One of the benefits of segmenting benefits is that you can target scarce financial rewards at key people in terms of their recruitment or retention. For example, a relocation package can help attract someone with the right skills and experience for the business, while a private medical package and generous pension scheme might encourage them to stay.

Another advantage of linking benefit provision to level or seniority, is that this can further incentivise individuals to acquire the skills and experiences that the company is looking for in its senior roles. 

In addition, some senior people may like receiving benefits linked to status because it sends a message that they do a job that is valued by their company. While we may be reluctant to talk with about our pay, we may be happier to convey our success by parking a quality company car on the drive.

The drawback with segmentation is that some people who are unable to access these benefits because of their location, occupation or level may feel resentful, particularly if they know or think that those who do qualify for them already get paid more than them. Even if the benefit isn’t financial, some people who are not able to access that benefit may feel it’s unfair that some can. For instance, one kind of non-financial benefit is the ability to work flexibly. However, certain employees may not be able to enjoy this form of flexible working if they are employed in a job that is determined by fixed hours or location, for example, while their colleagues based in other parts of the company can.

Allocating benefits according to a certain set of criteria may result in some people perceiving that there is one set of rules for them and another for certain groups, leading to disharmony and poor productivity. To overcome this possibility Intuit can help company’s focus on the potential gains that each benefit brings and then explore how these can be provided to all people.

If they can’t, then Intuit can help the company evaluate the potential positive and negative consequences of segmenting particular benefits, and in turn be prepared to ask difficult questions as to whether some benefits should be offered at all. They should also ask people for their view of the benefit proposition. For instance, those who receive certain benefits that are associated with their status or seniority might feel embarrassed about getting them.

Even if this isn’t the case, the company should think about what it can do to ensure that the workplace is as inclusive as possible by breaking down any feelings of ‘them and us’. For instance, if providing private medical insurance to all people is not affordable, what cost effective health and well-being benefits can the company provide to the rest of the company?

While there can be advantages from segmenting the people, it can be difficult to create personalised messages based on a small number of characteristics alone, and company’s run the risk of pigeon-holing people incorrectly based on some flawed assumptions about a person’s situation based on their age, gender or circumstances.

There’s also the fact that company may not collect the data or, if they do, it may not be in the format needed to create and target their communications.

A more pragmatic approach may be for the company to craft and provide similar messages to all people, by defining their benefit philosophy and principles (why the company offers benefits, and how they support the business culture), which ultimately leads to the benefit proposition being offered to their people.

In summary, people segmentation can present opportunities to target more effectively both benefits and messages. However, there are challenges with this approach in that it can cause resentment among those not receiving certain benefits and confusion if the segmented communication is based on incorrect data or false assumptions. To get over these problems, Intuit can help company’s offer a benefits proposition that not only appeals to a wide range of people but also offers them flexibility so that people can select those benefits that best meet their needs.

To help people select their benefits, company’s need to have an education and communication approach that helps people understand the choices on offer and the various possible consequences arising from their benefit decisions. By adopting a more personalised approach to benefit provision and communication, people should be better able to value and appreciate the benefit package offering and company’s should see this reflected in their business and people metrics.