Using flexible benefits as a strategic tool at Grant Thornton

Citation

Balme, J. (2009), "Using flexible benefits as a strategic tool at Grant Thornton", Strategic HR Review, Vol. 8 No. 2. https://doi.org/10.1108/shr.2009.37208bab.007

Using flexible benefits as a strategic tool at Grant Thornton

Article Type: Rewards From: Strategic HR Review, Volume 8, Issue 2

Short case studies that demonstrate best practice in rewards

Jenny BalmeNational director, head of reward and relations, at Grant Thornton. She graduated from Nottingham University and originally joined Grant Thornton’s accountancy trainee program in 1980. After a year working with Marks & Spencer and gaining her final accountancy qualifications, Balme developed a growing interest in HR that she pursued on her return to Grant Thornton. She took on the role of regional HR manager in 2001 and was promoted to national director of HR operations in 2003. E-mail: jenny.a.balme@gtuk.com

Marcus UnderhillDirector and head of consulting at Vebnet. He has worked with 13 of the FTSE 100 organizations on flexible benefits strategies in the UK and has led the implementation of over 70 flex plans. He has worked in the industry for nearly 20 years, with previous roles including head of flexible benefits consulting at Watson Wyatt and head of flexible benefits for Europe at Mercer. E-mail: marcusu@vebnet.com

On 1 July 2007, business and financial adviser Grant Thornton completed the largest merger in the UK financial sector in almost a decade. The merger with RSM Robson Rhodes confirmed its position in the market by consolidating and expanding the range of services on offer. Grant Thornton UK now has offices in 29 locations nationwide, more than 40,000 clients and a total UK headcount of 4,200 employees.

As a result of the merger, the firm launched an innovative flexible benefits package, working alongside full service flexible benefits provider, Vebnet. The decision to use flexible benefits as a post-merger tool followed discussions with the firm’s leadership and feedback from employees. “Flex” was seen as being integral to delivering a reward package appropriate for the new firm The business objectives were two-fold; the introduction of the scheme demonstrated the firm’s major commitment to employee engagement and, secondly, the flexible benefits launch was used as a vehicle for the harmonization of terms and conditions across the newly merged firm.

This was an opportunity to remind everyone of the total “deal” and of the benefits of working for the firm, including the range of training and development initiatives and enhanced flexible working, maternity and paternity pay policies on offer. The firm set about devising a major program for the introduction of the flexible benefits scheme that would meet the following strategic objectives:

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  Develop an appropriate reward strategy for the new firm and its culture.

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  Introduce flexible benefits to all employees both as a vehicle for harmonization of terms and conditions across the newly merged firm and as a way of expanding the benefit offering to all employees.

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  Engage employees via a comprehensive program of research and communication in order to encourage take up and acceptance of new contracts.

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  Underpin the culture of the new firm, which emphasizes its partnership with employees.

In order to deliver a seamless transition for the flexible benefits program, the firm embarked on a high profile strategy of employee research and communication.

Researching the package

Grant Thornton’s research program started in July 2007 and included an online survey of all 4,200 employees, which resulted in a 65 percent response rate. Focus groups were implemented across the country targeting 200 employees in six locations. This was underpinned by early and consistent communication with Grant Thornton’s UK-wide information and consultation forum’s elected spokespeople to gather information from local employees. In addition, external benchmarking of both Grant Thornton competitors and the industry sector was undertaken to ensure the offering was leading edge.

Using the results of the research program, Grant Thornton’s core benefits package was adapted to reflect both employee input and best practice in the sector. The changes included increases to employer pension contributions, employee private medical insurance and income protection insurance for all employees plus the ability to buy up to ten days holiday. The decision to create a flexible benefits package was heavily influenced by the results of the research.

Communicating the benefits

A communication strategy was developed to drive an understanding of employee packages before and after the flexible benefits scheme was launched, as well as to highlight any changes arising from the harmonization of contracts of employment. All communications within the firm were delivered under the sub brand, “Your benefits, your choice,” and commenced with online total reward statements to demonstrate to employees the value of their packages pre-flex. To encourage employees to visit this site, Grant Thornton launched “Shopping Gateway,” a voluntary benefits offering ahead of flex that allowed them access to well known brands at discounted rates. Over £500,000 has been spent on the site to date.

Further communication platforms included newsletters, intranet news items, booklets, targeted e-mails, a micro site on the Grant Thornton intranet, two further total reward statements and a major DVD presentation during enrolment week. An e-mail and telephone call center, managed by Vebnet, dealt with over 600 e-mails and 2,000 telephone calls during the enrolment period. The enrolment period lasted three weeks and employees were offered access to dental, travel and critical illness cover, discounted gym membership and the ability to buy or sell holidays as part of signing up to the new terms and conditions of employment.

Senior level commitment

Grant Thornton prides itself on offering a high quality and professional yet personal service and takes this approach with both clients and employees alike. For such a large scale benefits introduction to be successful, it was imperative that all management were supportive of the program from the outset.

The HR team was dependent on this culture of co-operation for the campaign to be a success. Managers and partners at each of the Grant Thornton business units were responsible for facilitating presentations to their teams based on the tailored DVD material and engaging employees in the concept of flexible benefits and the harmonization of terms and conditions. The extremely high take up figures for the new flex package demonstrates how successful this approach has been.

Business benefits

The flex scheme at Grant Thornton was introduced in April 2008 and has assisted fundamentally in the harmonization of two sizeable operations by helping to bring together and underpin the new culture. Employees across both firms signed up to new contracts and the flexible benefits scheme at the same time. The areas of employee attraction and retention are a key focus for Grant Thornton and the firm believed this enhanced benefit offering would also further support this goal.

By close of the enrolment period over 99 percent of the 4,200 Grant Thornton employees had signed up to the flexible benefits scheme. Other indicators of the success of the scheme include:

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  Over one third of employees altered their holiday packages – this was the most popular benefit option. Other popular options included critical illness (8.3 percent), dental insurance (7.3 percent), childcare vouchers (7.1 percent), personal accident (4.8 percent) and health assessment (4.7 percent). Charitable contributions, bikes and PURE carbon offsetting were also available to employees.

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  Over 10 percent of employees joined a pension fund for the first time.

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  Shopping Gateway, on launch, was the most visited site in the history of the Grant Thornton intranet.

Overall, and most importantly, employee feedback has been extremely positive and a great success. A follow-up survey showed that over two thirds of employees found the system easy to log on to. More than 80 percent felt there was enough information to make an informed decision about their choices and that the scheme met their needs. Most importantly, the introduction of this new comprehensive benefits system was felt to be a very positive experience by all employees.