, will ensure their benefits strategy is set up for the workforce of the future. This is the third year we have asked employees for their view on benefits and each year their expectations are increasing. For employers, this creates a greater need for you to listen to employees and adapt your strategy. And you must start today.

Chris Bruce Managing Director, Thomsons Online Benefits


To be successful, your global benefits strategy should be completely centred around employees’ needs.

As reward and benefits are a critical way of attracting and retaining talent, it makes sense to find out what your most valued talent actually want from their benefits, especially if they are offered with the aim of supporting their personal and professional lives.1 So why do most employers not ask for their people’s perspective on benefits?

Our research has shown that a key way to determine employee needs is by analyzing data from tech-enabled, centralized global benefits management. Market-leaders using analytics to create their global strategy are twice as likely to be offering the benefits that their people actually want, and 95% more likely to be driving business objectives through their program. However, this group of organizations are in the minority (under 20% of employers in fact).2

This lack of employee perspective in strategic decisions on global benefits needs to change. So we asked over 2,200 people working in multinational organizations around the world, quite simply, what they want from their benefits offering and how this impacts how they feel about their employer. This research aims to inspire organizations to conduct their own initiatives to find out more about their employees' needs, not to tell you how to deliver a global benefits strategy.

We have designed this whitepaper to get HR and reward professionals to think from the perspective of their number one customer, their people.

With this in mind, we will explore three key areas from the employee perspective:

• Where do benefits rank in relation to other influences on their feelings for their employer, and which benefits do they really value?

• How do they want to access and manage their benefits?

• And finally, how does giving employees what they want from their benefits offering impact their feelings towards their employer?

Ultimately, this whitepaper gives employees a voice on benefits. A voice that is sometimes too easy to forget, but as we will prove, is the linchpin on which the effectiveness of your program rests.

Introduction

1. Thomsons Online Benefits, Global Employee Benefits Watch Report 2017/18. Mercer, Total Rewards Practices Survey, 20172. Thomsons Online Benefits, Global Employee Benefits Watch Report 2017/18

We asked over 2,200 people working in

multinational organizations around the world, quite simply,

what they want from their benefits offering and how this impacts how they feel about

their employer.


What do employees care about?In this section we look at what employees really think about benefits. The results from 2,200 employee voices from multinational organizations show benefits can make a real difference in recruitment and engagement; that employers need to look beyond persona and generation sterotypes and create a strategy that really cares for individuals.

Benefits rank highly in all factors impacting how employees feel about their employer There has been a multitude of research over the years into the factors that influence employees’ loyalty to their employer, and how engaged they are with their organization as a whole.

Mercer’s recent Global Talent Trends Report shows that employees who thrive in the workplace, or in other words who are highly engaged, are:

• Three times more likely to work for an organization with a strong sense of purpose

• 10 times more likely to feel empowered in their career

• Three times more likely to say their workplace focuses on wellbeing

• And five times more likely to say they are paid fairly and competitively.

Furthermore, 22% of organizations are focusing on optimizing their total reward offering this year. This is not surprising, as it is a key way of improving employee wellbeing and demonstrating an organization’s investment in its employees outside of salary—two critical factors that enable employees to thrive.3

With this in mind, we wanted to hear from employees themselves where benefits sit within the key factors that influence how they feel about their employer.

Figure 1 shows that benefits come fourth in all factors, ranking above colleagues, career opportunities and culture. When analysing further, this ranking stays fairly consistent per age group and location of employee, as well as remaining in the same position of importance as in our research last year.4 Clearly benefits are high on the agenda for employees worldwide, perhaps higher than some employers may think – making it all the more critical to ensure their needs are met.

Figure 2 shows at what stage in the recruitment process employees would ask about an organization’s benefits offering. It is interesting to see that only 15% wouldn’t ask about benefits before accepting a job. And that 29% would ask at a first-round interview. This demonstrates that benefits not only play a critical role in retaining talent (figure 1), but also in influencing the decision making of the job seeker (figure 2).

It’s fair to say from the results that employees see the benefits they receive as an important influence over their feelings for their employer. Even coming higher in importance for employees than the bigger ticket items on the HR agenda such as career opportunities. With this in mind, we will now explore whether employees are getting what they want from their benefits offering, and what aspects are important to them.

