The document summarizes Capita's services for optimizing employee reward and benefit programs. It provides data-driven strategic reviews and designs of programs to improve engagement and identify cost savings. Key services include benchmarking current programs against market data, conducting workforce demographic analyses, and establishing governance processes to ensure programs meet evolving business needs. Clients have realized direct annual savings of over £17 million through Capita's evidence-based optimization approach.

1. Reward and Benefit programmes in this post-recession world suffer from stratification –
layer after layer building up over time until the true origin of your approach and policies is lost.
Lack of funds, reduction in demand and other business
priorities have all conspired to leave some employee
propositions in need of wholesale review.
Surveys are a good starting point but they only tell you
what people say or think they would do – not what people
actually decide to do when given the choice.
This is where we are different.Thanks to Orbit, our own
benefits technology, we hold over a decade of actual decisions.
Over 450,000 people use Orbit every year, meaning we
have data on over 10 million decisions a year.
As a result we know what people do when faced with
choice and we use this, combined with what they say they
will do, to give you true insight into the most effective
programme design.
Optimise is an approach that provides you with a data led,
evidence proven, strategic design. It removes the old habit
of adding rewards or benefits for the sake of simply
broadening an offering – after all refreshment rarely comes
in the form of more of the same.
This approach has helped our clients measurably increase
employee engagement and identify over £17 million of
direct annual savings.
Can you afford to be left behind?
The data led design revolution is here.
“…strong focus on understanding clients’ experience,
benefits structure and segmentation through the
use of data analytics… clear and transparent client
engagement, pricing, communication and smart use of
technology made Capita the judges number one choice
in this most prestigious of categories.”
Optimise
Delivering strategic excellence

2. Strategic Audit and Review
Your reward and benefits programme
is part of the fabric of your organisation.
It is vital that your people value what you
give them, that you understand the risks
involved in the effective functioning of your
programme and that it is optimised for
maximum return on investment.
With large sums being spent on reward and benefits
and with your most important asset – your employees –
at stake, it is imperative that you can prove and improve
return on investment.
Partnering with Capita Employee Benefits on a Strategic
Audit and Review of your reward and benefits programme
will give you the answers your business needs. We’ll help
you develop a long-term vision and provide a plan for
delivering real value to your business.
We work with you using a tried and trusted
four step approach:
Inventory
We will work with your HR team to perform an
inventory of your existing reward and benefits
package, give you clarity on design and cost
information, and highlight any technical issues.
Analysis
Using our market-leading Demographic and
Benchmarking Solution we will give you deep
insight into (i) your people, what motivates them,
and what benefits they value and (ii) real-time
industry and market benefit trends.
Workshop
At a face-to-face workshop we will play back our
analysis to you, gather your thoughts and your
own insight, and collaborate with you to inform
strategy design.
Strategy Report
Using the output of steps 1-3 we will provide you
with a comprehensive report that sets out our
findings. We will deliver a benefits strategy and an
implementation roadmap that is realistic, relevant,
and measureable.
1
2
3
4

3. We partnered with a large industrial conglomerate
to identify £3m in cost savings, achieved through
a transformation in how their benefits are delivered
and communicated.
£3m
saved
For a multinational IT firm of 1,700 employees in the UK,
we identified efficiencies of £5m over three years through a
combination of benefits restructuring, redesign and placement.
£5m
saved
Selected Benefits – want it vs take it
(from Capita Employee Insight Report and Orbit)
Say they want benefit when asked
Take benefit when offered but
not subsidised
Critical IllnessHealth Screen Dental Private Health Life
60%
50%
40%
30%
20%
10%
0%

4. Engagement Strategy
Year in, year out, industry surveys ask
questions on the theme of: “what could you
have done better to improve your pension
and benefit arrangements”. Year in, year out,
the resounding answer from employers is –
improved engagement.
A well developed and delivered Engagement Strategy will:
• Improve an organisation’s ability to attract the best talent
• Improve employee satisfaction and so support talent retention
• Improve retirement savings, help employees to achieve their
retirement goals and transition smoothly and happily from
the world of work to the world of retirement
• Improve benefit participation and so increase employee and
employer savings
Put simply, improving engagement improves business
performance and profitability.

