Will they stay or will they go? The value of employee rewards to boost retention

Employee discount schemes can play a key role in boosting the value of your reward package.

Experts have long argued over the impact of pay on job satisfaction. But one area where money in your employees’ pockets really makes a difference is in the attraction and retention of staff. This is particularly true in the current job market where demand for talented people outstrips supply. That is why around half of employers have increased staff salaries in the past 12 months or plan to do so in 2019, according to recent Labour Market Outlook reports from the CIPD.

Although pay matters, non-salary benefits also play a critical role in the “should I stay or should I go?” calculation that many employees will be making at some point this year. In fact, month-on-month and day-to-day, employee benefits which make life easier or more affordable are the ones that employees really appreciate.

One simple way of boosting the value of your employees’ pay packets – particularly for those in lower wage brackets - is to provide an employee savings scheme. This is a benefit which allows your people to make savings on their regular life expenses. They work by giving your employees access to cash back from supermarket shopping, discounts on large expenses like travel as well as savings on meals out and entertainment.

Yet if you want to make sure your employees benefit from this benefit, it isn’t enough simply to put a scheme in place.

Understand your audience

Employee savings benefits different people in different ways. Older workers or empty nesters with no children will be interested in different things from working parents or employees who are still young, free and single. In our experience it pays to consider how you can promote the benefits which will interest these different demographics. 

Target and time your communications

Employees can make big savings at the times of year when there is pressure on household budgets. Targeting the promotion of your scheme ahead of summer holidays, Black Friday, Christmas or the new school year will remind your employees that the scheme can save them cash on things they would be spending money on anyway. 

Communicate the cash savings 

The real value of employee savings is the hard cash it saves your people each month. Think creatively and use infographics of typical employees to illustrate simply the specific areas where they can save. 

Ask for feedback and find advocates

People use employee savings schemes in different and surprising ways. Ask your employees how they are making the most of the scheme you have in place and which savings they find most useful. Use these examples to promote your scheme or if possible, use these employees as scheme advocates.

In uncertain environments, it’s hard for any business to justify inflation-busting pay rises. However, employee savings is one sure-fire way of putting more cash in your people’s pockets every month.

The author is Andy Philpott, sales and marketing director at Edenred UK.

Author: Andy Philpott | Category: Blog | 05/02/2019 | 0

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