3. Mercer, Global Talent Trends 2018, ‘Unlocking growth in a human age’4. Thomsons Online Benefits, 2017, ‘Expectations vs reality: The widening gap in global benefits’


Figure 1: What impacts how you feel about your employers?

20 40 60 80 0

% of employees

Highly impacts my loyalty and positivity

Somewhat impacts my loyalty and positivity

Doesn't impact my loyalty and positivity

Company culture

Convenience of getting to work

Career opportunities

The colleagues you work with

Pensions and benefits

Nature of your role

Professional development

Salary

Figure 2: At what point would you ask about benefits when considering and accepting an offer?

I'd ask about them before accepting a job offer - and they'd have a lot of influence on my decision

I'd ask about them in my final-round interview

I'd ask about them before accepting a job offer - but they'd have very little influence on my decision

I wouldn't ask about benefits before accepting a job

I'd ask about them in my first interview29%

29%

22%

20%

15%

29% of employees would ask about benefits at first-round interview


Employees’ life goals are diverse: look beyond gender and generation stereotypes

A key role of benefits is to support employees outside of work to achieve their personal goals such as health, wealth and happiness. So before looking at what benefits are on offer and how much employees value them, it is important to find out what life goals (both long and short-term) employees want their benefits program to support.

Our research in 2017 uncovered that aligning benefits to employees’ life goals is key for engagement. Unfortunately, however, the results also found that for most employees, whose lifestyles and aspirations are changing, employers hadn’t evolved their benefits at the same pace. This led to significant disparities, particularly for younger generations, between the benefits on offer and their life goals, such as buying a home. A cross-generational need for more support around physical and mental wellbeing was also revealed.5

As well as testing the gap between employee needs and expectations – and also looking at a wider range of goals that may be applicable to today’s employee – we wanted to ensure that individual employee voices on benefits are represented in our research. For example, how do personal life goals differ within an age group? Is it still relevant to group individual’s priorities in this way, or are generational stereotypes not always applicable in global benefits strategies?

Figure 3 shows what life goals are important to employees, grouped by age. The areas where goals differ the most are around younger employees. The results show these groups are more likely to be focusing on a wide range of priorities such as starting a family, travelling, buying a house, socialising, getting married, caring for elderly relatives and career progression. Not surprising when considering the plethora of literature on generational differences in the workplace, for example how values and motives change depending on an employee's age.6

Flatter areas in figure 3 represent where there is more consensus from age groups. For example, around wellbeing (physical, mental and maintaining a healthier work-life balance) which appears to be important for all. This not only shows that wellbeing is high on the agenda for employees, but also that demand for it crosses generations. This further backs up the importance for employers to support this within their global benefits and wider HR strategy. Wellbeing is no longer a new fad, it is now firmly established in the mind of employees.

However, so far we have only been looking at average goals within a big group of individuals. Is there consensus of life goals within an age group? The answer is a firm 'no'. Figure 4 looks at how life goals differ within the 26 to 35 age group, those employees who are most likely to be moving into leadership positions.

Goals which may appear to fit the stereotype for this age group such as buying a house, starting a family, socialising, getting married etc. are not important to a number of people. However, as with the broader employee base – the areas with more consensus of being very important to this age group are all around wellbeing.

What about gender? When we then looked at the differences between male, female, transgender and undisclosed there was 0.01% difference between the importance of all of these life goals to employees – so much so that adding the graph would have not revealed much difference.

Before we move on to what this means for benefits, the message is clear for employers – do not base an individual on the age group that they belong to, or their gender, when setting a global benefit strategy – it is important to look at individuals and their life goals. However, if there is one clear area of importance for all employees, it is the need for improved wellbeing.

5. Thomsons Online Benefits, 2017, ‘Expectations vs reality: The widening gap in global benefits’6. International Journal of Management Reviews, 2017, ‘Generational differences in work values:

A review of theory and evidence’

The message is

clear for employers, do not base an individual's

benefits on the age group that they belong to, or their gender,

when setting a global benefit strategy – it is important to

look at individuals and their life goals.


Figure 3: How goals differ per generation

Percentage of employers

Over 65 56 to 65 46 to 55 36 to 45 26 to 35 18 to 25

20% 40% 60% 80%

Cultural activities (cinema, theatre, museums, etc.)

Improving mental wellbeing

Going on holiday

Sorting out your personal financial situation

Getting married

Saving for retirement

Travelling (1 month plus)

Starting a family

Achieving work-life balance

Socialising (bars, seeing friends, restaurants, etc.)

Enjoying work

Getting fit and healthy

Buying a house

Career progression

0

Caring for relatives or elderly


Figure 4: 26 to 35 age group and how goals differ in importance between individuals

13%39%Getting married 31% 17%

1%4%61%Achieving work-life balance 33%

6% 0%68%Getting fit and healthy 27%

6% 1%58%Sorting out your personal financial situation 35%

5% 2%57%Improving mental wellbeing 37%

11% 1%48%Going on holiday 40%

25% 3%30%Travelling (1 month plus) 42%

4% 1%51%Enjoying work 44%

1%15%49%34%Cultural activities (cinema, theatre, museums, etc.)

18% 1%48%33%Socialising (bars, seeing friends, retaurants, etc.)

Very important to me Not applicable to me Not important to me Somewhat important to me

16%27%50%Starting a family 7%

3%12%40%Saving for retirement 46%

16% 7%31%Buying a house 46%

6%50%Caring for relatives or elderly 34% 10%

2%52%Career progression 37% 10%


Employee demand for their employers’ support is not being met

We have established that grouping employee life goals’ based on their age, gender, or creating ‘personas’, may provide HR teams with a good starting point for their global benefits strategy–as there are goals that are common to individuals. However, once the strategy has gone past the initial stages and become more mature this will no longer be enough to meet employee needs. Employees have told us that what will be important for one person within the 26-35 age group, won’t be important for another. So HR teams should look beyond stereotypes and gain a personalized view of what is important to an individual through data.

So how does this connect to benefits? Our research shows that just because individuals have a wide variety of life goals, it doesn’t necessarily mean there is an expectation from employees for benefits to support them.

We set out to explain how benefits could support the life goals of employees – for example starting a family with childcare vouchers, buying a house with a mortgage advisor etc. – and then asked them whether they would expect their employer to support them on this.

Figure 5 shows the life goals that employees want their employer to support, compared to whether they are reflected in global benefit programs. It is interesting to see there is still a big disparity around what support employees actually want from benefits and what is on offer. In all areas there is roughly a gap that is half the size of the demand – for example, improving mental wellbeing 57% want support and 23% of employers offer benefits for this. In addition, 45% of employees want benefits to help them sort their personal finances and only 20% of employers offer this.

Conversely, areas where employers are meeting employee needs the most are those that are least important to employees: getting married (19% of employers offer compared to 27% of employees who want this support) and socialising (15% offer and 21% want this support).

When looking at life goals that are important to employees generally, and the goals that employees would like employer support on, there seems to be a mismatch in some areas. For example, although over 85% of employees said getting fit and healthy was a life goal (figure 3), only 57% want support in this area (figure 5). The call out here to employers is to find out from individuals what they actually want support on, rather than just what is important to them. Employers have the opportunity to plug a gap in the support employees are already getting outside of work to achieve their goals.

Clearly there is some work to be done overall by employers to address the imbalance and ensure their benefits program supports employees in the areas they really want. This is essential, as not only are benefits becoming irrelevant for employee life goals, but workforces are now expecting this kind of support - as opposed to these benefits being seen as a 'nice to have'.

It is interesting to see there is still a big disparity around what

support employees actually want from benefits and what is

on offer.


Figure 5: Goals that employees want supported (in priority order) vs. whether they are supported

% of employees who want support in these areas

% employees who feel fully supported

26% 70%Career progression

33% 74%Enjoying work

VS.

33% 71%Achieving work-life balance

27% 64%Saving for retirement

23% 58%Improving mental wellbeing

23% 57%Getting fit and healthy

18% 48%Going on holiday

18% 47%Buying a house

17% 45%Travelling (1 month plus)

20% 45%Sorting out your personal financial situation

19% 42%Caring for relatives or elderly

28% 30%Starting a family

16% 29%Cultural activities (cinema, theatre, museums, etc.)

