A Benefits Philosophy as a framework for future benefits policy

Many organisations have a clear sense of their mission, vision and core values. In theory, these form the foundation for decision-making. But when you look at benefits, that thread is far from always carried through.

Benefits often grow organically. Something is added because of legislation, a benchmark or an individual request. Understandable in itself, but the result is that the package becomes fragmented over time. And that is precisely where something is often missing. An overarching guiding principle.

From core values to benefits

In our consultancy practice, we regularly use core values as a starting point for benefits. It helps to substantiate choices and makes the story you tell employees more consistent.

If you say, for example, that the employee comes first, that needs to be visible in your package too. The same applies to themes such as sustainability or vitality.

Linking benefits to core values helps to make that thread visible,

not only internally, but especially to prospective employees as well.

What helps here is making that link explicit. Not only in policy, but also in the way you make your package transparent. By recording, for each benefit, which core value it contributes to and what purpose it serves, you create greater coherence.

In practice, we find that organisations that actually document this arrive at consistent choices more quickly. WithinTotal Benefits, we make that link explicit by recording, for each benefit, which core value it contributes to and what the underlying intention is. This turns it into not just a conceptual framework, but something you can actively steer and evaluate against.

It makes clear where the emphasis lies and where gaps still exist. At the same time, this is often just a first step.

Moving towards a Benefits Philosophy

While core values provide direction, we see that organisations that have taken things a step further work with what is known as a Benefits Philosophy. That may sound abstract, but in practice it is actually very concrete.

A Benefits Philosophy is nothing more than a set of principles on which you base your benefits. Not a collection of loose ideas, but a rationale for the choices you make, now and in the future.

It helps you stay consistent. Not only when introducing new benefits, but especially when adjusting or phasing them out as well.

Giving direction to choices

What we see in practice is that organisations without a clear philosophy are quicker to make ad hoc decisions. Something gets added because it is market-conform, or because a competitor is doing it too.

With a clear philosophy, that dynamic changes. Choices are then tested against a number of fixed principles.

For example:

• how much flexibility do you want to give employees
• where is the line when it comes to financial security
• to what extent do you, as an employer, take on risks from the employee

Those kinds of questions are not operational, they are strategic. And that is precisely what makes them valuable to answer in advance.

From abstract to concrete

A philosophy only gains value when it becomes visible in the package itself.

We know of employers who take the position that employees should never be worse off when significant events occur in their personal lives.

The consequence of that is clear. Leave arrangements and continued salary payment during illness are supplemented to 100 percent. A costly choice, but one that is entirely in line with the philosophy.

Other organisations place the emphasis on vitality or sustainability. You see that reflected in multiple choices at once, rather than a single standalone arrangement.

One example isKPN, where the focus is not only on sustainable mobility, but also on behaviour. By contributing to the cost of an electric bicycle and offering a higher mileage allowance for cycling, a clear direction is chosen.

Why this makes the difference

A Benefits Philosophy not only helps in making choices, but also in explaining them.

For employees, it becomes clearer what your organisation stands for. Why certain things are facilitated and others are not.

And perhaps more importantly, it makes the benefits package more future-proof. New choices no longer need to be reinvented each time, but fit within an existing framework.

In closing

A Benefits Philosophy may sound like something abstract, but in practice it is above all a way of bringing structure.

Not by locking everything down, but by formulating clear principles. So that benefits are not a collection of standalone arrangements, but a coherent whole that fits the organisation.