Motability Operations employs c600 people in London, Bristol and Harlow. It is a privately owned business specialising in sourcing and delivering motoring services to disabled people. The business is part of a unique and successful collaboration of the public and private sectors. It offers customers suitable affordable cars, through contract hire and hire purchase schemes, payable directly through customers' mobility benefits.

Originally, the company offered its employees a benefits package that enabled limited flexibility around holidays and pension contributions. As the scheme was paper-based, there was a high burden of administration and this meant restricting employees to one opportunity to flex their benefits each year.
The objectives of the new scheme:

A new scheme has been in place since April 2004 and was further enhanced in April 2005.  Its objectives were to:

• Recognise and reward achievement, not age or length of service;
• Improve benefit choice;
• Recognise diversity of lifestyle
• Reduce the hierarchical approach to benefits and to be more inclusive;
• Provide employees with knowledge and confidence to take responsibility for their benefits;
• Improve administrative efficiency and management information available;
• Bring service delivery together through one platform and one benefits adviser;
• Ensure the new benefits package fitted the "flexible, friendly, and facilitating" culture the company had developed   as part of a wider organisational change programme. 

Following an extensive tender process, Motability Operations selected thomsons online benefits to act both as their adviser and technology provider.

During the feasibility study, a survey of employees showed: 92% wanted more choice over their level and selection of benefits; 86% wanted to vary their choices as they got older, and 82% wanted to change their benefits as their lifestyles changed; 62% had dependants which suggested they would particularly appreciate benefits targeted to their needs.  Employees were regularly consulted through an employee forum and team briefings before the launch of the new package, so that by the time it was launched they were familiar with the brand. 

To communicate the new scheme branded “myflex” Motability Operations decided to use images of their own employees on communications material to further enforce their “flexible, friendly, and facilitating” culture.

The new scheme was launched in April 2004 with a roadshow involving both HR and thomsons at all three sites.  Feedback from employees was very positive. Employees felt informed and enjoyed the level of flexibility and choice myflex gave them. Employees made their selections online using the branded website provided by thomsons online benefits.

The results: The core range of benefits which could be flexed up and down include: pension, private medical insurance, holiday, critical illness insurance and life assurance. Additional flex options offered include dental insurance, travel insurance, childcare vouchers, discounted roadside recovery membership, season ticket loans, gym membership and car hire.

Motability Operations succeeded in:

• Eliminating manual benefit administration processes;
• Enabling employees to make their benefit selections online, with choices sent electronically to the benefit providers;
• Introducing more opportunities to flex on a quarterly basis in line with lifestyle changes;
• Appointing one adviser to review and source their new benefits and to provide a technology solution to run them;
• Saving up to 30% on the premium of their private medical insurance, life assurance and critical illness by appointing thomsons as their adviser;
• Giving employees 24/7 access to a total reward statement;
• Boosting take up of flexible benefits from under 50% to 80%. 

Deborah O'Kelly, HR Manager at Motability Operations comments: ”We are delighted with the outcome of reviewing our benefits package and providing the online facility. This has driven not only efficiency savings from an administrative point of view but has also given us the opportunity to be more flexible.  Now we have the ability to change, update and review both the benefits and the way we communicate them at any time.” 

“Employees have 24 hour access to a one stop benefits shop where they can get all the information they need. They now recognise the true value of their package and realise that it is one of the best currently available in the market, for example giving all employees irrespective of their level in the business, private medical insurance. This has certainly impacted both our ability to attract and retain employees.”

“The effect of re-communicating and re-branding the scheme has also been marked.  Employees can now see that the total value of their remuneration package and it demonstrates the level of investment the business is making in its people.”

“As a HR function we have also benefited from working with thomsons online benefits as we are kept up-to-date with the latest developments and have access to benchmarked information.  For example we were promoting on childcare vouchers well in advance of the tax changes. This not only makes us more efficient but it also strengthens our credibility internally.”