To add insult to injury, when asked which benefits they would like to see added to their package, employees often mention things they already have.  Only 21 per cent of staff, for example, believe they have access to Childcare Vouchers – when in fact 82 per cent of companies offer them.  When asked, 27 per cent of employees say they have healthcare benefits, although in reality 57 per cent receive them.

Part of the problem is that benefits communication is often ‘front-loaded’.  A new member of staff arrives and they are bombarded with information about everything from health and safety and where to park the car to how to claim expenses and put in a request for annual leave.  

Someone from HR will usually talk them through their benefits package at this stage – or at the very least the information will be included in the staff handbook.  But there’s so much for a new recruit to take in that the information often isn’t fully digested and almost certainly isn’t remembered.  The company thinks it has ticked the box by telling employees what’s available – and the subject isn’t mentioned again.

Employers who fail to keep benefits communication going are, however, missing a real trick -  because if staff have a full picture of the true value of their benefits package it can contribute enormously to engagement levels. 

In a difficult economic climate, it helps employees appreciate that although a pay rise may not be on the cards, their employer is compensating them in other ways and helping the family budget go a bit further.  If they have that ‘nice warm feeling’ about the business, they are much more likely to go the extra mile and do their best to meet whatever challenges they are presented with. 

Maintaining high levels of employee engagement is also a good way to help future-proof the business.  Talented employees who feel they have been treated well when times are hard are much less likely to start looking around for new opportunities when the situation improves.

Research has shown that companies who offer flexible benefits plans find it easier to get employees to truly understand the total value of their reward package.  Fifty eight per cent of businesses say that going down the flex route has helped to improve employee’s appreciation of their benefits, while 39 per cent said there had been a knock-on effect with levels of employee engagement rising.

This is because companies who offer flex have the opportunity to get employees more closely involved with their benefits.  The individual takes an active role in choosing which benefits to draw on –  and the business has a valuable opportunity to personalise benefits communication.  It can reinforce messages about what is on offer, for example, encourage take-up at key times and explain how specific benefits might be particularly useful to people at different stages of their lives and careers.

Companies who communicate flex well have recognised that the key to success is to find the right communications approach for your business.  One size generally doesn’t fit all and you will need to use a mix of communications channels to get the message across. 

Technology-savvy Generation Y employees, for example, will almost certainly expect to get information and updates via email, intranet and social media.  But you also need to consider whether all of your employees have regular access to a computer – and think about whether some of the fine detail is better conveyed in conventional written form.  Line managers also have an important role to play in talking to employees about benefits face-to-face, although they sometimes need support and encouragement to do this. 

Whatever mix of channels you choose, if you want to reap the benefits in terms of engagement it’s vital to keep the momentum going.   As the old communications mantra goes:  “Tell them, tell them you’ve told them, then tell them again!”

The findings are not revolutionary – the top risks identified are the same as in previous years – but there has been an interesting shift in priorities over the past 12 months. 

The top issue now keeping reward practitioners awake at night is that despite their best efforts, employees still don’t seem to appreciate the total value of their reward packages.  Equally frustrating (and key to this lack of appreciation) is that line managers have a poor understanding of reward and are clearly not getting the message across to their teams. 

Other issues causing concern are that (understandably in the current climate) organisations are unable to offer staff any prospect of a pay rise – and that reward is increasingly not being perceived by those on the receiving end as fair or equitable. 

The shift in the rankings is of course a reflection of the business and economic challenges facing organisations right now.  But dig behind the findings and it’s clear that the role of line managers in reward is an area that needs serious attention.

 The line manager is the ‘glue’ that helps employees connect positively with their reward package.  They are in prime position to not just explain the value of what’s on offer – but to ensure employees feel recognised and appreciated for their efforts. 

This is particularly important in challenging times when everyone is under pressure to do more with less.  Teams are depleted, workloads have increased, morale is low – and there’s not even the prospect of a bonus or salary hike on the distant horizon. 

The problem is that line managers (who are of course hard-pressed themselves) are often simply not equipped with either the information or skills to use reward as a tool to improve performance and employee engagement. 

They need more support and better quality data from their colleagues in HR to help them communicate effectively with their team and ensure the reward that is on offer has maximum motivational impact.

 So how can organisations help line managers make a success of their pivotal role in reward?  The following ideas may help: 

• Provide managers with a small budget that can be used to provide on-the-spot rewards for employees who go the extra mile or demonstrate outstanding performance.

•  Encourage managers to organise team events to ensure their people are clear about strategy, direction and priorities.  These don’t have to be high profile or expensive.  Just a simple get together, part business, part social, can do much to foster team spirit and re-energise dispirited employees.

