Case study: The client is a young company that has great plans for growth, many of which rely on the...
Case study: The client is a young company that has great plans for growth, many of which rely on the fundamental backdrop of a stable workforce in the volatile hi-tech economy in which it operates.
The company was starting to face critical recruitment, retention and staff motivation issues with its highly skilled employees.
To help address these challenges, the company created an employee share option scheme to which 15% of its shares are allocated. Employees also receive pension, death in service, income protection and private medical insurance benefits.
All employees are on a continual development programme, receive extensive training and have the ability to move into new roles within the business.
It became clear to the company however, that the employees had little understanding or appreciation of their total remuneration package.
Administration of the benefits was a time-consuming and cost-draining exercise using paper and standalone spreadsheets, while benefits communication to employees had been via periodic pamphlets and brochures.
When sourcing a human resources system, the software needed to adapt to the changing needs of the growing company and be able to help the HR team manage the personnel and recruitment challenges facing them.
Additionally, it was vital for the HR system to integrate with the new benefits software to ensure that data did not have to be re-keyed at each exchange between employee, HR, payroll, the company's financial advisers and the benefit providers.
The solution means that the client receives an advanced e-business HR solution that streamlines the benefits administration process.
The HR team now gets fast access to information about employees, job type and departments to make decisions based on reliable data.
On top of this, they can efficiently manage the employees' individual development programmes and career progression as well as handle appraisals and performance reviews.
The integration with employee benefits software takes away the single biggest point of administration pain.
Once an entry has been made, it feeds to HR and benefit databases, automating the lengthy chain of business processes that previously had to be performed manually.
In return, the HR administrator can upload information on starters, leavers and revisions, which is automatically transferred to the software. This then acknowledges receipt of the file, and emails confirmation to HR.
The client believes that its share scheme and its positive communication to employees has been a cornerstone of its success, leading to a highly motivated workforce, low staff turnover and a strong culture of ownership.
The software gives the client the opportunity to manage and communicate benefits to employees, dynamically linking employees with their employer and also their various benefits providers.
Employees are shown the total cost of their benefits, and are able to put a figure on the true value of their salary package, probably for the first time in their working lives.
Michael Hart is managing director at Lucas Fettes & Partners
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected