August’s People Puzzler has arrived! Looking forward to reading some insightful contributions!

​@nina.johansson ​@SabbuSchreiber ​@SalC ​@HRJoy ​@HRHappiness ​@Salewa ​@wissbegierig ​@LegoMD ​@rstambolieva ​@damayantichowdhury09 ​@Naturally Mindful ​@Carly Murphy ​@Hellohere ​@Kim Stringer ​@xtine08 

I’m loving these Puzzler’s! Thanks ​@Moe for sharing those. ☀️

Just because a benefit is not being used much does not mean it’s useless. Sometimes it’s a communication problem, sometimes it’s too much hassle to sign up, and sometimes it’s simply not the right perk for the people.

I have not faced this exact issue in my current role but I have seen it before and it can be surprising how quickly a benefit can turn from a great idea into an unused budget line.

Some reasons for low uptake:

• People don’t know the benefit exists which means they never think to try it
• The sign up process is too slow or confusing which puts them off before they finish
• The benefit is not relevant or attractive which makes it easy to ignore

If I wanted to get to the bottom of it I would

• Ask employees in a short survey or casual chats if they know about the benefit, have tried it, and whether they would actually use it
• Work with the Finance to see what the numbers say about cost per employee, usage rates, and trends over time
• Check the sign up process myself to see if it feels clunky or frustrating

Before cutting the budget completely it can be worth testing one last push. That might be a clear step by step reminder on how to claim, timed for when people are most likely to act, and maybe a small reward for first time users. If that does not move the needle we can still confidently redirect the budget to something employees will genuinely use and value.

Very interesting! I love that your approach is to dig and investigate, trying to see if you can diagnose and/ or fix the issue before anything more drastic is done. Vert big fan of this.

As a follow-up, how do you think you might approach justifying this to senior leadership? Specifically, how would you present the wait-and-see approach to them as a better approach than just cutting entire benefit programs? 

If leadership is considering cutting benefits that are not being used much, one idea is to run a short trial period before making the final call. Share the current cost and usage so the gap is clear, then use the trial to see if the issue is low awareness or low interest. Keep the trial short, set clear success targets, and make it clear it will not drag on.

The advantage is that if uptake improves, the company turns an underused perk into something employees actually value. If it does not, the program can be cut with data to back the decision, which makes it easier for everyone to accept.

​@fmason I’m curious, how would you approach this issue? 

Just taking the opportunity to bother our community members one more time via tag 😄

​@nina.johansson ​@fmason ​@andra.enache ​@LegoMD ​@Hellohere ​@Carly Murphy ​@damayantichowdhury09 ​@rstambolieva ​@SalC 

I love ​@SabbuSchreiber‘s response - so comprehensive!  I personally struggle with the employee engagement element of keeping the benefits in people’s minds.  I cannot tell you how many times I get asked by colleagues how to claim on BUPA, despite me sticking up posters! 

Other areas to consider would be  

• Survey non-users specifically too as it could be life stage reasons for not using it? 
• Canvass more recent joiners as new hires tend to have different expectations and usage patterns
• Talk to managers as well as they often hear informal feedback that doesn't reach us!

There is the wider competitive element to take into consideration around talent attraction.  

Honestly, I don’t think I could add further value after ​@SabbuSchreiber’s fab response! 

Thanks, Sally

I agree that this is a time when we are all looking at what benefits we offer. the NI hike caused many employers to look at costings around this, reducing ‘er pensions but also considering other salary sacrifice type benefits that can cost less due to the NI savings.

I agree with a lot that has been said above, surveys, trials (if you can) and also awareness raising.

Sometimes changing the offering is difficult.  It is particularly important to review your demographics and to check if this may be why the uptake on benefits is off.  The traditional approach of benefits around Death & Destruction (pensions and life cover) won’t always land with younger colleagues and these benefits can be scaled back and switched up to some that are valued more highly. 

Also don't forget about the things that don't cost (actual invoiced money) which people appreciate like flexible working, free parking, feedback and personal development

Larger firms can offer the flex benefits but that isn't as easy for a smaller form.

I think the spend on benefits is often hidden, as well as take up, i also suggest looking at those insurance based products being used and how often you use the long term sickness or the life cover.  Maybe a self funded approach would be less costly in the long run.

Sally, I have to confess...many a poster has been wasted on me in the past by very considerate HR pros 😅 Also, I didn’t consider your point on talking to managers as well. It’s quite useful because, all things being equal, they probably have informal conversations with their reports on a regular enough basis to get some honest feedback. Very interesting point!

The changing demographics point you made is a strong one, ​@fmason. That sort of big-picture view of the benefits offering would, I imagine, be quite telling if there’s something amiss. On the benefits that don’t cost, I am personally finding personal development more and more important as my career progresses. Admittedly, I didn’t pay much attention to this at all in the earlier days, but in the last few years, it’s a key consideration when I’ve been getting interviewed for roles. 

​@Aaron Windrum I thought you might have some great contributions to this hypothetical scenario! 👀

All great points!

I would also recommend speaking with the benefit provider themselves. When I was reviewing the usage and impact of a wellness platform for British Rowing, the provider gave me all the data I needed to show usage, which particular benefits/products were most sought after, and trends over time which helped with building the business case for “keep or not keep”. When I spoke to the providers, I also realised that:

• The platform was severely underutilised and there were so many functions that I (and the organisation) wasn’t aware of that could promote our values and enhance the user experience, e.g., update the platform with our brand, create links in the homepage to other org benefits, give shout-outs and recognition to staff.
• They are an online resource, but also did face-to-face events (again, had no clue!) which could support the orgs back-to-office plans.
• They had an annual calendar events to help plan and communicate events throughout the year so that we could more easily align internal communication alongside the benefits.

Sometimes, organisations are paying for things without using it properly which contributes to the problem because you don’t see the true return on investment. Providers will be keen to keep your organisation as a customer, which why they are another great resource to lean on and have them provide the information you need to do a proper, well-rounded evaluation.

Fascinating point. Once again, we’re hit with the importance of data in the day-to-day role of People professionals!

Tagging some more folks to build on this conversation:

​@HRHappiness ​@Larissa Horst ​@Christine Chilton ​@Rebecca M 

This is definitely a common struggle, it may be worth looking deeper into the data with the provider/s before making any big decisions. Doing a pulse survey to gauge how employees feel about the current benefits provision while asking them what they would like to see can also help shape the direction you take. There are some insurance providers that provide life assurance along with other benefits like access to EAP and online GP appointments included which can help reduce overall cost.

There are also some flex benefit providers where employees are allocated an allowance to spend on benefits of their choice, this caters for individual and generational preferences and can reduce wasted spend on unused benefits. In addition, some providers of flex benefits can break down costs per individual scheme, meaning employers only pay for schemes that employees actually use.

Before making any decision to remove anything it’s a good idea to make sure you’re offering an alternative as what one person may not value highly another might. For example, discounted gym membership could be seen as a huge perk to one person and totally irrelevant to another, so definitely proceed with caution, as always communication is key, so coming up with alternatives and having discussions with individual employees who would be affected by any decisions to remove specific benefit provisions is likely to be beneficial.

Alternatively providing an allowance in general via payroll may also work and remove the admin of benefit schemes for both employer and employee, there are also providers of credit cards that can be given to employees where they can spend a sum of money on whatever they choose, very simple to administrate and may reduce costs, but could have tax implications for employees. 

In summary, my recommendation is to engage employees and involve them in the review and decision making process, and to ensure any decisions are guided by data and insights.  Hope that helps.

Excellent contribution, ​@Aaron Windrum! There’s a pattern I’m noticing here that benefits should be approached with a level of nuance. Particularly, it sounds like communicating with employees early and often about how they’re engaging with said benefits is one of the more crucial steps one can take. 

Really enjoying learning how this community of People professionals think throiugh these sorts of problems!