• Make sure up-to-date information about individual reward packages, together with benchmarking data, is at manager’s fingertips.  This will ensure they are on the ‘front foot’ when having discussions with employees and can illustrate the true value of what’s on offer.

• Hold regular forums where line managers can get together to share experiences and ideas for motivating and rewarding their teams in difficult circumstances.  It’s a great way of providing peer support, sharing best practice and promoting the ethos that ‘we’re all in it together’.

• Open the communication channels between line managers and HR.  If managers are fully informed about the challenges and issues faced by the reward team, they will not only deepen their understanding of reward practice, but will also be in a better position to communicate clearly and effectively with employees.

• Consider the introduction of an Employee Savings programme, which will give line managers a tool they can use to reward staff on an on-going basis and reinforce messages about the kind of behaviours that are encouraged.

These kind of initiatives will help ensure line managers make a real contribution to the overall success of a corporate reward strategy.  A well briefed, well trained line manager will help employees focus on what’s important, feel valued for their efforts  and will increase their teams’ appreciation of the reward that’s on offer.

Are your line managers equipped to support your reward strategy?  We look forward to hearing your views and experiences.

Data from HR consultancy Mercer suggests that workers have yet another year of below-inflation pay rises to look forward to in 2012.  Its quarterly Pulse survey shows that UK companies are budgeting for an average three per cent increase for staff across the board. Employees in the UK are set to fare slightly better than their counterparts in Western Europe – but any increase will still be less than the current five per cent level of inflation.

 The CIPD has added to the general malaise with a survey showing that employers are in fact hedging their bets on all employment related decisions, from pay through to recruitment and redundancy.  UK plc is in ‘wait and see’ mode, says the Institute, and is quite understandably exercising caution against the backdrop of the Eurozone crisis and wider economic uncertainty.

None of this of course is particularly good news for beleaguered employees who continue to face enormous financial pressure thanks to growing travel, fuel and food costs.  With no prospect of a meaningful salary increase on the horizon – and no bonus likely either – people can easily get dispirited at work and become passengers rather than enthusiastic participants in the business.

Forward-looking employers are beginning to realise, however, that even if they can’t promise a pay rise, there are ways they can help staff eke out the family budget and meet the higher cost of living.  This is illustrated by the high demand we are currently experiencing for our Employee Savings products – a cost effective way for organisations to show they appreciate the pressure their people are under and value the contribution they are making.

Employee Savings allow staff to make their money go further, in a way that suits them, all year round.  Employees simply log onto a personalised website which gives them access to a menu of discounts on everything from food and drink to travel, motoring and finance.  They can also take advantage of specially negotiated cash-back offers on everything from utilities to insurance as well as enjoy discounts on leading brand products.

The fact that staff are able to make a personal choice about exactly how they spend the level of reward you have given them makes the motivation factor even more powerful.  They may decide to make the family budget go further by using a discounted supermarket shopping voucher, for example, or take the opportunity to treat the family to a trip or meal out.

When times are tough, these small savings can make a big difference – not just to your employees finances, but also to the way they feel about working for the business.  The fact that the savings are accessed via a branded website also provides a constant reminder that their employer values them and is doing its best to support them in difficult circumstances.

Employers who want to maximise the motivational impact of this type of scheme would be well advised to start planning now for how they will communicate it to staff.  A New Year launch, for example, sends a really positive message to employees about the year ahead.  For those who have existing schemes, a well-timed piece of communication can serve to remind people about what is on offer and can help to boost enthusiasm when they return to work after the festive season.

Carefully crafted communication will reinforce messages about the kind of behaviours that are encouraged and rewarded in the business and will help to increase engagement, even in a company’s darkest hours.

So how are you planning to reward and incentivise your employees in the run up to 2012?  We look forward to hearing about your experiences and ideas.

At Edenred  we want to go that extra mile to help, with that in mind,  we have produced ”Think Ahead” a magazine which includes a series of news stories and articles. With best practice, case studies and ideas, we can help you with your people challenges and work with you to develop plans for 2012.

To coincide with the launch of “Think Ahead” magazine we are giving one lucky reader the chance to win the the new Apple iPhone 4S.

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Bank of England statistics show that in the past year alone, household debts have risen by more than £5 billion as people increasingly borrow money to fund their day-to-day living.  Further research, conducted by Asda, says the average family’s spending power has dipped by more than £700 over the past year due to rising petrol, energy and food prices.

At a time when employees are clearly struggling to make ends meet, it would be easy to think that cash incentives are the best way to motivate employees.  Recent research, however, suggests that non-cash rewards – such as retail or travel vouchers – are actually more appreciated by staff.

