Transforming employee benefits: A shift towards wellbeing and flexibility in fmcg

Fmcg suppliers “have had to recognise that employee engagement is a critical component of workplace productivity, employee retention and, ultimately, profits”, says Fiona Kendrick, former chair and CEO of Nestlé UK&I, and a judge in the Employer of the Year category at this year’s Grocer Gold Awards earlier this month.

As a result, says Steve Simmance, a leading headhunter, supplier benefits have “seismically changed, geared more towards physical and mental health, family and time off, rather than joining the car club or bigger pension contributions”.

Among the best programmes in the Employer of the Year shortlist, what impressed Ged Futter, another judge and founder of The Retail Mind, was not just what the larger companies are doing, but what smaller ones are offering. “The entries showed what’s possible, even with a limited budget. That was what I found most encouraging – it was not a case of just throwing money at a problem, it was really thinking about what will make a difference.”

Debi O’Donovan, director of the Reward & Employee Benefits Association, says she’s seeing many employers particularly worried about the financial stress on their staff, so they’re focusing on programmes that help workers manage their money.

“Less can be more if handled well,” she says, if the HR programme offers initiatives that are “robust, well communicated and truly appealing”.

Read more:

• Hear from winners and see highlights of The Grocer Gold Awards 2024

• Grocer Gold Awards 2024: Finnebrogue is Employer of the Year (Supplier)

• Sainsbury’s wins Grocer of the Year for the first time in two decades

• Roisin Currie: the most humble of Grocer Cup winners

Arguably the biggest change in the past few years, is flexible working, says Futter. “There are some dinosaurs (usually run by middle-aged white men) who believe working from home is for the workshy, and presenteeism is still part of their DNA, but they’re wrong. People are recognising that work is not everything – that it’s part of what we do, rather than all-consuming.”

With more focus also on diversity and inclusion programmes to attract and retain a wider range of staff, O’Donovan also notes that “some suppliers are boosting the number of older women in the workplace through putting in menopause support and extra paid time off for those who are caring for elderly adults.”

Simmance can see already the benefits in the “increased volume of older women right at the very top, extending their careers, which is fabulous. Dare I say it but women are better workers in the workplace, which may even be driving the more empathetic approach.” And it’s important too, because more generally he believes recruitment is “increasingly ageist” among fmcg suppliers. “It’s awful over the age of 40.”

“Ageism is a topic no one is really grasping. At worst, HR is the most ageist, because it doesn’t work with their successful planning or their ability to move people round an organisation. The most enlightened get the limitations. And I have to credit the supermarkets because they really get this.” But that’s for next week.

The suppliers going the extra mile for their employees

This year’s Grocer Gold Awards highlighted the lengths retailers and suppliers are going to to recruit, retain and support staff. Our two-part series starts with suppliers

Winner: Finnebrogue

Northern Irish meat supplier Finnebrogue is growing fast. In the past five years alone, it’s added 900 new employees. It’s also had to adapt to a competitive and challenging local job market and has thus focused on the dual challenge of attracting talent and retaining valuable team members.

To do so, the company has introduced a meticulously crafted programme of career pathways and development opportunities. This includes collaborations with Queen’s University Belfast and various professional bodies on employee development, a programme tailored to people returning to the workplace after an extended break, and working with charities to provide employment opportunities for neurodiverse adults and people with disabilities.

Finnebrogue also helped tackle cost of living challenges with two inflationary pay increases and relaunched its Family Leave Policy in late 2023, providing enhanced leave and pay benefits for maternity, paternity, child loss and IVF. These initiatives and many more have led to a 22% reduction in staff turnover, a 43% decline in absenteeism, and a 31% increase in job applications.

Laura Robinson has been one beneficiary, landing a place last year on the Finnebrogue Executive Leadership Programme. “Being afforded the time and opportunity to focus on my leadership style, step back to listen, challenge new ideas, and disrupt habitual patterns, has been invaluable,” she says.

Finalist: Huel

At meal replacement brand Huel, where staff numbers have increased rapidly from 170 to 300, the focus is on unity, transparency and flexibility. Bi-weekly all-staff meetings see the CEO present an “ask me anything” session. And outstanding employee performance is celebrated company-wide.

