This image depicts four coworkers working together at the office. They are happy, engaged and … [+]
In today’s diverse workforce, recognizing and accommodating employees’ unique needs and preferences is crucial for any business. Pursuing people growth is a complex venture to get right, and without the right people, motivated and engaged, it is difficult to reach any business goal. When people accept or reject job offers, they consider salary, culture, opportunity and many other factors. One of these factors is the benefits package on offer.
Every person within any business has different life circumstances, and this is reflected in their benefits requirements. We know that certain benefits will matter to most staff, and most benefits packages are based on a system of majority demand or legal mandates. This majority approach leaves gaps in fair support and leads to further disadvantages for the minority. Many benefits are required by law, such as certain health care prohibitions or specific 401ks and retirement plans depending on company size. Others largely revolve around time off, flexible working, retirement, health, well-being or work-life balance.
A recent Mercer report called, ‘2023 Health on Demand’ shared that “over three-quarters (78%) of employees who believe their employers care about their health and well-being also say they are thriving.” Their research even went as far as to say that “one in three employees would forgo a pay raise for additional well-being benefits for themselves or their families.” In a Korn Ferry
KFY
Stability and Security
In 2022, businesses rewarded employees who left with pay raises, while those who stayed did not receive any substantial pay raises and were instead subjected to what is called ‘loyalty taxes’. In a recent Bloomberg publication called “Top Employee Benefits Workers Want Most in 2023,” the findings are the reverse. They found that the focus is now on ‘job security’, which is being measured by “gauging the strength of an employer’s leadership, business prospects and financial resiliency.” This can be measured by a number of things, one of which is the benefits package themselves. The brokerage, Newfront shared information in the article, ‘The Top 10 Employee Benefits Trends for 2023’ and within it cited ‘cost savings’ and stability in the guise of “support tools to give employees confidence picking compatible plans for their health savings account (HSA), concierge tools for streamlining and reducing healthcare spend, and disease management plans, such as point solutions for cancer treatment.” Employees should have the freedom to choose the benefits that align with their needs and priorities. By offering a wide range of choices, fintechs can empower employees to select the benefits that matter most to them, leading to increased satisfaction and engagement. This personalized approach fosters a sense of ownership and demonstrates that the organization cares about each employee’s well-being.
Needs analysis
By understanding that different individuals require varying levels of support, fintechs can offer a range of benefits to accommodate diverse circumstances. For example, providing vision care benefits acknowledges that some employees will require glasses at some point. Similarly, offering enhanced 401ks with matching or pension plans demonstrates an organization’s commitment to providing a secure financial future for all employees. Interestingly, in the UK, 74% of the population needs some eye corrective support, according to Statista.com, compared to 66% across America. Around 17% of people are affected by hearing loss in the UK, making it “the second most common disability in the UK” as the ‘British Academy of Audiology’ reported. ‘The National Institute on Deafness and Other Communication Disorders’ reports that this statistic is closer to 15% in America.
After conducting research with Harrington Starr recruitment agency and gathering data from 50 financial technology institutions, fintech scale-ups, and disruptors worldwide, it was found that all of them had some form of eye health commitment in their benefits package. This was in contrast to only two of them having direct support for audiological health. A third offered childcare benefits, and nearly every one offered a dental plan. The percentage of people needing eye support and those finding childcare benefits useful in their lifetime is not fairly reflected in these current policies. The potential gaps are endless when you consider the needs of every single employee rather than the majority of your staff.
The Whole Person
By offering a range of benefits, individual needs can be addressed, leading to enhanced employee satisfaction, engagement, and overall well-being. A Gartner
IT
While providing comprehensive benefits may involve an investment, the long-term advantages often outweigh the costs. Fintechs should consider the potential savings associated with benefits. For instance, preventative healthcare benefits can reduce healthcare costs by identifying and addressing issues early on, ultimately saving money in the long run. Moreover, the cost of not providing benefits should be considered, as it can lead to decreased employee morale, productivity, and retention, resulting in higher turnover costs.
Choices
Exploring a variety of benefit choices is often understanding these benefits and their impact on recruitment, cost savings, employee retention, and the holistic support of your workforce. Mckinsey offers interesting insights into this debate offering a solution in the form of “building an integrated benefits experience.” In their recent publication, ‘US workplace benefits: Connecting Health, Wealth, and Wellness’, they describe a ‘marketplace’ where a person “could create a rich digital-shopping experience” of options. Rather than building systems to benefit and serve the majority, this option could look to serve the minority as well. In a world of work where every 1% of productivity and improvement is scrutinized, there is much to take from this approach. Deloitte agrees, in their 2022 ‘Mental Health Report’, it was noted that “more targeted interventions that understand and fit the specific needs of different groups and individuals bring better outcomes than reactive approaches.”
These additional offerings can significantly contribute to employee satisfaction and well-being. Perks such as wellness programs, flexible working arrangements, and employee recognition initiatives create a positive work environment that promotes work-life balance and fosters employee loyalty. Taking this holistic approach to employee well-being by embracing the minority needs within a benefits package is crucial for organizations aiming to attract and retain top talent. By acknowledging the diverse needs of individuals, individual satisfaction is enhanced and drives overall business success by fostering a motivated and engaged workforce.
