Reward and Benefit programmes in this post-recession world suffer from stratification – layer after layer building up over time until the true origin of your approach and policies is lost.

Lack of funds, reduction in demand and other business priorities have all conspired to leave some employee propositions in need of wholesale review.

Surveys are a good starting point but they only tell you what people say or think they would do – not what people actually decide to do when given the choice.

This is where we are different. Thanks to Orbit, our own benefits technology, we hold over a decade of actual decisions.

Over 450,000 people use Orbit every year, meaning we have data on over 10 million decisions a year.

As a result we know what people do when faced with choice and we use this, combined with what they say they

will do, to give you true insight into the most effective programme design.

Optimise is an approach that provides you with a data led, evidence proven, strategic design. It removes the old habit of adding rewards or benefits for the sake of simply broadening an offering – after all refreshment rarely comes in the form of more of the same.

This approach has helped our clients measurably increase employee engagement and identify over £17 million of direct annual savings.

Can you afford to be left behind?

The data led design revolution is here.

“…strong focus on understanding clients’ experience, benefits structure and segmentation through the

use of data analytics… clear and transparent client engagement, pricing, communication and smart use of technology made Capita the judges number one choice

in this most prestigious of categories.”

Optimise

Delivering strategic excellence

Strategic Audit and Review

Your reward and benefits programme is part of the fabric of your organisation. It is vital that your people value what you give them, that you understand the risks involved in the effective functioning of your programme and that it is optimised for maximum return on investment.

With large sums being spent on reward and benefits and with your most important asset – your employees – at stake, it is imperative that you can prove and improve return on investment.

Partnering with Capita Employee Benefits on a Strategic Audit and Review of your reward and benefits programme will give you the answers your business needs. We’ll help you develop a long-term vision and provide a plan for delivering real value to your business.

We work with you using a tried and trusted four step approach:

Inventory

We will work with your HR team to perform an inventory of your existing reward and benefits package, give you clarity on design and cost information, and highlight any technical issues.

Analysis

Using our market-leading Demographic and Benchmarking Solution we will give you deep insight into (i) your people, what motivates them, and what benefits they value and (ii) real-time industry and market benefit trends.

Workshop

At a face-to-face workshop we will play back our analysis to you, gather your thoughts and your own insight, and collaborate with you to inform strategy design.

Strategy Report

Using the output of steps 1-3 we will provide you with a comprehensive report that sets out our findings. We will deliver a benefits strategy and an implementation roadmap that is realistic, relevant, and measureable.

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2

3

4

We partnered with a large industrial conglomerate to identify £3m in cost savings, achieved through a transformation in how their benefits are delivered and communicated.

£3msaved

For a multinational IT firm of 1,700 employees in the UK, we identified efficiencies of £5m over three years through a combination of benefits restructuring, redesign and placement.

£5msaved

Selected Benefits – want it vs take it(from Capita Employee Insight Report and Orbit)

Say they want benefit when asked

Take benefit when offered but not subsidised

Critical IllnessHealth Screen Dental Private Health Life

60%

50%

40%

30%

20%

10%

0%

Engagement Strategy

Year in, year out, industry surveys ask questions on the theme of: “what could you have done better to improve your pension and benefit arrangements”. Year in, year out, the resounding answer from employers is – improved engagement.

A well developed and delivered Engagement Strategy will:

• Improve an organisation’s ability to attract the best talent

• Improve employee satisfaction and so support talent retention

• Improve retirement savings, help employees to achieve their retirement goals and transition smoothly and happily from the world of work to the world of retirement

• Improve benefit participation and so increase employee and employer savings

Put simply, improving engagement improves business performance and profitability.

Using the Strategic Audit and Review approach, tailored to communications and engagement, we use a four step process that produces measurable improvements to your employee engagement.

