Using Benefits as a Differentiator
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This document discusses using benefits as a differentiator for attracting and retaining talent. It notes that benefits supplement cash compensation and protect employees from financial risks. Benefits can attract and retain talent by branding the organization internally and externally and building a loyal workforce. However, benefits must be carefully designed and targeted to have high perceived value by employees in order to be an effective differentiator, as one size does not fit all. The document provides examples of benefits the author found impressive and differentiating over his career.
Using Benefits as a Differentiator
- 1. Using Benefits as a Differentiator NHRDN SUMMIT Ravi C Dasgupta Vice President - Group HR Biocon Limited February 15, 2013
- 2. Benefits – An Element of Total Rewards Benefits is used by employers to supplement cash compensation. Benefits programs are designed to protect the employee and his/her family from financial risks. Attract and Retain Talent Attract Branding– Internal & Retain External Build Loyal Workforce Great Differential Factor in times of Budget Constraints
- 3. Employment Value Proposition (EVP) ATTRIBUTES THAT DETERMINE EVP • Base Salary • Incentives Compen • Cash rewards -sation • Brand • Health • Culture • Retirement Organiz- Benefits • Environment • Paid Time Off ation • Growth • Perquisites EVP • Belongingness • Advancement • Variety • Learning & Work • Challenge Development Career • Meaningfulness Content • Meaningfulness • Satisfaction • Employment Security
- 4. Employment Value Proposition (EVP) VALUE OF TOTAL REWARDS INVESTMENTS Employees are more concerned with the employers’ benefits offerings now than they were in the heart of 2009’s global economic turmoil. Source: © 2012The Corporate Executive Board Company. All Rights Reserved. CLC2620212PRO
- 5. The Problem with Benefits Perceived value of benefits differ based on employee age, income bracket, & family circumstances. One size almost never fits all. Once introduced, they are hard to remove. High cost but undervalued benefits can sometimes derail hiring efforts. Benefit costs can spiral out of control and endanger the health of the company. This makes many companies prefer offering cash to benefits. 5
- 6. Some Benefits I Enjoyed ! Company leased housing • From yrs 4 to 15 of my career Company provided car • From yrs 8 to 23 of my career Housing loan interest subsidy • Allergan Family Holiday plan • SmithKline Beecham & Biocon Flexi Allowance/ Car Lease plan • Biocon Flexible work timings • Biocon Fully furnished company flat • Goodlass Nerolac Weekends & holidays excluded from EL • Biocon, Allergan, SB Children’s Education • Biocon Annual Team outing • Biocon 6
- 7. Some Benefits I Rarely/Never Used Medical Insurance • Used only when my 2 kids were born • Goodlass Nerolac, Crompton & Relocation Benefits Greaves, SB Gym • Biocon Sick Leave • All the companies I worked in Accident Insurance • All the companies I worked in Crèche • Biocon House Deposit advance • Biocon Leave encashment (except at • All the companies I worked in exit) Higher Education Support • Biocon 7
- 8. When can Benefits be a Differentiator? High perceived value to employees. Reflects company values such as concern for people. Being the only company (or at least one in few) that offer it. Significant enough to attract or retain. 8
- 9. Some Differentiator Benefits that impressed me during my career Employee Cooperative Credit • Crompton Greaves Society Fully Maintained Company Car • Smithkline Beecham with 250 lts. of petrol a month • Smithkline Beecham & Family Holiday plan Biocon Annual Health Checkup • Biocon & SB GTL in lieu of EDLI with critical • Allergan illness rider Bereavement & Adoption leave • Biocon Children’s Education • Biocon 9
- 10. Some Suggestions for Creating Differentiating Benefits in your organization Unless its an “industry given”, avoid playing the “me too” game. Have lesser number of benefits, but offering higher value. If you have the IT and other resources to support it, consider a ‘basket of benefits to chose from’ approach. Be aware of employee demographics and how they impact ‘perceived value’ of benefits. Do some modeling of ‘future demographics’ in 5 & 10 years before introducing a new benefit. 10
- 11. THANK YOU Ravi C Dasgupta Vice President - Group HR Biocon Limited 6th Dec 2012 http://in.linkedin.com/in/ravidasgupta
Editor's Notes
- #8: Adoption leave is as follows:If the age of the child being adopted is less than 3 years on the date of adoption the employee is entitled to 8 weeks leave with full pay. (Conveyance allowance will not be paid during adoption leave).If the age of the child being adopted is more than 3 years on the date of adoption the employee is entitled to 1 week leave with full pay. (Conveyance allowance will not be paid during adoption leave). Bereavement Leave (BL):An employee who has no leave to his/her credit is eligible for 3 calendar days of leave in the unforeseen event of the demise of his/her immediate family member. Immediate family member includes spouse, child, parents and parents-in-law ONLY.Employees with leave to their credit would use EL or CL as the case may be.