In an era marked by unprecedented workplace transformation, HR professionals and business leaders across the UK face a pivotal challenge: to realign their benefit, reward and recognition strategies with the nuanced needs of a diverse workforce. Meeting these demands can be difficult to navigate, which is why we recently commissioned an in-depth piece of research, to shed light on the attitudes and experiences that shape the effectiveness of our collective efforts in this area.
The insights from our study, which encompass the perspectives of 502 HR professionals and 505 C-suite executives, along with feedback from a diverse group of 2,003 employees, are more than mere data points—they are the voices of those at the forefront of the evolving workplace. As we navigate the aftermath of the pandemic, and the phenomenon known as the ‘Great Resignation’, it’s clear that employees across the board are seeking greater recognition; recognition that resonates with their personal and professional lives. However, what is staggeringly evident from the research findings is that HR and business leaders must work better together to create and deliver programmes that meet the needs and wants of today’s workforce.
With 38% of employees considering benefits crucial in accepting a job, yet 65% demanding improvements, there’s a clear generosity gap. Furthermore, a striking 47% of employees feel their leaders are out of touch with what they seek from reward programmes. The result is a pressing need for benefit strategies that are embedded into the everyday reality of employees lives and a wakeup call for HR and leaders to set aside their differences for the good of the business.
Those differences should be of concern to those in HR as 20% of C-suite respondents believe their HR team isn’t invested enough in reward programmes, while 18% cite a skills deficiency within those teams. Conversely, 18% of HR professionals see the lack of C-suite support as a major hurdle. This mutual discontent suggests a desperate need for a unified front in managing rewards, yet only 50% of HR departments and almost equally 45% of leadership teams are seen as responsible for deciding on rewards.
This lack of clear decision-making hierarchy exacerbates this issue with a time lag between how often HR and leaders discuss the strategy. Almost three quarters of HR respondents state their department reviews mission, purpose and values at least every five months, whereas CEOs are most likely to be involved every six to 12 months.
To foster mutual understanding and support in delivering better employee benefits, reward, and recognition, HR and leaders should consider these five key strategies:
- Establish clear roles and responsibilities by defining the decision-making roles of HR and the C-suite in reward and recognition programmes to prevent confusion and ensure alignment.
- Seek to improve communication and trust, as nearly half of HR professionals and many C-suite leaders seek more collaboration. Regular meetings to review processes can enhance this relationship.
- Address the skills gap in managing these schemes by advocating targeted training for the HR team and involving C-suite leaders in strategy and oversight, aligning with organisational goals.
- Leverage the CEO’s involvement to ensure these programmes align with wider company goals and values, as 42% of HR respondents view the CEO’s role as crucial in achieving alignment.
- Finally, introduce regular reviews to adapt strategies, encouraging a culture of continuous improvement by involving both HR and leaders in reviewing the mission, purpose, and values associated with reward and recognition programmes.
If HR and leaders can swiftly address and move beyond their own communication challenges, they can then turn their attention to re-calibrating their benefits schemes to meet the evolving demands of their employees.
Broad but relevant offerings: Given that 38% of employees were attracted to their roles by the benefits on offer, and 65% are calling for improvements, offering a wide array of benefits is crucial. These benefits must also be closely aligned with the varied needs and expectations of the workforce. Businesses should tailor their benefits packages to include not only financial incentives but also practical perks such as additional days off and flexible working hours, reflecting the desire for a better work-life balance and improved overall wellbeing.
Accessibility and personalisation: The research highlighted a disconnect in how benefits are accessed and perceived, especially among remote workers and those desiring benefits that extend to their families. Less than half of employees felt their company’s benefits, reward and recognition programmes aligned with their personal values and aspirations. This figure drops to 39% of those aged 45 to 54, and 35% of employees aged 55 or over.
Personalising the offer to cater for diverse lifestyles matters. By investing in personalisation businesses will ensure employees can easily engage with the benefits that suit them, thereby increasing perceived value and satisfaction.
Continuous engagement and communication: With more than half of employees feeling their efforts have gone unrewarded in the past year, it is vital that HR regularly communicates the benefits of their scheme. Engaging employees by promoting the benefits on offer, using a variety of communication channels to reach all individuals will dramatically help to address this. Regular updates, success stories and feedback options will also boost awareness and appreciation of the full range of benefits available.
It’s simply not enough to offer a plethora of benefits; HR and business leaders must ensure these are relevant, accessible, and align with employees’ values. It’s time for a cultural shift that places employee satisfaction at the core of corporate strategy. This entails adopting a holistic view of employee well-being, fostering open communication channels, and nurturing a culture of recognition that values each individual’s unique contributions.
The successful organisations that tune in and listen to these requirements will need to adapt swiftly, and implement strategies that speak to the hearts and realities of their people. It is for HR to craft an employee experience that is as rewarding as it is productive with the whole-hearted support of the C-suite. Now is the time to unite in reflecting, recalibrating, and reinvigorating the strategies and programmes that will define your success in recognising and valuing your most important asset: your people.
