What are the perceived benefits of the NHS?
UK residents benefit from access to the NHS (National Health Service), through which all received universal health care “for free”. In short, people don’t pay for medical care (although clearly it is funded by taxation). However, perhaps the “perceived benefit” of that is both unclear to most people in the UK, as well as of varying perceived value (depending on, for example, how often we need to take advantage of this).
This lack of clear and aligned perceived benefits amongst the actual beneficiaries of the system can and do cause problems at multiple levels, including in terms of allocating budgets and resources to best be of service. Put another way, if the value of something does not at least match the cost of providing it, then that is a system that will ultimately fail, so if someone doesn’t recognise the financial cost of something so as to equate to the value of it, again, failure is a risk.
So, a few years ago, a wise friend of mine came up with an idea. Quite simply, it was that every time anyone saw a doctor, visited a hospital or in any way used the NHS, they would receive a bill for the services they received, itemised and fully costed out. No, they would not have to pay anything, they would simply receive a bill, which would then have a final line item that would credit their invoice to zero and be called something like “paid by your taxes” or similar.
The thinking was simple. If someone received a bill for £100, £1000, £100,000 or whatever the cost was, plus (say) an annual statement of all charges allocated to them for services provided, they would have additional clarity on the value they received from the NHS.
Regular readers might recognise that this is the type of thought experiment around behavioural science that Rory Sutherland might have come up with. Indeed so, but tin this case this was a wise friend and mentor of mine in Scotland who put this forward to the Scottish Government, though clearly, they have not taken the idea further.
What is the perceived benefit of a civil service pension in Cayman?
Another example. In Cayman, all private-sector employees contribute 5% of their salary into a defined contribution pension plan, to which the employer matches the same amount. Both know exactly how much this is, as both pay this every month and receive payslips with deductions, pension plan statements etc.
However, the largest employer in Cayman, the civil service, has a different system. No civil servants receive any deduction at all from their salary, no notation on their payslip as to how much is contributed on their behalf to their pension plan, yet the Cayman Islands Government contributes, in addition to their salary, well over the 5% of salary that private-sector employers pay.
There is a gap here in Cayman, as shown by consistent and recurring complaints from some civil servants that their levels of pay are lower than the private sector for comparable jobs, yet I’ve never heard anyone say this having adjusted for the benefits they receive in terms of non-contributory pension plans and other benefits.
My sense is that Cayman’s civil servants do not truly perceive the benefit as they don’t see a deduction on their monthly payslips. Again, when the perceived benefit is less than the cost of providing it, that cannot be a good thing for the organisation bearing the cost.
Perks and perceived benefits
So, having outlined these two brief stories, my thought today is for employers and employees to seek to be clear on what benefits and perks they give and receive and the value they represent, both to the company and the employee.
Before we begin, one key starting point is that I suggest we consider a “benefit” to be something of measurable monetary value, as opposed to a “perk” being of less financially tangible value and in fact most often of different levels of perceived benefit to different people.
All of this is increasingly important in the world we now live in and will continue to live in as, sad to say, covid moves from pandemic to endemic. Sad though this is for the world, one of the positive changes is that we are and will continue to inexorably see a move to more flexible working arrangements for more and more employees. In short, the age of the set “9-5 in the office five days a week” workplace is a thing of the past.
So, from this, imagine an employee who now goes into the office three days per week (rather than five) and then can work from where they choose the other two days. One “perk” of this arrangement is that they gain back hours of time and energy from saving on two days of commuting. There is also an implicit financial benefit in them not having to pay for the commute.
Continuing with examples, we may also consider that many people do not have the luxury of a private office in their home set up with modern computer hardware, ergonomic chairs and desks etc, but are cramped into their bedroom or corner of the kitchen while (say) distracted by children, housemates or other people living there.
To some, then, working at home can be a “perk”, while to others it could be the complete opposite, a “negative perk” so to speak!
Third space and perks
Now, what if the company then offered staff the opportunity to take their two days per week working away from the office to work (at company expense) at a “third space”, say a coworking hub within fifteen minutes of their home?
Some may be well set up to work from home, whereas others would massively value the opportunity for that.
Yes, this would come at a cost to the company and would have perhaps no financial benefit, but it would be a “perk” for sure for many.
This is one example of the type of perk that more and more companies will start to offer, and in fact, with this one, the perceived benefit may even be higher for many employees than the cost of providing it.
What comes next?
I could continue, but one reason I write is to develop my thoughts, another to share what I learn. This is an evolving thought process for me and an evolving area in the world of flexible work.
I hope, for today, that this has spurred some awareness and thoughts for you too.