19% 27%Getting married

15% 21%Socialising (bars, seeing friends, restaurants, etc.)

23% of employees felt fully supported to improve their mental wellbeing

58% of employees want support to improve their mental wellbeing


The demand for support changes depending on office location and generation It is interesting to see whether this expectation of support from employers differs depending on generation and region.

Figure 6 shows the life goals that employees want support from their employer on per age group. Although their individual needs differ, there is more of an expectation for benefits programs to support individual life goals from younger employees. For example, 61% of 18 to 25 year olds expect their benefits program to support them on staying fit and healthy as opposed to 43% of 56 to 65 year olds. This is despite the fact that this is a life goal that is important across all age ranges (figure 6). Furthermore 53% of 26 to 35 year olds want support from their employer in sorting their personal financial situation, and only 34% of 56 to 65 year olds expect this. Again this is a life goal that is important for all generations (figure 6).

This expectation from younger employees for support through their benefits must be listened to by employers, especially as they progress through their careers to become the majority of the workforce. Our research shows that these employees are more demanding of their employer and have higher expectations.

Figure 7 shows the life goals that employees want support from their employer on per geographic location. As with generations, there are differences in expectations depending on where the employee is based. Generally there is a higher expectation from employees based in APAC than in other regions for support around life events such as starting a family (42%), buying a house (65%), going on holiday (69%) and getting married (46%). Whereas employees in LATAM are showing more of a demand for support from their benefits in achieving a work-life balance (89%), enjoying work (91%), sorting personal financial situations (59%) and career progression (88%). Finally a clear trend from EMEA-based employees is that they expect the least support from their benefits program compared to other regions, most noticeably in cultural benefits (17%) and socialising (12%).

The workforce is changing at a rapid rate. As in other areas of HR, employers must listen to the needs and expectations of employees as individuals, factoring in how needs in will change within different locations and age groups. There is clearly a demand of benefit programs that is not only not being met, but varies depending on where multinational organizations’ offices are. All of which must be reflected in a global strategy.

This expectation from younger

employees for support through their benefits must be listened to by employers, especially as they progress

through their careers to become the majority of

the workforce.

76% of US and Canadian employees expect support around achieving a work-life balance

71% of EMEA employees expect support around enjoying work

65% of APAC employees expect support around buying a house


20% 40% 60% 80%0

Caring for relatives or elderly

Cultural activities (cinema, theatre, museums, etc.)

Improving mental wellbeing

Going on holiday

Sorting out your personal financial situation

Getting married

Saving for retirement

Travelling (1 month plus)

Starting a family

Achieving work-life balance

Socialising (bars, seeing friends, restaurants, etc.)

Enjoying work

Getting fit and healthy

Buying a house

Career progression

Figure 6: Employees who would like support from their employer around their life goals and how this changes per age group


Over 65 56 to 65 46 to 55 36 to 45 26 to 35 18 to 25


LATAM APAC EMEA US and Canada

Figure 7: Employees who expect and would like support from their employer around their life goals and how this changes per region

78% 71%73%90%Enjoying work

17%28%52%59%Cultural activities (cinema, theatre, museums, etc.)

34%56% 39%50%Caring for relatives or elderly

46% 39%53%59%Sorting out your personal financial situation

19%46% 21%Getting married 33%

64%76%70%89%Achieving work-life balance

67%73%78%87%Career progression

63% 46%72%60%Getting fit and healthy

63% 51%63%62%Improving mental wellbeing

56%74%67%Saving for retirement 72%

16%45% 12%24%Socialising (bars, seeing friends, retaurants, etc.)

65% 46% 37%Buying a house 62%

57% 33%69%45%Going on holiday

45% 29%71%56%Travelling (1 month plus)

32%42% 19%26%Starting a family


Employees’ opinions on their benefits offering are varied, most benefits are not being used to their full capacityWith the life goals that employees want support on in mind, let’s take a look at the actual benefits employees receive and to what extent they are appreciated.

Figure 8 shows a list of benefits that are typically offered in benefit programs and for each benefit, whether employees are offered it, actually use it, or would like to be offered it. The most commonly offered and used benefits by employees are paid time off (56%), retirement plans (44%), healthcare benefits (39%) and financial protection benefits (35%). This is unsurprising considering that these are the big ticket items that form the majority of most traditional benefit programs.