5. Using the Strategic Audit and Review approach, tailored to communications and engagement, we use a four step process that produces
measurable improvements to your employee engagement.
Inventory
We will work with you to understand where
engagement fits within your business, how, what and
when you communicate. We seek to understand your
corporate communications framework:
• corporate communications structure
• brand guidelines
• tone of voice
Analysis
Using our market-leading demographic insight we will
know who your people are – age, location, gender,
education level etc. – as these all make a significant
difference to how they prefer to be communicated
with, and how effectively they absorb and respond to
communication. This will help inform:
• Tone of voice – friendly, formal, somewhere in-
between?
• Personalisation – speaking to individuals as
“an audience of one”
• Level of detail – for some, breaking information into
bite-sized pieces will significantly increase
the impact
• Media mix – a mix of media designed specifically for
each segment of your workforce, targeting individuals
in a meaningful and relevant way
Workshop
At a face-to-face workshop we will play back our
analysis to you and gather your thoughts and your
own insights so that we can collaboratively develop a
communication strategy personalised to the needs of
your business.
Delivery Roadmap
We will work with you to develop a delivery roadmap
that constitutes a coordinated series of campaigns
which meet the needs of your reward and benefits
strategy.
1 2 3
4

6. Governance
Investing the time, effort and money to
understand your workforce and set up
engaging benefit and reward programmes only
really adds value when they are constantly
monitored. By making sure your reward
strategy achieves the objectives set out and
remains fit for purpose you will be able to
demonstrate a return on your investment and
remain relevant to the employees you are
looking to recruit and retain.
Governance of your approach to benefits and the associated
strategy is absolutely crucial to its success. Our approach
includes an innovative Strategic Governance process, which
keeps you informed about your benefits programme.
We don’t just review performance and set a list of objectives to
review every six months. We will help you to plan ahead, align
key actions in your specific strategic roadmap to that of the
business, plot where particular events might impact on your
business and your employees, and set out a plan to achieve the
best results, while proving and improving return on investment.
We do this by considering four key areas:
Robust Process
We establish a clear Strategic Governance structure,
terms of reference and robust processes to support your
planning and decision making and to ensure successful
delivery of your strategic objectives.
Prove and improve return on investment
We define, measure and track core key performance
indicators to measure and continuously improve the
success of thereward programme.
Maturity Matrix
We use our innovative Maturity Matrix to continuously
and effectively measure progress towards your targets.
Demographic Analysis
We conduct regular workforce demographics reviews to
ensure that, as your workforce and your business changes,
so does your strategy.

7. A central tenet of our partnership is that we don’t stop at the
assessment phase or when a strategy has been formulated.
Every organisation changes, both in terms of its business
strategy and its people. A successful benefits strategy needs
to be monitored to ensure it is meeting your objectives in the
short and long term. This ongoing measurement and advice
allows for:
• Better alignment and monitoring of objectives to
business need
• Proving and improving your return on investment
• Clearly communicating progress to all stakeholders.
As part of the Strategic Governance process we conduct regular
workforce demographics reviews and Maturity Matrix reviews
to ensure that, as your workforce and your business changes, so
does your strategy.
The below example of the Maturity Matrix highlights the key
areas of reward and benefits that we will measure during the
Strategic Governance process.
Maturity Matrix
Key:
Target
Current state
Measure
Health management
Worldwide
Policy
Communications
Governance
Recognition
User experience
Strategy
Savings and retirement
Voluntary benefits
Benefits technology
Benefits administration

8. Benchmarking and Demographics
Many employers create reward and benefit programmes based solely on employee surveys
and market or sector trends. But in many cases your particular workforce may not be engaged
because the benefits lack relevance to them in terms of their economic priorities, family
situation or life cycle stage. This leads to poor return on investment.
Our Benchmarking and Demographics Solution provides
effective employee benefits market analysis. This will ensure
that the reward and benefits programme you offer is based on
up-to-date market analysis and current trends in employee
benefits, maintaining competitiveness and optimising benefit
costs against the value to your employees.
This Benchmarking and Demographics Solution combines
multiple data assets from our market-leading employee benefits
portal, Orbit, and uses advanced analytical tools to provide
real time, targeted and accurate analysis of what is currently
happening in the market.
Using a combination of data assets and the latest in
demographic analytics, we enable you to ‘know your employees’
to a depth that will transform your decision making.
We assess millions of actual benefit choices made by employees
and offerings by employers, combined with surveys, to build a
picture of current trends and competitive challenges.

