Can Benefits be the secret weapon in the War for Talent?

“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” – Simon Sinek

Simon Sinek is quoted widely on the topic of Purpose, yet his words here are equally powerful as we discuss Benefits. After all, in a highly integrated world, where experiences are hyper-personalized, all of these do intersect. So, the bigger question we ask ourselves is, “Can Benefits win us the War for Talent?”

What matters to our people?

The concept of Benefits is not new, nor have we been unaware of its importance in the rewards framework. But there is a need, and the trend shows we are moving in this direction, to make Benefits more relevant and personalized. Benefits, as the name suggests, traditionally are perks and incentives doled out to employees. Some are statutory, for instance, social security like PF and gratuity in India, or leaves – generally in line with the local regulations. These are the norm. Then there are add-ons like Insurance where we can differentiate substantially. Today, we widely cover the employee and their immediate family. As we push the boundaries, we are starting to acknowledge the social norms to include extended family like parents and in-laws, live-in and same-sex partners, and now we are contemplating cover for pets. The evolution of Benefits simply mirrors the needs of our people.

This brings us to a unique challenge: how do we customize to such diverse needs yet have a structured program?The answer lies in building a flexible program and giving employees the choice to customize based on their needs.

The key trends in this direction that I observe are:

• People who matter, matter: We have long answered very directly to the ever-pervasive question of, ‘what is in it for me?’. Pandemic has made us acutely aware of our ecosystems. So, in the coming days, we will see more benefits to families while we extend the definition of the very word. So, the focus is expanding from ‘you’ to things that matter to you – your family, community, ecosystem, and Purpose.
• A focus on long-term wealth creation: financial wellness gains traction as we see an increase in financial literacy. While salary continues to be the primary monetary compensation and the most obvious transaction between an employee and an employer – benefits can help plan better, grow the assets or open new avenues for it.
• Flexibility and choice: We have a diverse workforce; their needs are bound to be different. So, how do we best cater to them? While there will be no ideal situation, the idea is to let people choose. The future will see us creating a bouquet of services and letting people choose as per their needs. Like OTT, revolutionized the content consumption pattern, to reimagine benefits, we will have to democratize the process and share the decision making.
• The Purpose is the origin story: As I mentioned earlier, Benefits are a shared journey – an intense experience. If it brings you closer to your Purpose, it will be meaningful. For instance, I am passionate about teaching and mentoring in my case. Access to professional bodies that let me do the same would be far dearer than perhaps a cash dole out.
• What you stand for: While we put so much thought into what benefits look like in the future, it is important to reflect its culture and ethos. Collective experiences and vision are compelling. So if you believe in Sustainability as an organization, then we need to have more green programs. If we believe in Diversity, the Benefits cannot be singular in approach.
• Tapping in a vendor ecosystem: I have often written that in an age of micro-skills and micro-economy, we have pockets of specialization, and these have to be brought together to curate unique experiences. It is only obvious that we tap into experts and bring in the best possibilities to create a cohesive experience. What we own is the vision and, the same holds good for the Benefits outlook.

To conclude, as organizations outdo each other to attract the best Talent, Benefits will be a game-changer. After all, it is not one grand gesture but a million small ones which cement successful relationships. Benefits that care for people and cater to what matters to them are as powerful as monetary compensation. To this effect, my belief stands that you cannot out-pay your competition; you can out-play them.