Hobbs takes online flexible benefits to 900 retail staff with limited PC access

FLEXIBLE BENEFITS

Hobbs takes online flexible benefits to retail staff with limited PC access

Hobbs, one of the most successful fashion stores on the UK high street, has launched an innovative, online flexible benefits package for its 1,000-strong workforce, of whom 900 do not regularly use a PC at work.

It is thought that Hobbs, which is implementing the programme with Vebnet, is the first privately-owned UK retailer to adopt flex to attract and retain staff.

Hobbs operates 94 retail stores in the UK, Ireland and Jersey. Stores are standalone or concessions and they vary widely in size. Each store has between three and 35 employees, of which more than nine in ten are women. Hobbs encourages staff to be shopfloor-focused by limiting access to a PC.

Aims

Hobbs prides itself on being a market leader. The retailer wanted to retain the aspirational element of its brand and support its aim of becoming an employer of choice and had discussed its options with PricewaterhouseCoopers.  

“People are generally becoming more promiscuous with their employment options. There are lots of good retailers out there and while we usually attract quality employees, we wanted to show that working here is an excellent choice for them,” said Amit Chowdhury, Hobbs’ head of HR and training. “Flex is also a good retention tool and, although staff tend to be loyal, we wanted to acknowledge and reward this”.

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Pragmatic approach

Hobbs presented a challenge to the technology providers with whom it discussed the project, as it needed to deliver flexible benefits to 900 employees who do not normally need to use a PC, so standard web communications would not work. 

The 100 head office employees can now access the Hobbs Choices web site, and all 1,000 employees received a booklet which explains their Choices. The booklet asks each employee without PC access to call a help desk, managed by Vebnet, so they can ask questions and make selections over the phone.

Meeting employee needs

A secondary problem identified by Hobbs was that many employees simply had not thought about benefits. Hobbs combined focus groups with Vebnet’s experience so the entire package  was better tuned into employees’ needs. 

On top of the core benefits, three flexible choices are available:

  • childcare vouchers
  • Hobbs FlexPension
  • dental cover.

Hobbs plans to add more option to the menu in 2007. On top of this, a voluntary benefits programme offers travel, leisure, motoring, health and retail options.

Tax rules and legislation

A third challenge was to manage the implications behind the flexible programme, including the tax rules and legislation.  PwC project-managed this process, from the feasibility study, identifying suitable technology partners, planning the appropriate communications programme, to managing the tax clearance for the salary sacrifice scheme. 

John Harding, director in PwC’s human resource services group said: “Implementing flexible benefits in a retail environment presented a number of interesting challenges, not all of which were tax related. Hobbs decision to focus on getting the basics right, providing staff with the benefits they valued most highly, has meant that the flex scheme was able to be designed and implemented in a way that met the staff’s aspirations”.

Want to know more?

Vebnet specialises in the development, deployment and support of internet-based technology for flexible benefits and total reward statements. For more information contact at its London (tel: 020 7073 2710) or Edinburgh (tel: 0131 270 5500) offices. You can find Vebnet on the web at www.vebnet.com