The brand has also increased holiday entitlement to 30 days a year, introduced ‘Flexible Fridays’ where employees are encouraged to finish working at midday on Friday to enjoy a longer weekend, and brought in an initiative allowing all employees to take two weeks a year to work remotely from anywhere. This comes alongside improvements to parental leave, support services for adoption, pregnancy loss and miscarriage, a free on-site gym, and free, unlimited one-to-one therapy (in-person and virtual) sessions for all employees.

“Huel’s flexible working hours, including ‘Flexible Fridays’, have been game-changing for my work-life balance and productivity,” says Natalie Stanton, head of UK retail sales.

“This time [on a Friday] can be used for upskilling, doing a course, coaching or therapy. All employees have access to free, unlimited therapy from Self Space. This year, I put my Friday afternoons to use training for the London Marathon for Shelter.

“Many companies talk about culture and work-life balance, but one of the most refreshing differences I’ve found at Huel is that people actually practice it. The business really seems to understand the importance of staying healthy and active and the benefits this has on mental health and productivity.”

The team at Glanbia Performance Nutrition, where health initiatives include a ‘step challenge’ and fitness classes

Finalist: Glanbia Performance Nutrition

Perhaps unsurprisingly for a sports nutrition and weight management business, Glanbia Performance Nutrition places much stock in the link between physical and mental wellbeing and has introduced several initiatives to boost both. This has included combating the sedentary nature of desk-based roles with a “step challenge”, a padel tournament, and fitness classes every Monday for the London office.

“Finishing Monday with a group workout not only boosts energy, it also strengthens my connection with colleagues,” says Laura Hoggins, chair of the UK engagement team.

But some of the sprints are mental. The company has embraced the “sprint and recovery model”, which emphasises the importance of balancing periods of intense work with necessary recovery times on an hourly, daily, weekly, monthly, quarterly and annual basis.

Glanbia also partners with Psalt to recruit talent from different backgrounds, ensures each employee has an annual personal wellbeing objective, and asks the leadership team to role model the company’s smart working policy to encourage true flexibility and balance with other life priorities.

“Seeing our leaders model work-life balance has really made a difference,” says Ryan Lucas-Lowther, fitness community manager.

Finalist: Arla Foods UK

Arla employs more than 4,000 people in the UK, and the dairy Co-op has engendered more ‘moments’ where it can seek employee feedback, including surveys, listening groups, health and wellbeing champions and health kiosks.

These have informed a healthy hearts and minds push that saw an additional 50 mental health first aiders trained, blood pressure monitors being placed in all sites, as well as sponsored walks, a football league and even dragon boat races.

Arla has also focused on inclusiveness, resulting in far-flung colleagues, customers and communities visiting and working on its farms, and its farmer-owners being included in internal communication.

“Introduction of the health kiosk and blood pressure monitors has been a great initiative for us. Even the sceptics regard it as positive,” says Matthew Press, 60, an Arla tanker driver.

“It’s made me consider if I’m getting enough sleep, drinking enough water and remember to  check on my diet and fitness.”

Finalist: Heck

Based in Bedale, North Yorkshire, Heck is a family-owned sausage, burger and mince brand. And nothing speaks to its old-school family values quite like its approach to the lunch break. At midday every day, production is paused in the factory so everyone can stop at the same time for lunch. And that lunch – usually a soup, hot main course, salad bar and dessert – is provided free of charge every day to all staff.

The perks don’t end anywhere near there, either. Heck has a free on-site gym, as well as on-site dog care, meaning dog owners can bring their pet to work and even take them for a walk with colleagues on their lunch break.

“Being able to bring my dogs to work is great,” says sales director Jamie Keeble. “I know they’re in good company when I’m back at my desk, as there’s usually at least three other pups for them to hang out with. It makes being a dog owner so much easier.”

Heck is also keen to provide opportunities for staff to help the local community. Last year, there were cook-ups, yoga sessions and family fun days, including a cooking demo from chef Chris Baber. There’s also a weekly soup kitchen in a local village hall, with staff volunteering to serve soup, bread and cakes made by Heck’s kitchen staff. Such initiatives are “great for staff morale”, says Claudia Anderson, who heads up Heck’s customer service. “Volunteering at the soup kitchen is a gorgeous addition to my week. It’s one of those things which leaves me feeling really grateful and positive.”

And it’s paying off, with a retention rate of 91.4%.