Benefits or burst

human resources feature
Benefits or burst
By Margaret Ferns
Various salary surveys conducted in recent years have shown that what employees look for from an employer has changed. It
is fair to say that recruitment is a candidates’ market at present and so it is often the case that they can choose between on job
offering and another with similar salary packages and working hours. The question is what makes the difference? Why should
a candidate choose one company over another? T
he same surveys have also
shown that is not necessarily
high salaries and a company car
that tip the balance. The working environment has changed
dramatically thanks to the influences of things like globalisation,
mobility, modern communications technology and the ageing population, as well as other
social changes (family structures,
for example) and the cost of living. As a result, candidates look
for employers that can offer
those terms that facilitate these
new conditions.
Evolving extras
Since most companies within
a given sector offer similar salary packages, it has become
increasingly the case that it is
the “extras” that will influence
a candidate’s final choice, not to
mention encourage employees to
remain loyal to their current employer (turnover in Luxembourg’s
financial sector, for example, is
at an all time high). However,
considering the economic, social
and technological changes just
mentioned, what constitutes an
“extra” has also evolved.
Paul Heinz, Manager, Extra Time
(providers of concierge services
and personal assistance to customers, employees and staff)
believes that today’s work environment, albeit a candidates’
market is nonetheless, “increasingly stressful and demanding.”
However, he has also noted that,
“More and more companies are
starting to recognise that this
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businessreview
Paul Heinz
has a negative impact on employee morale and productivity,
which generates additional costs
due to absenteeism and health
issues.”
Laurence Graff, Marketing
& Communication Manager,
Sodexho Luxembourg (providers
of Cheque Repas, events catering
services, in-company restaurant
services and, more recently,
Fruit@Office) has observed a
similar trend. “Demand from
companies is definitely more
oriented towards finding solutions that allow their employees
to find a better balance between
their private and professional
lives. Not only that, but employers realise that the performance
of their people is very closely
linked to their well being.”
A new generation of benefits
Accor Services, well known in
Luxembourg for IZI Life (concierge services) and Kid Sitting
(last minute babysitting), as well
as Ticket Restaurants and Ticket
Compliments Supreme Award
(gift vouchers) has also noted
that, “Employers in Luxembourg
are offering a new generation of benefits in kind to their
employees,” said Marie Cordiez,
Communication Manager.
This new generation of benefits is
very much geared towards easing employees’ work/life balance
– hence the very existence and
success of the companies just
quoted. “We have experienced
a shift in interest from financial based benefits – luncheon
vouchers, company cars, mobile
phones etc. – towards benefits
that support daily life issues like
flexible working hours, home office or concierge services,” said
Paul Heinz.
Company cars & corporate responsibility
However, that is not to say
that the more traditional
benefits have lost favour.
Laurent Gouverneur, Strategic
Fleet Consultant at LeasePlan
Luxembourg told BR about a
survey his company carried out
in 2006. “Our study showed
that in Luxembourg a company
car is still the most appreciated
benefit in kind, coming in before
pension plans and other extras.” >>
human resources feature
>> He explained further that the
survey, which took place in 16
countries including Luxembourg,
listed the reasons why a car is so
appreciated. “62% replied that a
company car is less hassle than
private vehicle, and it is also
considered less expensive – this
perception was most noticeable
in Luxembourg with 61% against
54% in other countries.”
Jean Kerschen of Athlon Car
Lease agrees that the car is still
considered a major plus, but
has noted that attitudes have
changed. “While cars are very
much appreciated, they are now
more often considered to form
part of the salary package than
as a benefit in kind.” In his view,
this is fine, but he did mention
another, wider reaching, positive
aspect of managed fleet services.
“It is good for corporate social
responsibility. We can work
together with businesses to establish car policies that respect
the environment – reducing fuel
consumption, use of “safe cars”
with a maximum of safety oriented features etc. We all have a
duty to leave a livable planet to
our children.”
Companies seek to
add value
In terms of recruitment then it is
a candidates’ market at the moment and, since many employers
in a given industry offer similar
salary packages and hours, it
seems that it is the extras that
can make a difference. Cars are
still highly valued, although now
tend to be viewed as part of the
package as a whole than as a
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businessreview
Gilbert Renel, Deloitte
benefit in kind. As a result of fundamental changes in the working
environment – economical, technological and social – candidates
prefer those companies that can
ease the work/life balance. In order to get an idea of just to what
level enterprises in Luxembourg
have come to accept this fact,
BR asked Gilbert Renel, Partner
Advisory & Consulting at Deloitte
in Luxembourg what his experience has been.
“We gave definitely witnessed an
evolution in the types of benefits
offered by companies. We see
more companies offering “at
work” amenities like gyms and
concierge services to their employees. In fact this is a message
that Deloitte has been trying get
across to its clients – ease the
work/life balance and you have
happier, more productive and
loyal people. As a result we have
seen clients try to offer benefits
that are of real value to their employees.” However, the question
this article seeks to answers is,
“Why should candidates choose
one company over another?” In
other words, can the types of
Laurent Gouverneur, LeasePlan
benefits in kind available really
influence a candidate’s choice of
employer?
Benefits to attract &
retain
Laurent Gouverneur said that
LeasePlan has, “noted that many
companies that don’t propose
company cars have experienced
a lot of difficulty recruiting the
profiles that really interest them,
especially in the IT, audit & advisory and banking (after a certain
level) sectors.” Paul Heinz’s view
is that, “Extra benefits will certainly influence the final choice
between two similar employers,
“but added that, “choosing a
career is a complex decision and
one that involves considering career opportunities and company
reputation, as well as its location and salary package.” Gilbert
Renel’s response was that, “it
really depends on the job.” In his
experience, if it is a general role
then, yes, benefits can have an
influence, but in a career choice,
“what are important are the op-
portunities for progression and,
above all, the company culture.”
So, benefits in kind can exert
some influence on a candidate’s
decision to join a company, depending on the nature of the job
and its career prospects as well as
the company culture and values.
But what about keeping the staff
already in place? Can benefits
encourage loyalty? According to
Laurence Graff, most definitely,
“All the studies done on this topic
have shown that employees are
not simply seeking the highest
possible salary, but those advantages that allow them to improve
the quality of their daily lives.”
Marie Cordiez agreed, “Employees
look for those advantages that
improve their quality of life.
Employers which, via the benefits
they offer, send out the message
that “your well being is important
to us” are very much appreciated.
And, once established with such
an enterprise it is very difficult
for a candidate to leave.”
www.extratime.lu,
www.leasepaln.lu,www.athloncarlease.com,
www.sodexho.lu,www.accorservices.lu,
www.deloitte.lu