Chrysalis Group tunes into flexible benefits with 4th contact

Online flex maximises value of benefits and increases ëemployer of choiceí status Implementation will maximise benefit spend and make savings in first year Internal survey highlights employee desire for flex; implementation also aims to increase staff retention

The Chrysalis Group, well-known for its radio stations, music and book publishing interests, is maximising the value of staff remuneration by launching 4th Contact flexible benefits technology to its 700 employees. The initiative was prompted after a staff survey showed dissatisfaction with the original benefits offering. However, the transformation also allows the Group to maximise benefit spend. 4th Contact is working alongside PricewaterhouseCoopersí Human Resource Services division, which is designing the flex plan. 4th Contactís online system is being integrated with Snowdrop Systems human resources software.

Chrysalis Group holds the unique position of being the only public company in the UK to incorporate four key media sectors; radio stations (Heart, LBC and Galaxy), music publishing and recording, book publishing and mobile content delivery. It has offices in London, Manchester, Birmingham, Leeds and Newcastle. The Group sits at number 46 on the ëSunday Times Top 100 Companies to work forí and was described as ëa company with a heartí. Fifty-five percent of its employees say they are doing their dream job.

Not surprisingly then, internal staff surveys and focus groups consistently show that employees like working at Chrysalis. Craig Warden, Human Resources Director for the Chrysalis Group, explains, ìOur aim is to be an employer of choice and to do that we need to understand our employees very well. A work/life balance survey, however, showed that our benefits offering did not reflect our employeeís lifestyle and was therefore undervalued.

ìEmployees didnít, for instance, rate private medical insurance or private health insurance, yet these are typically very expensive benefits to provide. The staff appreciation didnít match the company expenditure,î adds Warden.

Flexible benefits were Wardenís first choice to rectify the problem as flex enables employees to make significant benefit choices to suit their individual lifestyles. In turn, flex makes benefits highly visible so employees can value their total reward fully, ensuring each staff member knows just how much the company provides for them.

After exploring the market fully, Warden decided that launching straight into online flexible benefits with 4th Contact was the best route forward. He did consider just buying or selling holiday in a partial flex scheme, but given the benefits of full flex, where employees can make choices and the company gains the ability to better motivate and retain every individual, he pitched to the Board for full flex straight away.

ìWe piloted a manual total reward statement in the past, but would never do that again because of the large amount of administrative work created. We were very impressed with the 4th Contact technology and what it can do. We were particularly impressed with the leave/absence tracking facility and the whole system is not labour intensive and should greatly simplify our HR benefits administration. The system also integrates with Snowdrop Systemsí HR software so that we will have a single point of data entry for all HR processes. We hired 4th Contact after meeting with three different online benefit providers. That only left the need to find the right consultancy to provide benefit guidance and tax advice, which is when we appointed PricewaterhouseCoopers.î

The Chrysalis Group expects to see some cost savings in the first year, even taking into consideration the implementation expenditure, with more significant savings in the second year. Warden adds, îItís important for us to prove weíve listened to our employees and tell them how weíre responding. The new flex implementation is creating a real buzz, employees are very excited about its launch and we are confident that the flex scheme will bring increased employee satisfactionî.

Chrysalis has long-serving, motivated and loyal employees - important when one of the Groupís goals is to outperform its industry peers. Warden adds, ìLike most other media companies, we are competing in a battle for talent across key disciplines. Retention was a key deciding factor and will be an important metric in determining the success of the project. We are confident that our employees will find our benefits offering far more attractive and have a better understanding of the total value of their reward package.î

John Harding, Senior Manager Human Resource Services, PricewaterhouseCoopers, explains, ìA clear goal for Chrysalis is to be an employer of choice, yet it wants to keep benefit spend in line with corporate financial objectives. Weíve highlighted ways to introduce employee benefits in a manner that will save money, but also to attain staff objectives so that the remuneration package is highly valuedî.

Paul Watson, newly promoted to Vice President of Business Applications for Star, 4th Contactís parent company, comments, ìChrysalis employees are typically forward-thinking, intelligent, young and savvy. They know what they want from their employer, and very importantly, HR and the management team give them the ability to create positive change. Itís fantastic to see this system work so well. With 4th Contact, this mid-size company is ensuring that employees understand and fully value their benefits package, so HR can help attract and retain the bestî.