9. It’s time to relate your reward and benefits
offering directly to your employees in a
much more cost effective, systematic and
meaningful way than previously possible.
Our Benchmarking and Demographic Solution will help you:
• Better understand what benefit choices are currently being
made in the market by employees and employers
• Make your spend more effective by only offering the level of
benefits you need to offer, based on market-wide analysis of
employee choices
• Understand the competitive market – not just in terms of your
sector but also the other competitors for your employees’ skills
• Help maximise satisfaction and retention by better fulfilling
employee needs through targeting benefit offerings
• Formulate and align benefit strategy to meaningful segments
of employees and make improvements to benefits
• Target benefits related messaging to reach specific
employee groups
• Base and justify strategic benefits decisions on current data
– not an out of date survey
• Identify groups of employees that warrant special attention
The largest impact on benefit selection comes about from marriage and children.
Child care vouchers
Partner critical
illness
Gym
Critical
illness
GAYE
Home
emergency
Life assurance
Partner life
Key:
Employees without
dependants
Employees with
dependants

10. Mergers and Acquisitions
Working with a major recently merged high street retailer
we have helped them integrate and harmonise their
benefits programme within 12 months on a cost neutral basis.
Cost
neutral
The way in which you manage the transition
of the talent in your business when you
acquire or merge with another organisation
is key to the success of the marriage. This
applies regardless of whether as a company
you are regularly acquisitive or acquisitions
are a once in a lifetime, game changing event.
Any merger or acquisition will inevitably touch nearly all parts
of your HR function.
The impact will vary from one company to another and will
be dependent on a number of factors, including: relative
size, similarity of practices between the two businesses, the
receptiveness of the acquired business and the degree of
integration required post acquisition.
Managing an acquisition takes time and can be a heavy burden
for the HR team. For some organisations, acquisitions are
a frequent activity, form a part of everyday life and teams
exist in-house to manage the acquisition and subsequent
onboarding. For other businesses an acquisition can be a life
changing experience and HR teams may not have the skills or
the bandwidth to cope. We have developed a flexible approach
to our acquisition support model so that we can support
organisations as much or as little as they need.

11. We ensure each element is assessed so that actions are proactively identified at the outset
of the project, rather than appearing mid project as distractions and roadblocks.
Remuneration and
remuneration practices
Benefits
(including pension)
HR policies
Working
practices
Contracts
Structure
and grading
Communications
and stakeholders
Change, culture
and engagement
Talent assessment
& redundancy
Systems and
processes
Workforce
Data and
Demographics
Exceptions and
special cases
The table below outlines the phases and key activities involved in the acquisition process.
Pre Acquisition Acquisition (Short term) Post Acquisition (medium/long term)
1. Acquisition briefing
2. Scope agreement
3. Data capture
4. Assessment
5. Fit and gap analysis
6. Key risks assessment
7. Acquisition strategy
8. Acquisition plan
9. Success measures definitions
1. Day 1 transition
2. Integration (or not)
3. Communication
4. Measurement
1. Medium / long term harmonisation
2. Communication
3. Realisation of talent acquisition
synergies
4. Measurement
Programme and Project Management
The suggested approach and observations highlighted
above are the accumulated result of having supported many
acquisitions over recent years, including one of the largest high
street mergers.
We also have the advantage of being part of a large, regularly
acquisitive business ourselves. Not only have we supported
business acquisitions for our clients, we have experienced
them as employees so can relate to the realities both as
professional advisers and as impacted employees.
We recognise that you may already have some of the
expertise you need in-house. We can work with you to
provide as little or as much support as you need. Our aim will
be to ensure that any resources we bring to the project work
closely and seamlessly with your own personnel.

12. To find out more, please contact
your Capita consultant or visit
www.capita.co.uk/employeebenefits
CL15009
Capita Employee Benefits is a trading name of Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited. Part of Capita plc. www.capita.co.uk. Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited
are registered in England & Wales No: 02260524 and 01860772 respectively. Registered Office: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.
Employee benefits CapitaEmployeeBenefits @Capita_EBCapitaEBCapita Employee Benefitswww.capita.co.uk/employeebenefits