Proposal for introduction of flexible benefits for a major airline in the Middle East.

1. FLEXIBLE BENEFITS
PACKAGES: OPTIONS
AND
RECOMMENDATIONS
FOR AN INTERNATIONAL
AIRLINE
Sandrine Bardot – CompensationInsider.com

2. 2


This assignment was given to me as a case
study during the recruitment process for an
international airline company from the GCC a
few years ago.
The content has been sanitized to delete any
reference to the specific employer. New name
is “Fly Right”.
© 2013

3. Agenda
3
A – The approach
Diversity at Fly Right
The current package structure
Objectives of flexible benefits
Challenges in implementation
Proposed approach
B – Some initial ideas
Deciding on levels of flexibility
Customisation within the current package
Travel-related
Well-being and securing income
Financial
Education and career growth
Home and family
© 2013

4. 4
A – The approach
© 2013

5. 5
Today and tomorrow – diversity is
the key word

Geographic diversity :
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
54 country destinations at the moment, 86 destinations
Around 60 outstations from Australia to Belarus, Canada to Sudan
Cultural diversity :
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A young workforce

3 main lines of business : airline, cargo and holidays

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Around 6,000 employees, over 100 nationalities.
Very different jobs : flight crew, cabin crew, ground, corporate
Aggressive growth plans :


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The Middle East is among the strongest airline growth regions (IATA)
Fly Right operates 79 aircraft and has over 100 on order
This results in increased labour competition, with employees being
sourced globally, and risking being poached by regional
competition
© 2013

6. Current package structure
(as per the recruiter)
6





Basic salary
Housing allowance or company-provided
accommodation (depending on the grade)
General or transportation allowance
Settling-in allowance
Assumption : Fly Right also provides the 2 other
main package components that are prevalent in
the industry :


Some form of profit-sharing plan
Discounted / free travel
© 2013

7. Objectives of flexible benefits
7








Facilitate attraction of candidates in a tight labour
market
Improve employee retention
Meet needs of the employees
Recognise and celebrate employee diversity
Emphasize package value to maximise employee
appreciation (understanding of total rewards)
Maintain competitiveness of compensation
packages
Be recognised as an employer of choice
Maintain control over costs
© 2013

8. Challenges in implementation
8




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Disparate populations (jobs, salaries, locations)
Technical and compliance
Administration of plans (link to payroll system)
Process management (choosing and changing at
specific dates, estimate take-up rate of specific
benefits, reach out to outstations and away-fromhome employees...)
Leavers and outstanding balances
Lifecycle changes (marriage / divorce, child birth,
death of dependant, long-term sickness,
promotion...)
Continued PR to maintain participation
© 2013

9. Proposed approach
9

Step 1 : feasibility study and decision


Collate and analyse employee views (focus group,
questionnaire, manager interviews...), get feedback
from other key stakeholders
Integration with rewards philosophy :








How protective do we want to be towards employees
What proportion of the package should be flexible
How hierarchical our rewards are
What is our desired market positioning (competitiveness)
How open do we want to be about rewards
Do we want core + options, opt-up/opt-down approach...
Understand specific implementation challenges and
scope out deployment plans (Pilot ? Progressively or
at once ?...)
Quantify the financial business case
© 2013

10. Proposed approach – cont’d
10

Step 2 : implement



Find an administrator and HRIS provider
Roll-out comprehensive communication and
engagement plan, targeted at all eligible
employee levels and with many different media
Step 3 : monitor and adapt
© 2013

11. 11
B – Some initial ideas
© 2013

12. Deciding on levels of flexibility
12





Introduce flexibility within management of
current package
Set-up new benefits with some degree of
choice within
Set-up a fixed allowance for employees to
choose which benefits to elect
Set-up additional, voluntary benefits with or
without salary sacrifice
Mix and match approaches for best-fit to
company culture and desired outcomes
© 2013

13. 13
Customisation within the current
package

Housing :


Could give the choice of upfront cash, companyrent (rent within a budget and any buy-up is
deducted from payroll) or company
accommodation, with support from the in-house
property management department
Profit-sharing :

Could be proposed full cash immediate, or with
some form of company-matching if retained for a
minimum period
© 2013

14. Travel-related
14

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
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Propose interlined discounted travel
Free currency and buy-back
Executive Lounge access
Airport retail discounts
Holiday discounts (car hire, hotels, dining, tours,
cruises...)
Personal / business travel insurance
Earn buddy passes (eg : Southwest up to 4 per
quarter depending on number of hours worked)
© 2013

15. Wellbeing and securing income
15

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
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Dental / vision care
Health screening
Wellness programme
Increase in life insurance cover
Dependants life insurance
Different levels of medical cover / long-term
disability insurance / ADD
Long-term saving plan (eg Emirates : 5% basic /
12% employer) or addition to End Of Service
contributions for pension purposes
© 2013

16. Financial
16



Introduce a share scheme
Give-as-you-earn charitable contributions and
carbon-footprint offsetting
Financial planning education (budgeting /
personal finance, debt management,
retirement planning, investment advice...)
© 2013

17. Education and career growth
17
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Tuition reimbursement
Personal development programs
Days of shadowing
“Lunch and learn”, online training, after-hours
workshops...
© 2013

18. Home and family
18

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Maternity leave (paid or unpaid)
Childcare vouchers
Administrative support for nanny visa etc
Retail or leisure activities discounts / vouchers
Gym membership
Flexible working hours and telecommuting
Buy or sell annual leave
Paid-leave bank
On-site and concierge services : dry-clean, on-site
restaurant / ATM etc
Employee Assistance Programme
© 2013

19. Free resources from my blog
19





http
://compensationinsider.com/the-shelf-life-of-compensa
/
http
://compensationinsider.com/7-steps-to-compensation/
http://
compensationinsider.com/are-you-benchmarking-or-co
http
://compensationinsider.com/reader-question-what-driv
/
© 2013
http://compensationinsider.com/relocations-do-you-off

20. Thank you !
20
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Sandrine@Compensationinsider.com
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