Inventory

We will work with you to understand where engagement fits within your business, how, what and when you communicate. We seek to understand your corporate communications framework:

• corporate communications structure• brand guidelines• tone of voice

Analysis

Using our market-leading demographic insight we will know who your people are – age, location, gender, education level etc. – as these all make a significant difference to how they prefer to be communicated with, and how effectively they absorb and respond to communication. This will help inform:

• Tone of voice – friendly, formal, somewhere in-between?

• Personalisation – speaking to individuals as “an audience of one”

• Level of detail – for some, breaking information into bite-sized pieces will significantly increase the impact

• Media mix – a mix of media designed specifically for each segment of your workforce, targeting individuals in a meaningful and relevant way

Workshop

At a face-to-face workshop we will play back our analysis to you and gather your thoughts and your own insights so that we can collaboratively develop a communication strategy personalised to the needs of your business.

Delivery Roadmap

We will work with you to develop a delivery roadmap that constitutes a coordinated series of campaigns which meet the needs of your reward and benefits strategy.

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Governance

Investing the time, effort and money to understand your workforce and set up engaging benefit and reward programmes only really adds value when they are constantly monitored. By making sure your reward strategy achieves the objectives set out and remains fit for purpose you will be able to demonstrate a return on your investment and remain relevant to the employees you are looking to recruit and retain.

Governance of your approach to benefits and the associated strategy is absolutely crucial to its success. Our approach includes an innovative Strategic Governance process, which keeps you informed about your benefits programme.

We don’t just review performance and set a list of objectives to review every six months. We will help you to plan ahead, align key actions in your specific strategic roadmap to that of the business, plot where particular events might impact on your business and your employees, and set out a plan to achieve the best results, while proving and improving return on investment.

We do this by considering four key areas:

Robust Process

We establish a clear Strategic Governance structure, terms of reference and robust processes to support your planning and decision making and to ensure successful delivery of your strategic objectives.

Prove and improve return on investment

We define, measure and track core key performance indicators to measure and continuously improve the success of thereward programme.

Maturity Matrix

We use our innovative Maturity Matrix to continuously and effectively measure progress towards your targets.

Demographic Analysis

We conduct regular workforce demographics reviews to ensure that, as your workforce and your business changes, so does your strategy.

A central tenet of our partnership is that we don’t stop at the assessment phase or when a strategy has been formulated. Every organisation changes, both in terms of its business strategy and its people. A successful benefits strategy needs to be monitored to ensure it is meeting your objectives in the short and long term. This ongoing measurement and advice allows for:

• Better alignment and monitoring of objectives to business need

• Proving and improving your return on investment • Clearly communicating progress to all stakeholders.

As part of the Strategic Governance process we conduct regular workforce demographics reviews and Maturity Matrix reviews to ensure that, as your workforce and your business changes, so does your strategy.

The below example of the Maturity Matrix highlights the key areas of reward and benefits that we will measure during the Strategic Governance process.

Maturity Matrix

Key:

Target

Current state

Measure

Health management

Worldwide

Policy

Communications

Governance

Recognition

User experience

Strategy

Savings and retirement

Voluntary benefits

Benefits technology

Benefits administration

Benchmarking and Demographics

Many employers create reward and benefit programmes based solely on employee surveys and market or sector trends. But in many cases your particular workforce may not be engaged because the benefits lack relevance to them in terms of their economic priorities, family situation or life cycle stage. This leads to poor return on investment.

Our Benchmarking and Demographics Solution provides effective employee benefits market analysis. This will ensure that the reward and benefits programme you offer is based on up-to-date market analysis and current trends in employee benefits, maintaining competitiveness and optimising benefit costs against the value to your employees.

This Benchmarking and Demographics Solution combines multiple data assets from our market-leading employee benefits portal, Orbit, and uses advanced analytical tools to provide real time, targeted and accurate analysis of what is currently happening in the market.

Using a combination of data assets and the latest in demographic analytics, we enable you to ‘know your employees’ to a depth that will transform your decision making.

We assess millions of actual benefit choices made by employees and offerings by employers, combined with surveys, to build a picture of current trends and competitive challenges.

