Old jokes about ethical employers being like unicorns – rare, magical and often talked about but seldom seen – have become more than a tad dated.
Indeed, the mad scramble of employers wanting to demonstrate they are ethical is clearly part of an irreversible trend.
One popular way of achieving this is to attain Certified B Corporation – or ‘B Corp’- status, which involves being verified by non-profit organisation B Lab as meeting high standards of social and environmental performance, transparency and accountability.
What’s the fuss about?
Over 2,000 UK companies – more than double the number 18 months ago – have already signed up to this global movement which believes that the world’s most challenging problems can’t be solved by governments alone.
By harnessing the power of business as a force for good, B Corps aims to positively impact all stakeholders, and companies are made to realise they are dependent upon one another, and therefore responsible for each other and for future generations.
Our clients who proudly refer to B Corp status clearly feel they are benefitting from being viewed in a positive light by everyone from employees and customers to potential recruits and venture capitalists.
So, for any organisation wishing to stand out from the crowd, the rigorous application process could be worth considering.
Those wishing to qualify initially have to complete an online assessment and, if they receive a suitable score, undergo a review process verifying their claims. They also have to provide appropriate supporting documentation.
The assessment will not just consider the products and services supplied. It will focus on the entire operation, quantifying the positive impact being made in areas like the workforce, governance, the community and the environment.
Successful applicants, who must re-certify every three years, are required to integrate B Corps commitments to stakeholders into company governing documents and pay a sales-based annual fee.
Employee benefits implications
An important rule of membership, which does tend to fly somewhat under the radar, is that companies have to publish details of their employee benefits.
This is undoubtedly to the advantage of one B Corp certified client we are currently advising in this area, because it has a highly competitive benefits package.
Other clients thinking of applying for certification, on the other hand, may first wish to consider what they are providing in the way of employee benefits to check they are not falling behind competitors and to have reason to be proud of what they will be publishing.
The importance of this cannot be overstated because research has consistently shown that attractive employee benefits packages can be valued even more highly by employees than increases in salary. So those who lag competitors run a real the risk of employees jumping ship.
Fortunately, Chase de Vere is well placed to help here as we can offer benchmarking services based on extensive research across a number of sectors.
Inexpensive, and offering both qualitative and quantitative information, these can be just as useful for SMEs as for larger companies.
Keeping up with competitors
The danger of benefit packages being out of sync with competitors has increased significantly since the implementation of the government’s pension auto-enrolment regime because companies can no longer feel ahead of the game simply because they provide a company pension scheme.
Many employers therefore now offer health-related benefits like private medical insurance (PMI), income protection, critical illness cover, health cash plans or dental insurance.
To really gain a competitive edge in recruitment and retention, some now go a step further and provide everything from subsidised gym memberships to Cycle to Work schemes and menopause support.
We can establish exactly how your benefits package compares with those of competitors, discuss with you any upgrades we feel are needed, and help you implement them before you take the B Corp plunge.
As well as highlighting potential new benefits, we will ensure existing ones remain appropriate and have the most attractive cover levels and added-value features.
If you would like to learn more about the benefits of the B Corp membership or about how to ensure that your employee benefits package is competitive then please don’t hesitate to contact Chase de Vere.
The information contained within this article is for guidance only and does not constitute financial advice
Content correct at the time of writing.