Optimise. Achieving the perfect reward and benefits programme

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1 Is your reward and benefits strategy fit for purpose? Over the last few years the turbulent UK economy, coupled with a constant stream of legislation and regulation when it comes to pensions, reward and benefits, has put an enormous amount of pressure on HR and Reward teams. This has resulted in many reward and benefits programmes stagnating because businesses haven t had the time to focus on them. Your competitors are starting to focus... so should you! Optimise Achieving the perfect reward and benefits programme Renewing reward and benefit packages without reviewing them ticking the box means that many businesses are not getting an effective return on their investment. It s time to take a fresh look at your reward and benefits programme, and ensure it s still suitable for you and your employees. Most employee benefits consultancies claim to offer a package of reward and benefits that s specifically tailored to fit the needs of your business, but this is rarely achieved because they do not know enough about you, your people or your goals. This is where we re different. To ensure that the reward and benefits package you provide for your employees is right, both for them and your business, we have developed Optimise a revolutionary approach to auditing your reward and benefits package and for setting strategy. Optimise focuses on employee demographic analytics, effective competitive benchmarking and measuring the return on investment over a fixed period, all encompassed by good governance. Working with our experienced team of employee benefits consultants will help you to develop a reward and benefits package that perfectly corresponds with your organisational goals, your employees motivations, and your need to be competitive. We will work with you to provide a reward and benefits programme that s fit for your business and can be easily understood, implemented, and measured. We will be with you, in partnership, measuring delivery of our joint goals over a defined period. Putting our recommendation to the test. To find out more, please contact your Capita consultant or visit Employee CapitaEmployeeBenefits CapitaEB B033 Capita Employee Benefits is a trading name of Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited. Part of Capita plc. Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited are registered in England & Wales No: and respectively. Registered Office: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.

2 Strategic Audit and Review Too many organisations fail to realise any return on investment in their benefits programme because it does not align to what they are trying to achieve. We believe that the benefits you provide for your people should help you achieve your corporate strategy, and work to help your employees achieve their personal goals. Change is not a destination just as hope is not a strategy. Rudy Giuliani Using the following 4 step approach we can work together to build a benefit and reward strategy that delivers to all stakeholders: 1 Inventory we will work with your HR team to run an inventory of your existing benefits package, to give you clarity on design and cost information. 2 Analysis using our market-leading demographics analysis and competitive benchmarking services we will give you deep insight into (i) your people, what motivates them, and what benefits they value and (ii) real-time industry and market benefit trends. 3 Workshop at a face-to-face workshop we will play back our analysis to you, gather your thoughts and own insight, and collaborate with you to inform strategy design. 4 Strategy Report using the output of stages 1-3 we will provide you with a comprehensive report that sets out our findings, deliver a benefits strategy and implementation roadmap that is realistic, relevant, and measureable. ID Number Activity Timelines and Expectations Workplace benefits Owner 1 Provide employee data X X 2 Finalise benefits data X X 3 Review data & feedback to Company X 4 Analyse data X X 5 Review analysis & produce workshop pack X 6 Workshop X X 7 Conduct any further analysis required form workshop The top issues shaping benefit provision included: 1 8 Produce final strategy report X X 10 It s time to stop throwing money at benefits that don t deliver, and start seeing the bigger picture. Your benefits programme is a strategic business investment that can really make a difference treat it with respect, and partner with us to help your benefits programme reach its full potential. Desire to improve 74% 44% employee engagement Aligning benefits strategy with business strategy

3 Benchmarking Market surveys play a big part in the creation of reward and benefits programmes, but usually these are too broad and too out of date to be worthwhile sources of guidance. Most of these surveys rely on what people say, not on what people actually do. 68% of employees say they would be more likely to take a job if the employer offered good employee benefits. Our benchmarking solution provides effective employee benefits market analysis. This will help to ensure that the reward and benefits programme you offer is right, and it will enable you to leverage up-to-date market analysis understanding current trends in employee benefits, maintaining competitiveness and optimising benefit costs against the value to employees. Save costs and help maximise satisfaction and retention by more accurately fulfilling employee needs with benefit offerings Better demonstrate the effectiveness of reward and benefits strategy and make improvements This isn t an off-the-shelf product; it s a truly bespoke market analytics service that can be tuned to target particular sectors, particular benefits or even particular demographics across the market. It will let you leverage market analytics in a much more powerful, sophisticated and cost-effective way than previously possible. This benchmarking service combines multiple data assets from our market-leading employee benefits portal, Orbit, and uses advanced analytical tools to provide real time, targeted and accurate analysis of what is currently happening in the market. We assess actual benefit choices made by employees and offerings by employers combined with surveys to build a picture of current trends and competitive challenges. Better understand what benefit choices are currently being made in the market by employees and employers Understand the competitive market not just in terms of your sector but also the other competitors for your employees skills Target specific demographics or benefits for analysis Analysis on high-cost benefits assess current offered levels and take up in the market 55 yrs 50yrs 45yrs 40yrs 35yrs 30yrs Average Age and Salary of Sample Companies (Company Payroll Areas in Red) Optimise costs by only offering the level of benefits you need to offer, based on market-wide analysis of employee choices Base and justify strategic benefits decisions on current data not an out of date survey 25yrs Progress is a nice word. But change is its motivator. And change has its enemies. Robert Kennedy

4 Demographics Many employers create reward and benefits programmes based solely on market or sector trends. But in many cases your particular workforce may not be engaged by these benefits, and the cost of the implementation may not provide a good return on investment for your organisation. Attracting good employees is hard work and becoming increasingly more important. It s essential to offer the right reward and benefits for your workforce. It s time to relate your reward and benefits offering to your employees in a much more cost effective way than previously possible: Better understand who your employees are and what influences their benefit choices Identify groups of employees that warrant special attention Save money and optimise return on investment with better targeted benefits Help maximise satisfaction and retention by better fulfilling employee needs through targeting benefit offerings Formulate and align benefit strategy to meaningful segments of employees and make improvements to benefits Target benefits-related messaging to reach specific employee groups Using a combination of data assets and the latest in demographic analytics, we enable you to know your employees to a depth that will transform your decision making. An investment in knowledge pays the best interest. Benjamin Franklin Analytics Provides the what do people do? Research Provides the what do people want = Actual Return on investment Achieving your goals and engaging more effectively with your employees 70.6% of employees say they are more likely to stay with an employer that offered good employee benefits. Generation X 50% 48% 50% 51% 48% 48% 50% 59% 44% 47% 74% 41% 58% 50% Generation Y 15% 13% 11% 16% 11% 11% 10% 16% 11% 20% 8% 11% 19% 13% Generation Z 1% 1% 0% 0% 0% 0% 0% 1% War Generation 1% 0% 0% 0% 0% Unknown -1 27% 32% 45% 61% 7% 9% 27% 3% 1% 10% 21% 31% Single 0 40% 41% 33% 21% 43% 64% 47% 47% 66% 40% 42% 44% 37% 39% Married 1 34% 27% 22% 17% 57% 29% 44% 26% 30% 59% 48% 56% 42% 30% Up to % 4% 2% 2% 1% 1% 2% 0% 3% 1% 20% 2% 1% 3% 10,000 to 27,000 27,000 to 42,000 42,000 to 75,000 75,000 to 150,000 61% 73% 95% 29% 39% 81% 91% 87% 89% 18% 51% 29% 17% 70% 25% 23% 2% 53% 33% 14% 5% 10% 4% 32% 26% 53% 16% 20% 10% 0% 14% 21% 4% 1% 3% 3% 41% 2% 14% 41% 6% 1% 0% 2% 4% 0% 0% 6% 1% 2% 13% 1% Over 150,000 0% 1% 0% Payroll Group 1 Payroll Group 2 Payroll Group 3 Payroll Group 4 Payroll Group 5 Payroll Group 6 Payroll Group 7 Payroll Group 8 Payroll Group 9 Payroll Group 10 Payroll Group 11 Payroll Group 12 Payroll Group 13 All Payroll Groups

5 Governance Many companies use certain triggers points to review their reward strategy, but then let it fall away without regularly revisiting the objectives set and measuring performance. This includes measuring their business, their suppliers and their reward and benefit frameworks. Where this happens there is a risk that any action taken on a reward scheme is reactive, when your stakeholders expect you to be proactive. However beautiful the strategy you should occasionally look at the results. Winston Churchill If you ve taken the time, effort and money to understand your workforce, benchmark against your competitors and set 1, 3 or 5 year objectives for your reward strategy to ensure return on investment for your business, why wouldn t you continually monitor this to ensure it remains fit for purpose and relevant to the employees you are looking to recruit and retain? Our Governance tool will allow you to continuously and effectively measure your reward and benefits scheme across eight key areas shown below. We don t just review performance and set a list of objectives to review every six months. We will help you to plan for the year ahead, align key actions in your specific strategic roadmap to that of the business, plot where particular events might impact on the employer and your employees, and set out a plan to achieve the best results, while proving and improving return on investment. Better alignment and monitoring of objectives to business need Prove and improve return on investment Know what s next and what your priorities are Drive and anticipate change Monitor and manage your suppliers, hold them to account This isn t Governance as we ve known it in the past. This is something that drives change in your business, delivers success and helps you stay one step ahead of the game. Charges Options Provider Performance Take up Outcomes Communications Administration/ Procedural When the facts change, I change my mind. What do you do? JM Keynes Legal & Regulatory

6 Strategic Audit and Review Benchmarking Demographics Governance Year 1 Year 2 Year 3 Year 4 Year 5