The survey, conducted by the Incentive Research Foundation (IRF) and the Incentive Federation, suggests that these non-cash incentives better capture people’s imagination and are therefore more likely to have an impact on performance levels – and ultimately the bottom line.

“Tangible awards capture employee attention,” says Jeff Broudy, Chairman of the IRF Board of Trustees.  “That attention yields better performance and drives several practical business outcomes, such as increased sales, decreased waste and reduced absenteeism.”

“The old notion that cash is preferred by employees and is therefore more impactful is not true.  Businesses need to change with the times and their reward strategies must as well.”

UK plc is of course well aware of the availability of non-cash incentives and many companies are making use of them as part of the reward mix.  There is, however, still a question in many reward managers’ minds about exactly why a voucher should be more impactful than straightforward money in the pocket.

The answer is that non-cash incentives provide a double whammy.  The employee has the satisfaction of having the voucher handed over to them – and then gets an additional warm glow a few weeks later when they actually go to redeem it.

Cash that is simply transferred into a bank account misses both of those motivational points in time.  It just merges in with the general finances and is quickly swallowed up on run-of-the-mill household expenditure rather than being used to fund a treat or visibly supplement the family income.

Non-cash incentives also give employers the opportunity to think about the kind of reward that might be most appropriate for individual employees, rather than adopting a one size fits all approach.

Edenred’s Compliments Select, for example, provides recipients with a code so that they can select their own voucher up to a given value.  The employee can choose whether to select a supermarket voucher to supplement the family food shop or to opt for a retail voucher which might count towards the cost of Christmas presents.

The reward itself has a motivational impact, but the employee also feels that the business has recognised their personal effort and is treating them like an individual.

Forward-looking organisations have recognised this and are placing more emphasis on non-cash incentives within their wider reward programmes, particularly in the run-up to the festive season.  And of course it is in January – when everyone needs a boost to get them working productively after the extended break – that they can have a particularly significant impact on the bottom line.

So what’s your experience of using non-cash incentives?  Let us know how it has helped you improve motivation and productivity.

A whole new breed of marketing techniques has sprung up alongside these technological developments.  It’s now possible for companies to gather sophisticated intelligence about our likes, dislikes and buying habits – and to target us one-to-one with information about the products and services that meet our needs.

It’s perhaps surprising then, that organisations have been so slow to embrace the possibilities of personalised communication when it comes to getting employees on board with their benefits programme.

Our experience shows that many companies remain locked into a model of mass communication.  They are still sending out one-size-fits-all emails and expecting employees to negotiate their way through reams of information on the corporate intranet.

The trouble with this approach is that it’s incongruent with the way people now expect to receive information and interact with those around them.  We now live in a world where people take it for granted that they can cherry pick the information they want to access and choose exactly how and when they look it.

Employees also no longer see themselves as passive recipients of information.  They expect to be given the opportunity to ask questions, get quick responses and to engage in a dialogue with the business.

This is particularly true of Generation Y – the young people coming into the workforce now.  They have grown up with the likes of Facebook and instant messaging and are frankly a bit shocked when they get into the workforce and find these channels of communication are not widely available.

There’s no doubt that good communication is the key to success with any benefits programme.  You can offer the best benefits programme on the block, but if employees don’t really understand what it means personally to them, they are unlikely to either value or engage with it.

Personalised communication provides a real opportunity for the business to explain not just what benefits are on offer, but how these might fit into an individual’s life and work plan.  Of course communicating with people one-to-one also has the knock-on effect of making employees feel valued and more than just a faceless number in a sea of staff.

So why the reluctance to embrace the latest technology and exploit the opportunity it offers to enter into a meaningful conversation with employees? 

In our experience, it’s often fear that’s the issue.  Organisations are frightened that if they open the doors to social media, for example, they will unleash an animal that can’t be tamed and controlled.  If HR people are not familiar with the concepts of instant messaging, video downloads and fast response codes, they are worried that they will get it horribly wrong – or will make themselves look hopelessly outdated.

We believe it’s time for employee benefits professionals to get a bit brave and welcome the opportunities presented by the latest technology with open arms.

It’s about turning current communication philosophy on its head and thinking about the way people live their lives and how you can shape the dialogue you have with them around that.  It’s also about asking them what they want to know, how they would like to access information and what methods of communication suit them best.

Of course it’s also a great opportunity for HR to get closer to the corporate communications and marketing team – and for both parties to work together to find fresh and exciting ways of ensuring employees take full advantage of the benefits on offer to them.

So are you ready to ring out the old and bring out the new when it comes to benefits communication?  We’d like to hear your views and concerns and would welcome any best practice you’d like to share.