At the table
Tony Levene (chair), consumer affairs journalistSimon Burnett, research programme manager, Working Families
Patrick Watt, executive director health and wellness, Goldman Sachs
Professor Cary Cooper, organisational psychology and health, Lancaster University
Alex Perry, managing director, Bupa Wellness
Vivian Maher, benefits manager Europe, Middle East and Africa, Bank of America Merrill Lynch
Christopher Kinsella, acting chief executive, Chartered Management Institute
Sue Connelly, global health and wellbeing manager, AstraZeneca
Jack McGarry, chief executive officer, Unum UK
Charles Cotton, public policy adviser – reward, Chartered Institute of Personnel and Development
Louise Aston, workwell director, Business in the Community
Marco Forato, chief marketing officer, Unum UK
A year ago David Cameron told Europe's leading business people and thinkers that the biggest political challenge of our time is to improve society's sense of wellbeing. In the current economic climate, where employees worry about job security and everybody is being expected to deliver more with less, Cameron said he wanted to make happiness the new GDP in the UK. One of the ways in which organisations are choosing to improve workplace wellbeing is by providing additional employee benefits which go beyond the traditional offers of health or life insurance.
But what difference do these new benefits, such as childcare support, flexible working or psychological support, make? And how can employers encourage staff to think more about them?
These were just two of the questions posed to a collection of health and wellbeing experts from business, academia, management and HR who took part in a roundtable hosted by the Guardian and sponsored by income protection provider Unum. The event was held under the Chatham House rule which allows comments to be reported without attribution to encourage full and frank debate.
At the top level, there are two significant steps an organisation can take towards embedding health and wellbeing into its culture and HR strategy: putting health and wellbeing on the boardroom agenda, and getting the chief executive officer signed up. A speaker told the roundtable: "We are trying to position wellbeing as a boardroom issue; this is all about human capital management."
It is equally crucial, though, that line managers understand the importance of employee wellbeing and the contribution it makes to productivity as well as morale. As one participant acknowledged: "Line managers are critical to wellbeing. That is just a fact." Employee benefits which improve health and wellbeing were becoming more important because of the trend of employees to negotiate their own individual pay rises, the roundtable was told. One participant described employee benefits as "used to create the corporate glue within the organisation, such as staff pensions or the staff Christmas party".
But not all benefits have to be expensive. The cost impact of offering employees the right to request flexible working can be minimal, it was pointed out.
A duty of care
Some employee benefits, especially flexible working for fathers, also benefit the employers "as men feel that the company is committed to them". But there is little evidence that this benefit, which female employees are quick to take, is being sought out by fathers across the board. The roundtable was told: "They feel they are [seen as] the weak link. But if senior managers work flexibly then people will feel more comfortable doing it."
Another popular benefit is the option of completing a part-time MBA, a
participant said. But this and other training and development perks are disappearing as organisations look to save money, the speaker said. The cost of company health insurance schemes is also becoming more expensive, according to the roundtable. Premiums are rising because more claims are being made as GPs are now more likely to ask a patient if they are part of a scheme in order to keep pressure off NHS budgets, a speaker claimed. As a result, organisations are investing in preventative health measures instead to stop staff becoming ill in the first place, the roundtable was told.
While small and medium-size businesses are less likely to offer health insurance, they do sometimes provide income protection and life insurance. "They feel a duty of care," a speaker told the roundtable. Whatever package of employee
benefits are on offer, they can help reduce absenteeism, it was suggested. There is also evidence that long-term disability costs go down the more investment companies make in staff health and wellbeing, it was claimed.
The roundtable heard that measuring the direct effect of employee benefits was difficult, but it was agreed they can play a useful role in recruitment and retention. In some sectors, especially finance, certain benefit packages are expected and people will look elsewhere if they are not given what they expect. "If you don't give a benefit that another company has, you will soon hear about it." On the other hand a pension, for example, may not be the reason somebody joins an organisation but it can be the reason they stay.
A speaker said: "Would somebody join an organisation because of the employee benefits? Certainly not. But if you take benefits away that is when people become more vocal. Benefits provide that marginal reason why somebody would leave or join but it's not the main driver."
Making lifestyle choices
Today's employees are also on the lookout for what are termed "lifestyle" benefits, such as help with childcare or holidays, rather than the more traditional benefits offered in the past. A speaker said: "People working in our sector are looking for a lifestyle, and traditional benefits don't support that." The participant referred to Google, which is an employer of choice for those seeking a positive (even fun) working environment thanks to workplace facilities which include a slide which leads into the staff dining hall: "It's about the lifestyle that your business can offer."
The roundtable also discussed how informing employees about their benefits and ensuring they are taken up when needed can be a problem for employers. It is particularly difficult as many of the benefits are linked to ill health and even death. At the same time, employees are looking for benefits which have immediate results, rather than a pension which brings reward in 20 or 30 years' time.
One organisation, the roundtable was told, relies on its company wellness and wellbeing board to get the message across to staff about the benefits on offer and their advantages. The board also produces a quarterly report. Senior managers leading by example can also have a significant impact on employee benefit engagement. "If you get a senior person who sits on the board who says 'the gym is great, get down here' it will have much more impact than a HR email … which will get deleted." Certain benefits also appeal at different stages of career or life. A new graduate employee, for example, will be drawn towards a benefit which helps with managing finances.
Some benefits, such as those which provide psychological and mental health support, can be especially difficult to sell because of stigma. In addition, while organisations have a duty of care in maintaining their employees' health and wellbeing, mental ill health triggered by work is difficult to prove. In cases where employers have been found to be at fault, it can be costly – the average compensation paid is about £250,000, the roundtable was told. One participant said in their organisation mental breakdown was given the status of "a slow accident" if it is perceived to be something which was aggravated by the workplace.
"It's about getting role models so that senior people can say 'I've gone and got help; it's OK.' One in four people suffer from mental health issues in their lifetime; we need to build organisations where there is a licence to talk about these things." People who need mental health support are more likely to seek it out if the language is right. "If you talk about mental health people will run a mile, but if you talk about a happy workforce they get it. It's about creating the vocabulary of engagement in the workforce."
In future, employee benefits will have to become more flexible and innovative to meet different demands like rising student debt and government changes to the retirement age. One speaker said: "We can't offer one size fits all."
Another added: "I think innovation has to be about mix and match in the course of your career – it's not necessarily that you bring more benefits into the equation but it's more about how you move them around." One participant suggested getting rid of bonuses in the banking sector and using the money instead to help graduate employees with their student debt. "Bonuses are an employee benefit but it is disproportionate. Maybe we should be reconsidering them."
Creating a culture which allows men to opt for flexible working is also needed in the future because it makes economic sense. For every pound spent on providing flexible working, employers get a £3.50 return on their investment because of increased productivity, the roundtable was told.
Annual company reports, it was suggested, should contain details about what is being done to address employee health and wellbeing and the benefits available. One of the biggest challenges, it was felt, was how to bring smaller businesses on board. One option, according to one speaker, might be for larger companies to support smaller organisations as part of their corporate social responsibility agenda. Government intervention was another possibility but ran the risk of creating more bureaucracy. "Whenever legislation is involved there is always an associated cost which makes it burdensome for small companies. Educating people about the value of things would be better."
The Future of HR summit takes place on 6 December. Visit guardian.co.uk/future-hr for more details and to register.
No comments :
Post a Comment