Cultural considerations for employee benefits

At the heart of every successful business is an employee benefits scheme that seeks to balance the differing needs of staff with an employer's desire to attract, motivate and retain the best people. The advantages of providing competitive and varied benefits packages to employees is clear but how do you match this to an individualís personal needs and wants? And do these change from country to country and different cultures? With internationalisation being a key driver in the oil and gas industry, one Aberdeen firm held an event to discuss the issues.

Recruitment Consultancy, Source-People and Aon Consulting, a leading employee risk and benefits management firm, invited delegates from businesses throughout Aberdeen to attend their exclusive lunch & learn ëGlobal Benefitsí seminar. The aim was to discuss and debate the challenges and solutions of developing compensation plans that meet the needs of employees, yet still remain in line with corporate goals and objectives.

Pauline Redpath, director of Source explains: ìthe importance of employee benefits cannot be overstated, as many employers will be aware that monetary reward alone is not always a primary factor in motivating or attracting an employee. Many hold other benefits, such as a pension scheme, with equal regard to their salary and employers that fail to maintain a competitive balance of employee benefits will often fall behind in the race to recruit and retain the best staff.î

A number of key representatives from Aon Consulting attended the seminar, each delivering presentations on the differences that exist between benefits available worldwide and the UK.

Richard Strachan, senior consultant of Aon Consulting said: ìUnderstanding and accepting cultural differences is fundamental when looking at what employees should have at their disposal in terms of benefits and rewards. The main point to stress is that a ëone size fits allí approach will not work. Today, companies are under more pressure than ever to manage benefit programmes that cater for the individual needs of each employee, according to regions, employee levels, length of assignment or legislation. You canít necessarily satisfy each group of employees with the same benefits package, there needs to be an element of choice and despite what might be perceived, this doesnít have to involve increased resource and budget.î

According to a recent survey ranking the importance of benefits employees look for when considering a new position in the US, medical insurance was listed as the most important with 84%. Other benefits listed included job security, clearly listed policies, flexi-time, potential for job promotion and pay. This helps demonstrate that boosting salary may seem like the easiest option for improving benefits, but may not be the most cost effective option, or even what employees view as most important. An organisation employing 1,000 staff each earning an average of 20,000 will spend an extra 1 million giving a 5% pay rise. For a fraction of this cost, the same organisation could implement an employee benefits scheme and probably get a more engaged workforce whilst doing so. Communicating with employees, finding out what would best motivate them individually, and tailoring what is available to suit their needs could benefit organisations significantly.

For further information on the seminar or advice on global employee benefits please contact Pauline Redpath at Source People on 01224 623700.

Headquartered in Aberdeen, Scotland, Source operate on a global basis providing innovative recruitment solutions including specialist recruitment and Search & Selection services. Primarily focussed on the International Oil & Gas sector Source specialise in the skilled commercial disciplines; Finance & Accountancy; Legal & Contracts; Technical & Engineering and Human Resources.