Robust benefits programmes are a key differentiator for businesses looking to operate in a competitive talent market.
And while SMEs may not have access to the same budgets of large corporate businesses, they can remain competitive by making thoughtful use of resources available to them. Additional funding does not reliably guarantee improved benefits uptake.
Instead, strategic implementation of the correct tools, tracking, communication, and gathering feedback can help create a more consistent approach to benefits – enabling you to ‘get more bang for your buck’.
The utilisation ‘black hole’
Despite a growing emphasis on wellbeing, many SMEs still struggle to turn good intentions into tangible outcomes. As revealed in our SME Benefits Report (opens a new window), leaders typically assume their benefits are well used. However, a considerable 39% admit that some benefits go ignored – and over a third cite low awareness as the main reason.
A perceived lack of relevance, and the feeling that certain benefits are designed for someone else – such as parents or older staff – also discourage employees from making use of what’s on offer. This often reflects the overbearing influence of personal values (opens a new window) and experience on leaders’ decision-making.
Worryingly, less than half (45%) of leaders develop benefits strategies based on employee feedback, and nearly a quarter (24%) fail to track benefits usage at all, missing the chance to learn what’s working and where to improve. All this can cause SMEs to fall into a utilisation ‘black hole’ – in which benefits exist in theory, but fail to translate into real impact.
Delivering benefits with impact
SME decision-makers invest significant resources into their benefit packages. But unless there is significant buy-in among employees, benefits will deliver little return on investment. It can also leave organisations vulnerable to rivals who better align benefits with employee needs.
But success doesn’t have to mean bigger budgets. Clarity, confidence, and communication – not business size – are the real differentiators in whether benefits succeed.
To ensure benefits achieve their intended purpose, SME leaders should consider enhancing their benefits programme in the following three areas:
Tracking benefits uptake and employee satisfaction
Gathering employee feedback on benefits should be an integral part of your EVP strategy. If leaders lose sight of what employees value, it becomes harder to adapt offerings or justify spend. Collecting insights from employees enables employers to remain responsive to shifting employee expectations and ensures your programme retains its relevance and usefulness.Making communication a cornerstone of your benefits strategy
Poor and inconsistent communication is a recurring barrier to meaningful employee participation and engagement with benefits. Clear, consistent communication is essential to the success of any benefits programme (opens a new window) as the choice of wording, timing, and positioning can all significantly impact benefits uptake. SMEs should seek to tailor communication for their organisation as there’s no one-size-fits-all solution. When communication is embedded at the core of a rewards strategy, it creates a more relevant and personalised experience for each individual.Enhancing the employee benefit experience
Almost a third (30%) of SME leaders cited ‘complexity of access’ as a barrier to benefit uptake among their employees. Offering flexible benefits is an option for SME leaders considering how to foster employee engagement across diverse needs and demographics. To help drive engagement with flexible benefits, a robust platform can help facilitate greater choice and control for employees over their compensation packages. However, the success of this will hinge on a positive user experience (UX) (opens a new window). A flexible benefit platform with superior UX will: streamline processes, make discovering and accessing benefits intuitive, consolidate services to a single source, and establish clear and simple communication throughout.
Improving the quality of decisions
Whether forming or reconstructing benefits programmes, it is critical that business leaders are equipped with relevant and useful information. Typically, SMEs are hindered by conflicting advice, lack of time, and reactive measures shaped by immediate pressures. With most decisions being made internally in siloed teams, strategies can lack consistency.
When updating benefits strategies, SMEs should aim to seek out guidance, measure impact, and ensure that benefits aren’t just offered, but encouraged. If successful, leaders can build benefit programmes that strengthen the employee-employer relationship and foster long-term business success.
To access the complete findings from our SME Benefits Report, click here (opens a new window).
For more information, reach out to a member of our team or visit our Workplace Benefits for SMEs (opens a new window) page.
