Lloyds TSB’s flexible benefits package, Flavours, has had a positive impact on employee engagement. Elizabeth Yates, manager of compensation and benefits, says: “I think because we offer a benefits package where people can have a say in how they are rewarded it has a positive impact on employee engagement levels.”
Lloyds TSB has offered a flexible benefits plan to its 70,000 staff since 2003. Employees receive 4% of their annual salary to spend on a wide range of benefits, and can also use up to 50% of their salary on flexible benefits if they wish. Employee surveys show that 95% of staff believe the range of benefits is relevant to their needs and a further 92% say flex is a valuable part of their overall package.
Yates says that the company deliberately hasn’t measured the impact of flex on recruitment and retention because the benefits package is seen as just part of a much wider picture. “What we do know is that people really value their benefits package and they would be hard pushed from our market research to find a package that is as good with [another] employer,” she adds.