However, there are also a number of benefits that are offered but not used by employees, the most common being counselling services (17%) and retirement plans (16%). In addition there is a striking trend around benefits that are not on offer, but employees said they would be very interested in using. The highest are all around wellbeing: a pot of money to spend on wellbeing (or wellness pot) has a significant amount of employees who are interested in receiving this (44%), closely followed by other wellness benefits - holistic wellbeing (38%), fitness classes (37%) and gym memberships (37%) to name a few.

This supports the previous trends we observed — that wellbeing is a life goal across all segments of employees. It is abundantly clear that employees views are being ignored and there is no excuse from employers given there are plenty of tools in place to meet this growing need.

Finally, benefits that are still relatively new in the market appear to divide the opinions of employees as to whether or not they want them. For example, in regards to support with managing debt, 31% of employees wanted this support from their employer but don’t get it, and 33% were not interested - similarly with support around managing finances (31% want it and don’t get it, and 31% are not interested).

With these relatively new benefits, although there is a demand there, employee opinion is ultimately divided. So when employers are looking at financial wellbeing programs for their own employee base, hearing what their employees have to say is critical before making the investment.

Figure 8 shows that there are a number of benefits on offer that are not used, but also those that employees would like but currently don’t have the option. It is clear that the nirvana from the employer perspective — benefits on offer that employees use and value – is, in most cases, not the reality. The balance can only be struck by listening to these employees — it’s a simple case of whether they want it or not.

With these relatively new benefits, although there is a demand there, employee

opinion on whether they would interest them is divided.


20% 40% 60%0


Annual leave/paid time off

Counselling services

Company car, travel allowence/reimbursement

Childcare benefits

Fitness classes

Gym membership

Support with managing my debt

Retirement/pension plan

Healthcare benefits (medical, dental, optical)

Financial protection benefits (death, accident, disability)

Fitness, gym, sports subsidy/benefits

Support with savings and investments

Social and cultural subsidy/benefits (discounted restaurants,

cinema, museums, galleries)

Virtual access to a doctor

Support with managing your finances month to month

A pot of money to spend as you see fit on your wellbeing

Holistic wellbeing subsidy/benefits (massages, acupuncture, etc.)

Access to financial education and guidance

Figure 8: Benefits on offer and whether they are appreciated by employees

I don't know if I get this benefit

I don't get this benefit and I am not interested

I don't get this benefit, but I am interested

This is offered to me and I use it

I am offered this benefit, but don't use it

37% of employees said they would be interested in gym memberships


Are employees being turned off their benefits?

The best selection of benefits that employees really want to meet their individual life goals could be on offer – but unless employees know about them and can easily access them, they will never be fully used or valued.

In this section we look at how employees want to receive and consume information about their benefits.

Employees want the same experience inside and outside of work. Employee opinion on how they want to receive information and access their benefits, as well as the benefits themselves as we have already shown, are critical. Especially in a world where technology has transformed the way we receive information, shop and manage our day-to-day lives.

Therefore, if employers are looking to replicate a consumer-grade experience of benefits, they must listen to how employees prefer to access information and manage activities outside of work. So we will now explore to what extent employee preferences for accessing information and managing everyday activities translates to their preferences for managing and interacting with their benefits.

Figure 9 shows employees’ preferences for communication tools outside of work. In the majority of areas (other than shopping) there is a clear preference from employees for accessing and managing activities on computer or mobile. For example, for researching and information gathering 67% would prefer to do this on their laptop and 40% on mobile. Computer appears to exceed mobile in all areas, however the closest difference is around shopping (25% mobile and 32% computer). It is also interesting to see that in this tech-enabled world, there are still employees who would prefer to manage activities offline (either face to face or on paper). Trends clearly show a preference towards tech, but other methods are still important.

In a world where tech is blurring the experience between work and personal life, how do these findings translate to benefits? Figure 10 shows employee opinion on each method of managing benefits (from online to offline) - assessing not only whether they receive communications and access their benefits in each way, but also whether they are satisfied with this.