It’s time to relate your reward and benefits offering directly to your employees in a much more cost effective, systematic and meaningful way than previously possible.

Our Benchmarking and Demographic Solution will help you:

• Better understand what benefit choices are currently being made in the market by employees and employers

• Make your spend more effective by only offering the level of benefits you need to offer, based on market-wide analysis of employee choices

• Understand the competitive market – not just in terms of your sector but also the other competitors for your employees’ skills

• Help maximise satisfaction and retention by better fulfilling employee needs through targeting benefit offerings

• Formulate and align benefit strategy to meaningful segments of employees and make improvements to benefits

• Target benefits related messaging to reach specific employee groups

• Base and justify strategic benefits decisions on current data – not an out of date survey

• Identify groups of employees that warrant special attention

The largest impact on benefit selection comes about from marriage and children.

Child care vouchers

Partner critical illness

Gym

Critical illness

GAYE

Home emergency

Life assurance

Partner lifeKey:

Employees without dependants

Employees with dependants

Mergers and Acquisitions

Working with a major recently merged high street retailer we have helped them integrate and harmonise their benefits programme within 12 months on a cost neutral basis.

Cost neutral

The way in which you manage the transition of the talent in your business when you acquire or merge with another organisation is key to the success of the marriage. This applies regardless of whether as a company you are regularly acquisitive or acquisitions are a once in a lifetime, game changing event.

Any merger or acquisition will inevitably touch nearly all parts of your HR function.

The impact will vary from one company to another and will be dependent on a number of factors, including: relative size, similarity of practices between the two businesses, the receptiveness of the acquired business and the degree of integration required post acquisition.

Managing an acquisition takes time and can be a heavy burden for the HR team. For some organisations, acquisitions are a frequent activity, form a part of everyday life and teams exist in-house to manage the acquisition and subsequent onboarding. For other businesses an acquisition can be a life changing experience and HR teams may not have the skills or the bandwidth to cope. We have developed a flexible approach to our acquisition support model so that we can support organisations as much or as little as they need.

We ensure each element is assessed so that actions are proactively identified at the outset of the project, rather than appearing mid project as distractions and roadblocks.

Remuneration and remuneration practices

Benefits (including pension)

HR policiesWorking practices

Contracts

Structure and grading

Communications and stakeholders

Change, culture and engagement

Talent assessment & redundancy

Systems and processes

Workforce Data and Demographics

Exceptions and special cases

The table below outlines the phases and key activities involved in the acquisition process.

Pre Acquisition Acquisition (Short term) Post Acquisition (medium/long term)

1. Acquisition briefing2. Scope agreement3. Data capture4. Assessment5. Fit and gap analysis6. Key risks assessment7. Acquisition strategy 8. Acquisition plan9. Success measures definitions

1. Day 1 transition2. Integration (or not)3. Communication4. Measurement

1. Medium / long term harmonisation2. Communication3. Realisation of talent acquisition

synergies4. Measurement

Programme and Project Management

The suggested approach and observations highlighted above are the accumulated result of having supported many acquisitions over recent years, including one of the largest high street mergers.

We also have the advantage of being part of a large, regularly acquisitive business ourselves. Not only have we supported business acquisitions for our clients, we have experienced them as employees so can relate to the realities both as professional advisers and as impacted employees.

We recognise that you may already have some of the expertise you need in-house. We can work with you to provide as little or as much support as you need. Our aim will be to ensure that any resources we bring to the project work closely and seamlessly with your own personnel.

To find out more, please contact your Capita consultant or visit www.capita.co.uk/employeebenefits

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Capita Employee Benefits is a trading name of Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited. Part of Capita plc. www.capita.co.uk. Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited are registered in England & Wales No: 02260524 and 01860772 respectively. Registered Office: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.

Employee benefits CapitaEmployeeBenefits @Capita_EBCapitaEBCapita Employee Benefitswww.capita.co.uk/employeebenefits