Branding design agency Principals and strategic insights consultancy Nature have teamed up to create a tool that measures return on investment for employee benefits.
Research conducted this year shows two-thirds of candidates are accepting job offers based on a company’s benefits rather than the salary offered.
And 70% of hiring managers plan to increase their benefits package this year to attract and retain talent.
An ever-lengthening list of benefits is being used to try to attract the right staff.
However, employers have struggled to determine the right configuration of benefits that will attract and retain top talent at a sustainable cost.
Principals and Nature have joined forces to create the Benefits Optimiser tool.
“Covid put employer benefits on the table in a way we have never seen before and to compete, many companies have thrown a range of offers at new and existing staff," says Principals employer brands irdector Claire Gallagher.
"Rather than take a scattergun approach, we have developed a model that can clearly identify where organisations should invest in their people.”
Using choice modelling, the tool helps businesses to understand the perceived value and impact of existing and potential benefits, from leave entitlements to learning and development, financial benefits or flexible working hours.
A simple 12-week process identifies the associated value of each benefit to design the optimal configuration of benefits for an organisation by talent segment. The process will also explore additional benefits talent may be looking for and what aligns with the brand.
Nature managing partner Chris Cook says traditional measurement techniques such as ranking and rating of features and benefits have the advantage of simplicity but the drawback of often leading to many survey respondents signalling that everything is important to them, or that they would ideally like high levels of "everything".
"This arises because ranking and rating techniques typically involve benefits being evaluated independent of one another," Cook says.
"The Benefits Optimiser tool is a best practice alternative that can deliver tangible results for organisations.”
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