MODIFYING THE BENEFITS PACKAGE

The steps required to modify or redesign the benefits package are as follows:

1.     Analyse trends in the market place using survey and other data for the provision of benefits, and assess what is regarded as the best practice in each area.

2.     Analyse trends in the recruitment and retention of staff to assess, in the light of the market survey, any areas where it is believed that improvements in the benefits package and/or the way it is applied might improve the ability of the organization to attract and retain staff.

3.     Assess in discussions with management what it wants the employee benefits, strategies and policies of the organization to achieve and the extent to which the present arrangements satisfy these objectives.

4.     Consult employees on their needs (consider using an attitude survey for this purpose).

5.     Obtain the views of relevant trade unions or staff associations.

6.     Assess the tax implications of current and projected government policies.

7.     In the light of these processes of analysis and consultation:

a.     conduct an overall review of employee benefits strategies under the headings listed above;

b.    review each of the main policy areas as set out in the key dimensions part of this section;

c.     decide, on the basis of these reviews, any changes required to strategies and policies and the steps required to get these changes formulated, agreed and introduced.

8.     In the light of revised strategies and policies and by reference to the analytical and consultative steps taken earlier (stages 1 to 5):

a.     subject each benefit to careful scrutiny to determine any changes required to content or application;

b.    examine the costs of each benefit and assess whether it is providing value for money (this involves comparing the cost of providing and administering the benefit with an assessment of the extent to which it is meeting the needs of the company and its employees - clearly low cost to employer/high value to employee items will be the most attractive);

c.     decide if any additional items should be included in the package and assess their likely contributions to meeting organizational and individual needs and their overall cost effectiveness;

d.    decide if any items should be eliminated on cost-effectiveness grounds - but beware of taking away traditional benefits if the timing is poor and the change is the wrong symbolic act;

e.     plan the steps required to make the changes, including the design of the benefit, consultation with staff and methods of communicating information on the changes to all those affected including tax implications).

9.     Introduce the changes, ensuring that the supporting administrative systems are properly installed and that the communication programme takes place as planned.