Thursday, 2 June 2016

Benefits that Drive Value

I met a Finance Director of a medium sized business recently. In our brief conversation, he made it clear he did not value the benefits his company provided to staff and saw them simply as an additional overhead.

If I’d had longer to talk, I’d have said more than I did. This is my follow up letter. (Not actually sent as I didn’t get his details!)

Dear Finance Director

It was good to meet you the other day.

I appreciate our conversation was a brief one, but if I’d had longer to chat, this is what I would have said….

I understand business is tough and from your point of view, additional benefits on top of salary are just overheads to be dealt with. But have you considered what you could do with those benefits at little extra cost to you?

Most employees don’t value their benefits either- mostly because employers don’t communicate them too well. I’m guessing that would include you- why communicate what you don’t value as a business manager? But the benefits all have value. The pension has matching employer contributions. That’s like free pay to your staff. Even the flexible holidays have a value, and the discounted affinity benefits have little cost to you but significant value to those who use them.

I guess I’m asking you to have another look at what you offer.  With the right communication, you can turn benefits from perceived business costs to providing a competitive edge for your company. Good benefits properly explained promote your business above and beyond your competitor who does not have those benefits- or does not bother communicating them. Small communication costs can provide a significant competitive edge, driven from staff wellbeing and a value well beyond the benefits themselves.

Benefits don’t have to be overheads. They can be your business case for future profitability.

Yours sincerely

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