Employee Benefits - Paid or UnPaid

[MyCarBudget]

Having been involved in the launch of employee benefit programs across tens of employers over the past 5 years, a key learning I have made is that most programs don't work unless the employer and HR have a buy-in into the program. In many cases they need to pay for the program (or the fees) on behalf of employees.

When the investment is made directly by the HR team, then there is more of a commitment to promote the service, encourage staff to try it and this results in a much better experience for all involved. More participating staff means more staff feeling the benefits and a better ROI for the business.

What has your experience been?

[Hrins]

I think the days of paying for employee benefits is going to continue to decline into extinction. However, I do think that there is much more "buy-in" from employees when there are choices pertaining to plans, specifically health care plans. This allows them to not fit a model and select what is best for themselves and their families. With that said, it is also easy for them to pay for it via a payroll deduction.

[Qld IR Consultant]

It's been my experience that these programs achieve little, and give HR a big headache in terms of managing it. All the companies, and negotiations, I have been in over the years have phased out such programs and concentrated in gainsharing or performance bonus schemes. In those instances a marked gain in productivity can be displayed for little impact on HR in terms of managing the process to end.

[Hrins]

As I network more, I have seen that this seems to be the case for compensation. Performance based incentives are a focus of human resource management. It allows for less gray area pertaining to what the employees can expect to make. I have to say that I think this is a very useful technique. It sets the company up for better results, and creates a win win situation for both the employee and company.