7 Strategies to Unlock the Full Potential of Your Employee Benefits

Many HR professionals get a nagging sense that their employee benefits policies aren’t quite providing the value they hoped for.

In fact, half (48%) of HR directors say they are seeing poor uptake because staff “don’t seem interested”, according to a survey by Nous.

Yet companies are investing huge funds into their employee benefits. One estimate suggested that 32% of a company’s salary costs go towards employee benefits.

My day job is to help companies achieve good value on their benefits policies. I’ve long understood that it’s not simply about the cost of a policy - whether that’s health insurance, life insurance, or income protection coverage – it’s about whether or not it provides practical support to employees.

From my experience, there are a few simple steps that HR teams can take to ensure staff appreciate their benefits while at the same time providing value for the company itself.  

1. Be Clear on What You Want to Achieve

First things first, you need to know why you’re offering employee benefits in the first place: 

• Are you trying to reduce turnover by improving employee retention? 

• Are you looking to reduce absenteeism and create a healthier work environment? 

• Are you seeking to attract top talent in a competitive market?

It’s worth listing all the things you wish to achieve through your benefits strategy so you can work out which perks will best help you achieve those goals and put in place relevant performance metrics.

For example, if you want to tackle staff sickness – you might need to dig deeper and pinpoint what the reasons are. Is it colds or flu, musculoskeletal issues, or mental health problems? This can direct you to the health and well-being policies that will help you most.

Once you're clear on your goals, it’s time to review your current benefits offering. Is it helping you tick those boxes? If your goal is retention, for instance, are you offering benefits that employees actually want? If you want to attract talent, how does your package compare to competitor offerings?

2. Ensure Employees Want the Benefits

You could have the best, most comprehensive employee benefits package, but it won’t matter if your employees don’t find it useful. This is where involving your team can be beneficial. 

A simple staff survey can provide valuable insights into what your employees really want. Do they value health and wellness perks? Are they interested in flexible working arrangements or childcare support?

Give them a list of options to grade in order of preference – this will give you a good idea of what they want.

You can also check current usage data if available via your benefits platform. But just be aware that low usage rates are not necessarily a sign that a benefit isn’t valued - it could be due to a lack of awareness. If staff don’t know about the benefits available to them, it’s unlikely they’ll make use of them!

It’s important to take the time to understand what your employees want so you can adjust your benefits to better suit their needs. This will result in happier and more engaged employees. 

In our own survey of UK start-up employees, we found that three-quarters (78%) had been asked for feedback on employee benefits. Make sure you’re not in the 22%!

3. Make Benefits Easy to Access

Employees shouldn't need to jump through hoops to make use of what’s available to them. User-friendly digital platforms can make all the difference here.

Make sure the systems you use to manage benefits are easy to navigate and accessible to everyone, whether it’s through an online portal, mobile app, or dedicated HR support. The easier it is for staff to access their benefits, the more likely they will use them.

Even if the platform is simple to use, staff will need onboarding and, thereafter, occasional reminders about the platform, what’s on there, and how they can access it.

4. Raise Awareness Through Constant Communication

Your employees might need to learn about some of the benefits available, especially if your package is extensive. Employees can’t use what they don’t know exists, so raise awareness by regularly reminding your team about the benefits available to them. 

Use all available platforms, including:

• Email

• Apps

• Posters in common areas

• Team presentations

• Employee benefits platforms

Holding an annual benefits presentation or sending regular updates can help ensure employees know what’s on offer. Even one-to-one sessions can help employees understand what benefits are available to them. The more familiar they are with their benefits, the more likely they will use them.

The goal here is to communicate clearly and consistently so everyone is fully informed and knows how to take advantage of their benefits. 

As an employee benefits brokerage, we often hold onboarding sessions for client teams so they understand exactly what benefits they have and how they can access them. 

5. Make Sure You’re Getting the Best Deal

Ensuring your company gets the best value from its benefits package is important. Costs can add up over time, so regularly check the market and your policy agreements to make sure you're getting the best deal.

This is where a good broker comes in. Playing the market and reviewing your options at each renewal period ensures you’re not overpaying or missing out on better options. A broker can also use their insurer contacts to leverage better deals than would otherwise be available.

6. Review the Features of What You Already Offer

It’s easy to overlook all the features and benefits you currently provide. Many companies don’t realize what’s in their benefits package and end up double-buying. For example, you might have a health insurance plan that includes an Employee Assistance Programme (EAP), but you might also be paying for a separate income protection plan that offers a similar EAP.

Take the time to understand your current benefits package and identify any overlaps. This will not only prevent unnecessary spending but also ensure that your employees make the most of what’s available.

7. Move Beyond a Tickbox Approach

Maximizing the potential of your employee benefits requires more than just offering a standard package or ‘tickbox’ approach. Have clear goals, make sure the benefits match your employees' needs, and make them readily accessible to everyone. 

Consistently review what you already have and raise awareness in the workplace to create an employee benefits program that will attract and retain employees. 

Finally, benchmark what you offer against the competition to ensure you can, at the very least, match what other companies in your industry are offering.

I hope this gets you thinking!

Charlie Cousins is Founding Director at employee benefits brokerage, Hooray Health & Protection. He has a passion for helping start-ups and SMEs get affordable health and protection policies for their workers.