91.5% of employees believe that the way of offering pension plans is outdated
With just over a month to go until the end of this unusual year, companies need to take stock of how they have handled the difficult situation we find themselves in. Many have had to change their economic model by relying on more disruptive strategies based on digitization. In addition to putting its employees at the center as a fundamental axis to be able to recover activity. On the other hand, teleworking is here to stay and many companies have officially implemented this alternative, having to rebuild their corporate culture and provide workers with the necessary equipment to perform their work.
Companies have also changed the way they serve their employees. The human resources departments have gone through a process of digital reconversion, thus being able to offer new alternatives to ensure their well-being in the company. Employee benefit plans have been consolidated and standardized for all employees. However, remote working has prevented employees from enjoying their physical benefits; like, for example, paper tickets. There are some digital advantages that will give them the opportunity to make the most of it, whether the work is face to face or not. Although, despite this paradigm shift, there is still a long way to go. According to the 2020 Benefits Status and Trend report prepared by Cobee, the digital platform that enables flexible and fully automated benefit management for employees and businesses, only 8.5% of employees believe that current compensation of their companies are modern and technological.
In this sense, employees expect an evolution. They want a single payment method to pay for all eligible services provided by the business; full flexibility in deciding how much to spend and when to spend it; transparency of spending and savings on the products and services they actually use; and, of course, controlling the amount they save in each consumption. But are companies in tune with what their workers want?
New challenge for the commercial fabric
7 out of 10 employees believe that their company goes to great lengths to put in place pension plans and, even, they consider that this is something to be thankful for. The main problem is that 70% consider that the way of offering these advantages has not adapted to the digitalization of the moment. Companies continue to offer plans that are heavily based on traditional aspects, like food or transportation, at a time when workers want digital alternatives like online training, wellness, and more.
Adopting the change will also offer companies the opportunity to automate and reduce the administrative burden on HR departments; carry out a simple hiring process without large investments; and, also, motivation to improve staff adherence rates to plans. On the other hand, profits play a crucial role in attracting and retaining talent.
44.5% of those questioned take this type of offer into consideration before accepting a new job, and for 20.4%, it has an important influence on the choice. In this way, the company can build loyalty, save significantly over constant pay increases, and give workers what they really need. Over 67% of managers agree that it will be worth sacrificing part of their salary in exchange for greater benefits and value-added products.
Lack of knowledge about what the company offers
Despite the fact that benefits are becoming more and more common, not all employees really know what they are and how they can access them. 1 in 4 respondents who use this resource admit not really knowing what it is or how it affects them in practice.
Is it a problem of understanding or a lack of information? For 87.7% of the employees consulted, the information on the plans offered by your company is not understandable. And if the service offered is not clear, it is of no interest to the employee. The challenge falls directly on business leaders who must seek to deliver benefits that truly deliver value to workers.
At this point, companies need to stop to listen to their employees, putting them at the center of strategies focused on personalized compensation plans that bring together all of the listening findings. Positioning the employee as an administrator and decision maker of their plan, through digital platforms like Cobee, may be the most appropriate solution to improve the feeling of well-being and improve productivity.
“At Cobee, we are digital natives, which allows us to grow with companies and support them in this process of technological migration. The needs of employees have changed and for this reason, employers must try to offer them benefits that fit their daily lives, ”says Borja Aranguren, CEO and co-founder of Cobee. “Our solution allows companies to win, but also, at the same time, professionals to do so. All without the HR teams having to assume important tasks or high management costs, ”he concludes.