If employers are looking to replicate a

consumer grade experience of benefits, they must listen

to how employees prefer to access information and manage activities outside

of work.

67% of employees would prefer to research and gather information on their laptop


Figure 9: Employee preferences for accessing information and managing everyday activities

20% 40% 60% 80%0

Shopping for groceries and everyday items

Booking holidays

Researching and information gathering

Everyday banking

Shopping for expensive one-off purchases (TV, sofa, laptop etc.)

Managing savings and investments

Watching TV shows and movies

Finding out about news

Booking days out

Percentage of employees

Face-to-face On paper On the phone On the computer On a mobile device (phone or tablet)

Using a mobile assistant (Siri/Alexa/Bixby etc.)

Only 14% of employees who access benefits on mobile are unsatisfied with this method


I can do this and I am satisfied

I can do this and I am not satisfied

I cannot do this and do not want this option

I cannot do this and want this option

N/A

Figure 10: Employee preferences for managing and accessing information about their benefits

20 40 60 80 0

% of employers who agree with statements

In one place on my mobile device through a portal

In one place on my computer through a portal

In different places and on email on my work computer

Through paper forms and posters

Face-to-face with my employer or HR team

On the phone with my employer or HR team

The highest percentage of employees who are satisfied with how they access and manage their benefits are those who do so face-to-face with their employer (46% satisfied) or through online methods (on email, 44% satisfied, or on computer, 42%).

The lowest percentage of employees who are unsatisfied with their method of accessing benefits are those who access on mobile - only 14% said they were unhappy with this. Furthermore the highest percentage of employees want this option to access their benefits on their mobile compared to all other areas (13%).

In addition the least popular communication methods people want access to are offline methods (paper 20% and telephone 18%).

All of these trends in figure 10 mirror how employees prefer to manage their day-to-day activities (figure 9), with computer access coming first, closely followed by mobile. It is also interesting to see the preference from employees for face-to-face interaction not only in shopping, but also with their benefits - perhaps when information becomes more complicated and personal.

In summary, employee preferences for managing benefits reflect how they manage and access information in their personal life. Employees prefer to have a variety of communication tools. However, this preference is currently not being met, as for each method of managing and accessing benefits, over 50% of employees said they were either unsatisfied with this or they did not have the option to access their benefits in that way (figure 10).

The results show that not only is the voice of employees not being listened to when it comes to the actual benefits on offer, but also in how they access them. These findings should encourage employers to truly rethink how they are communicating benefits with employees.

Employee preferences for managing benefits

reflect how they manage and access information in

their personal life. Employees prefer to have a variety of

communication tools available.


What happens when employees’ voice on their benefits is heard?Productivity improves by 20-25% in organizations with engaged employees. And employees who are engaged are 27% more likely to report “excellent” performance.7 However, we know engagement is a complex matter. Rather than focus narrowly on employee engagement and culture, organizations are now developing an integrated focus on the entire employee experience, bringing together all the workplace, HR, and management practices that impact people on the job.8 And benefits play a critical role in this experience.When taking this into consideration, are those employers who are listening to employee opinions on benefits really increasing engagement?8

For example, if they are offering a variety of relevant benefits that support employee life goals and are accessible in the way they want – does this increase engagement with the organization as a whole? And does this change how employees feel about their employer?

Before we analyse this association, figure 11 displays how the 2,200 employees said they felt about different elements of their benefits program. From what is on offer and how it is managed, to the support available to choose benefits and how employees feel about how they access them.

It is important to give a reminder that these statements are purely from the employee perspective, i.e. unlike reward professionals, they are unaware of the multitude of complexity behind global benefits delivery.

Figure 11 shows that only 47% of employees say they have a good selection of benefits to choose from. Just 21% would strongly agree they can easily access their benefits, while only 23% would strongly agree they have what they need to understand the benefits on offer.

The results in figure 11 demonstrate that the employee voice on benefits is not being listened to, and therefore isn’t reflected in global benefits strategies. They also show that a large proportion of employees are unsatisfied with their benefits offering.

While these results do not look good from the employer perspective, we wanted to show you what happens if you get this right. So what happens when employees can easily access and use the benefits that help them achieve their life goals?

