Employee Benefits Programs – Australia's best kept secret to increased morale, loyalty and engagement.

As the war on talent heats up again, leading companies are looking for new and innovative ways to enhance their Employment Value Proposition and gain a competitive edge. A recent Chandler Macleod survey highlighted that a massive 71% of Australian employees will be reviewing their employment options in 2010.

Innovative companies are recognising the contribution a tailored Employee Benefits Program can make to their Employment Value Proposition. But what exactly is an Employee Benefits Program? Employee Benefits Programs are a tool to achieve cultural change within the workplace. They provide employees with benefits that enhance their lifestyle and wellbeing. An effective employee benefits program will include an extensive selection of benefits that provides employees with an increase in their disposable income, 'perks' or preferential treatment and freed up leisure time.

While very common in both the US and UK, Employee Benefits Program have until recently been Australia's best kept secret. However the benefits marketplace is changing fast. With leaders in a wide range of industries (financial, manufacturing, FMCG, Medical to Motoring for example) implementing Employee Benefits Program, companies in Australia are fast recognising the advantages an effective benefits program can provide to their bottom line. A recent Mercer survey found that organisations are looking outside the remuneration box and considering other human resources levers on which to increase their spending, in which 24% are considering recognition programs and 22% are considering work lifestyle benefits.

How much is your employee turnover costing you? Recent research via an AHRI report from Veridon and Unisys analysis allocated the cost of losing a mid level employee at 1.5 times their annual salary. When you consider the cost of recruitment, training, lost productivity and relationships the impact employee turnover has on your bottom line is significant.

An Employee Benefits Program can become an integral part of your HR strategy to boost employee morale, engagement and loyalty and retain quality employees.

KPMG showed how an effective Employee Benefits Program had impact on its people strategy. In 2006, following the introduction of a dynamic Employee Benefits and Recognition program, KPMG enjoyed a 12% point jump in satisfaction with Remuneration and Benefits, in their global people survey. Fiona Heywood spoke of the impact in HR Leader Magazine "This shows our people are pleased with the market competitiveness of remuneration and the introduction of meaningful recognition and benefits programs" says Heywood. KPMG's retention rates have also improved over the last few years – another reflection of improved employee engagement.

Employees are increasingly reviewing "WIIFM' (What's in it for me), researching potential employers and their offering. With market competitive salary, training and development both taken as a given, an Employee Benefits Program provides a tangible tool to differentiate your employment offering.

So what do employees want? The challenge is to consider your employees wide ranging demographics including sex, age, income, location, culture, budgets and interests.

As part of your benefits plan, you should anticipate usage trends to move with both the seasons and economic climate. API Leisure & Lifestyle provides Employee Benefits Programs to over 160,000 employees nationally and has found that employee usage patterns shift with both client demographics and the economy. In 2009, API's clients' benefits usage was focused around increasing employee's disposable income on day to day items. This resulted in high utility in benefits on groceries, petrol, home loans and more. As the economy and employment market strengthens these benefits remain highly utilised but are also matched by luxury items such as pre-release concerts and sporting tickets and travel benefits.

An Employee Benefits Program needs to be considered and reinforced as part of your overall Employment Value Proposition. Several factors affect the success of your Employee Benefits Program including:

Integrating detailed reporting into your program is a critical factor in highlighting your return on investment to maintain senior management support and essential budget allocation of your Employee Benefits Program.

While all areas outlined above are important the success (or failure) of your Employee Benefits Program lies largely with your program communications. An effective Employee Benefits Program will have a communication mix that incorporates face to face, soft copy and hard copy communications, not just online. The hard copy elements of your program assist to make your program tangible and are a critical factor in driving program utility.

When reviewing your communication options, consider distributing a portion of your benefits collateral to home, so the entire family can benefit from your program. After all, your employee's family play an important role in influencing and supporting your employees throughout their career.

Your benefits range is extensive, servicing and communication tools are all in place, but before you hit the launch button, pause to ensure that your company receives the recognition for its investment in its people. This can be achieved by extensive employer branding on all your communication tools.

An effective Employee Benefits Program requires regular updates, communication and maintenance. This is why many organisations choose to outsource their program to a specialist Employee Benefits provider. Whichever option you choose, once you have implemented your program ensure that you receive regular detailed reporting on your programs utility. Reporting will allow you to review and showcase the return on your investment in your greatest asset, your people.

With offices Australia wide and over 90 years experience, API Leisure & Lifestyle is Australia's recognised leader in Employee Benefits Programs. For more information on how an Employee Benefits Program can assist you to gain a competitive edge, contact API Leisure & Lifestyle on 1300 653 354.