The message behind your benefits package

The message behind your benefits package

Benefits are often viewed from the employer's perspective. Why was a scheme introduced? What problem does it solve? Or what is an employer trying to achieve with it?

Employees often see things differently. They don't always recognise the thinking behind a benefit, but they do draw conclusions from what they observe. A generous leave scheme, for example, can say something about the value an employer places on work-life balance. Eliminating waiting days can be seen as a sign of trust. And a broad training scheme can give the impression that development is genuinely considered important.

The interesting question is simply whether employees receive the same message as the one you think you're sending.

In this article, we look at the signals that benefits convey and how employees may interpret them during a recruitment process or throughout their time with an organisation.

Why sometimes doing nothing is better than doing something

Employers' intentions are often good. Budgets are allocated, new schemes are introduced, and active thought is given to ways of showing employees extra appreciation.

When we look at the benefits packages we encounter during consultancy projects or within Total Benefits, we can see that many employers are genuinely trying to offer something extra.

Yet we regularly see well-intentioned benefits produce a different effect than intended.

A good example is a modest gift policy, think of a small contribution for a wedding, birth, or work anniversary. The thinking behind it is positive. As an employer, you want to acknowledge important moments in your employees' lives.

But when the contribution is perceived as limited, attention shifts from the intention to the amount. Employees then don't ask why the scheme exists, but why it's so low.

In some cases, this actually generates more discussion than if no scheme had existed at all.

That may sound strange, but it shows that employees don't judge benefits on the thinking behind them, they judge them on the value they experience.

That is precisely why it's important to look not only at what you offer, but also at what message a benefit conveys. Sometimes a scheme strengthens the employer brand. Sometimes that same scheme raises questions you'd rather not have to answer.

In other words:

1. Benefits send signals.

2. Employees interpret those signals.

3. That interpretation doesn't always match the intention.

4. Sometimes a benefit can therefore even backfire.

Doesn't one thing always come at the expense of another?

Another way in which employees interpret benefits is through the assumption that a new benefit always comes at the cost of something else.

We have seen this happen on multiple occasions at organisations that invested in green benefits, think of schemes allowing employees to make their homes more energy-efficient or to take advantage of sustainable mobility solutions.

The employer's thinking is often positive. The aim is to contribute to sustainability, make a social impact, and support employees through the energy transition.

Yet we regularly saw a different reaction emerge.

Some employees didn't ask why this benefit was being offered, but what had been given up in exchange. The reasoning was straightforward: money can only be spent once. So if budget is available for sustainability schemes, does that not come at the expense of a pay rise, bonus, or other benefit?

Whether that reasoning is justified is, in fact, almost beside the point. What's more interesting is that employees assess the benefit differently from how the employer intended.

Where the employer sees an investment, an employee sometimes sees a trade-off. That too is a message that benefits can send.

Context shapes the message

This doesn't mean employers should stop introducing new benefits. On the contrary.

The examples above primarily show that benefits don't exist in a vacuum. Employees assess a benefit not only on its content, but also on the context in which it is offered.

A sustainability scheme is viewed differently when employees are simultaneously satisfied with how their salary is developing. A gift policy is experienced differently when it fits within a broader culture of appreciation.

The message a benefit conveys is therefore shaped not only by the scheme itself, but by everything surrounding it.

That is why communication around benefits is at least as important as the benefits themselves. Employees don't always see the thinking or intention behind a scheme, unless you actively explain it. What seems like an obvious choice to an employer can take on an entirely different meaning for an employee.

When benefits send the right message

Fortunately, the reverse is also true.

We regularly see employers who manage to send a powerful message with relatively straightforward benefits.

• An employer who eliminates waiting days communicates trust.
• An employer who offers enhanced parental leave shows that attention to family life is considered important.
• An employer who gives employees the flexibility to take public holidays on days of their own choosing shows an awareness of different backgrounds and personal preferences.

Precisely because employees interpret benefits, well-chosen benefits can be a powerful part of the employer story. In practice, we even see that employees sometimes barely use a particular benefit, yet are proud to work for an organisation that offers it.

The message behind the benefit is then at least as valuable as its actual use.

Finally

Employers design benefits with a particular intention in mind. Employees assess those same benefits through the lens of their own reality.

That makes benefits more than a collection of schemes. They communicate something about the choices you make as an employer, the things you consider important, and the way you view your employees.

Where the employer sees an investment, an employee sometimes sees a trade-off. And where an employer sees a practical arrangement, an employee may experience it as a signal of trust, appreciation, or genuine engagement.

The question, therefore, is not only which benefits you offer, but above all what message employees read into them.