7. Deloitte, 2017, "The employee experience: Culture, engagement, and beyond"8. Gallup, 2015, ''Well-Being Enhances Benefits of Employee Engagement''


I receive useful information about the benefits

Figure 11: To what extent do you agree with these statements on your benefits?

The benefits I receive will affect future job seeking decisions

Strongly agree Strongly disagree Disagree Agree Neither agree nor disagree

20%40%60% 0

I have what I need to understand the benefits on offer

I have used my benefits and they have a positive impact on my life

The benefits I receive make me feel valued by my employer

I have the support to help me take action on the benefits on offer

I can easily access my benefits

The benefits I receive affected my decision to work for my employer

I am happy with the amount my employer spends on my benefits

I have a good variety of benefits to choose from

20%

% of employees

60%40%

Just 21% of employees strongly agreed that they can easily access their benefits


To find out how meeting individual's needs through benefits impacts engagement, we have split the findings into two key groups: how happy employees are with the way they access and receive communications on their benefits (figure 12), and how happy they are with what is on offer. Or, in other words, whether the benefits on offer are relevant for them and actually impact their health, wealth and happiness (figure 15).

The trends are strikingly positive for those organizations who are listening to their employees and meeting their needs.

Figures 12 to 14 show that giving employees easy access to their benefits and providing sufficient support and communications so they truly understand, and know how to utilize, what is on offer has a significant impact on employees’ engagement with their organization. It actually has a similar impact on engagement to the benefits that are on offer themselves (figure 15). Not only are employees who are 'clued-up' on and can easily get hold of their benefits more loyal, they are also proud to work for their organization, more likely to be advocates and can see themselves with their employer for the foreseeable future: • 81% of employees who can easily access their benefits said they feel loyal to their

employer, as opposed to 51% who find it hard to access their benefits (figure 12).

• 79% of employees who can easily access their benefits said they were proud to work for their organization, as opposed to 37% who find it hard to access their benefits (figure 12).

• 77% of employees who received support from their employer to take action on their benefits said they would recommend their employer to a friend, as opposed to only 25% who did not receive support (figure 13).

• 77% of employees who understood the benefits on offer said they saw themselves at their organization for the foreseeable future, as opposed to only 34% who did not understand the benefits on offer (figure 14).

Figure 15 shows that providing a variety of benefits that are relevant for employees and improve their personal lives has a significant impact on how an employee feels about their organization. Employees who have benefits that are personal to them, helping them achieve their life goals are likely to be loyal to their employer, identify with their organization’s vision and values – as well as being more likely to be an advocate for their organization.

• 80% of employees who said they had a good variety of benefits to choose from said they identified strongly with their organization’s vision and values, as opposed to 40% of those who didn't have a good variety of benefits.

• 79% of employees who had a good variety of benefits to choose from said they would recommend their employer to a friend, as opposed to 36% of those who didn't have a good variety of benefits.

• 81% of employees who said their benefits have had a positive impact on their life said they felt loyal to their employer, as opposed to 48% whose benefits did not impact their life.

Figures 12 to 14 shows that giving

employees easy access to their benefits, as well as

providing sufficient support and communications so they truly understand how to utilize them

has a significant impact on engagement.

Figure 15 shows that providing a variety of

benefits that are relevant for employees and improve their personal lives has a significant impact how an employee feels

about their organization.


20% 40% 60% 80%0

I can access some of my benefits

It is hard to access my benefits

I can easily access my benefits

% of employees

Figure 12: Engagement with organization and extent to which employees can easily access benefits

79% of employees who can easily access their benefits said they were proud to work for their organization, as opposed to 37% who find it hard to access their benefits

I see myself here for the foreseeable future

I feel loyal to my employer

I identify strongly with my organization's values and vision

I would recommend my employer to a friend

I am proud to work for my organization


77% of employees who received support from their employer to take action on their benefits said they would recommend their employer to a friend, as opposed to only 25% who did not receive support

81% of employees who can easily access their benefits said they feel loyal to their employer, as opposed to 51% who find it hard to access their benefits

I have some information to understand

the benefits on offer

I don't have what I need to understand the

benefits on offer

I have what I need to understand the benefits on offer

Figure 13: Engagement with organization and how much support they receive from their employer

% of employees

20% 40% 60% 80%0







20% 40% 60% 80%0

I have some support to help me action my

benefits

I don't have support to help me action my benefits

I have the support I need to help me action

my benefits

% of employees

Figure 14: Engagement with organization and employees' understanding of benefits on offer

77% of employees who understood the benefits on offer said they saw themselves at their organization for the foreseeable future. This is opposed to only 34% who did not understand the benefits on offer.







I have some benefits that I want

I don't have any benefits that I want

I have a good variety of benefits to choose from

Figure 15: Engagement with organization and extent to which they have a good variety of benefits to choose from

20% 40% 60% 80%0

% of employees

81% of employees who said their benefits have had a positive impact on their life said they felt loyal to their employer. This is opposed to 48% whose benefits did not impact their life.

79% of employees who had a good variety of benefits to choose from said they would recommend their employer to a friend. This is opposed to 36% of those who didn't have a good variety of benefits.







ConclusionThe needs of employees can no longer be ignored in global benefits strategies.

This whitepaper has given employees’ around the world a voice on benefits. Something that is certain is that employees will share their views with colleagues, friends and peers. However, unless employers ask, employees may not share their views with the organization, so we encourage you to ask and listen. Employers who do, and respond by ensuring their benefits meet their employees’ needs, will reap the rewards in seeing more of their employees become advocates and share their experiences of what great looks like.

We have proven that: • Reward and benefits have the potential to significantly impact employees’ lives and

therefore how they feel about their employer.

• Wellbeing is important to all employees – no matter the age and location. Generation stereotypes need to be broken; employees’ goals and aspirations are different for everyone, even within age groups and regions.

• Employees are expecting the same experience as they get outside of work – tech enabled, easy access, communications that help them understand what benefits are being offered etc.

• And finally, there is a lot of room for improvement for employers to offer the benefits that their employees want, and support their personal life goals.

Organizations must wake up to the fact that ignoring their employees’ perspective on benefits is no longer an option. Competition is increasing as market-leaders are already listening to their employees, and if an employee has the option of working for a company that supports them beyond their salary and career – helping them meet their personal aspirations around health, wealth and happiness – they will most likely choose that option.

How are we so sure? As shown in this whitepaper, the generations that are going to form the majority of your workforce in 10 years’ time (by 2025 64% of your workforce will be generation Y (21-35 years old) and Z (6-20 years old) ) are telling us now they expect this kind of tech-enabled personalized support from benefits.9 Not only this, but that it has a direct impact on their job decisions and their loyalty to their employer.

Where can you start? As in other areas of HR and consumer industries – data is the key to hearing, collating and doing something about your customers' (read: your employees’) perspective. These voices on benefits need to be collated at a global level so you can map trends, predict the future and adjust your global strategy appropriately.

9. www.millernash.com


Thomsons Online Benefits is a SaaS provider of global employee benefits and employee engagement software. It is a wholly owned subsidiary of Mercer, a global consulting leader in advancing health, wealth and career. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC).

Thomsons’ award-winning platform, Darwin™, is the global market leader for automated employee benefits administration. With over 2 million worldwide users, Darwin™ connects employees with their benefits in over 90 countries and 30 languages. By using the right combination of editions, Darwin™ provides a tailored solution to meet a variety of employee benefit and reward needs, including employee engagement, managing risk, controlling costs and streamlining benefits administration. Its ability to constantly evolve and cater for shifting workforce needs has made it the provider of choice for seven of the world’s top ten technology companies.

Thomsons has received 105 industry awards, including the prestigious Brandon Hall Group gold award for Best Advance in Rewards and Recognition Technology in 2015. Mercer and Thomsons combine world class consulting and broking with innovative technology that is driving transformation in the way that benefits are designed, communicated and administered.

To find out more about Thomsons’ point of view, experience and services in any of the areas covered in the report please get in touch: [email protected]

About ThomsonsOnline Benefits

Global Employee Benefits Watch

Why not check out our Global Employee Benefits Watch insights? Our website has a number of resources that show how market

leaders are using technology to manage their global benefits centrally, using the data and insights from this to meet their employees’

benefits needs and deliver true business value.

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