Costs are rising, but that doesn’t mean benefits have to suffer. You just have to be innovative. That’s the takeaway from a fireside chat at From Day One’s July virtual conference.

Featured speaker Marina Vassilev, the VP and head of total rewards and performance for North America at Schneider Electric, shared how the company has shifted its focus to offer more targeted benefits to its global population of 150,000 employees. Karl Ahlrichs, HR columnist and consultant, moderated the discussion. 

Vassilev acknowledged that her job title is quite unique, but added that having employee performance and total rewards in the same space offers unique possibilities. “It is typically an area that is managed by the talent colleagues. It has given us some great opportunities and insights into how managers and employees can be supported with development and performance management discussions, and how we can plug in our benefits and increase utilization as part of the talent development cycle,” she said. 

But the cost of benefits continues to be a barrier. Especially in the past five years, there have been significant fluctuations. Like many companies, since the pandemic they’ve experienced ups and downs. “And we continue to see rising medical and pharmacy costs today, primarily driven by high-cost claimants, GLP-1 medications and emerging gene therapies.” 

Despite these cost pressures, Schneider Electric is looking for ways to provide a competitive offer to attract and retain top talent. “We’re trying to balance the cost between some of our design changes that we’re implementing with employees, with how we work with vendors, and how we negotiate to ensure that we’re delivering ROI and cost savings.”

One of the most popular innovations to emerge from the pandemic era at Schneider Electric is the Recharge Break, a self-funded sabbatical program introduced in 2021. “It started as a way to encourage people to take time off when they really needed it,” Vassilev said. “Now, it’s a well-loved benefit that helps us manage both employee well-being and business demand.”

Here’s how it works: Over a minimum of three years, employees can contribute to a Recharge Break fund. Once their balance hits a certain threshold, they can take six to 12 weeks off with pay drawn from their own contributions, she says. 

The benefit has not only been embraced internally—it’s gained attention externally too, with viral Instagram posts celebrating the program. And now, Schneider is exploring ways to make it even more flexible. Ideas include allowing employees to use the time in smaller chunks or pairing it with PTO for shorter, more frequent breaks.

Another area of innovation at Schneider Electric has been employee well-being, though, as Vassilev pointed out, progress doesn’t always come easily. “In the last few years, we’ve hosted a lot of digital events,” she said. “We started with a Well-Being Week in North America, which eventually evolved into Well-Being Check-In Months. There was strong vendor participation, educational sessions, and even rewards for employees who got involved.”

While the initiative generated positive buzz, the impact wasn’t quite what the company hoped for. Preventive screening rates under the medical plan increased, but only by 1 to 2%, short of Schneider’s goal of 5% or more.

Now, as more employees return to the office two to three days a week, Schneider is shifting back to in-person engagement. That includes partnering with on-site teams to promote healthy food options, encourage physical activity, and bring vendors in for enrollment fairs and face-to-face information sessions. “We lost that communication channel during the pandemic,” Vassilev said. “And even after, we didn’t get the ROI from virtual options. But now our offices are full again, and it’s time to re-engage in a more hands-on way.”

Benefits are tailored to meet employees where they are in life and in their careers, says Vassilev. That approach, paired with targeted communication, is key to higher engagement and satisfaction. “When you have a robust benefits offer and you communicate it differently to specific employee populations,” Vassilev said, “you’re targeting the benefit in the way that they’re going to use it—you get very positive feedback.”

For example, Schneider expanded its backup care through Care.com to include not only children but also adult dependents and pets. “We’re seeing different employee groups react to it differently,” she noted. “We communicate it in a targeted way, and we have significantly increased our utilization.”

Financial well-being benefits are also segmented by need. Late-career employees get access to Certified Financial Planners through Schneider’s 401(k) provider, while early-career and blue-collar employees use a vendor better suited to one-time financial questions. “Sometimes we need to be willing, as benefits professionals, to acknowledge that different vendors are going to target different employee segments, and that’s the right solution.”

One of the company’s most impactful tools is its Total Rewards Survey, introduced last year to measure employee sentiment on compensation and benefits. According to Vassilev, the results often provide more clarity than traditional benchmarking alone.

The company uses employee input to determine where to invest. “There will be some benefits where we offer a better package. In other areas, we are not as strong, and we cannot be strong on all of our benefits. So we leverage the employee voice to decide where we’re going to invest.”

This strategy has real impact. For example, when Canadian employees indicated dissatisfaction with the massage therapy benefit, even though market data didn’t flag a concern, the company made changes. “It’s worth investing because we’re going to address the employee sentiment.” 

The survey also allows for deeper analysis. “We were able to see results by high performance and high potential,” she said. Newer employees tend to view benefits more favorably than tenured ones, likely due to comparisons with previous employers. Generational differences also emerged, reinforcing the need for flexible, responsive benefits that evolve with the workforce.

Ultimately, the company’s approach reflects a shift toward more personalized, data-informed decision-making.“Employees react positively when they see us make enhancements based on their feedback,” Vassilev said. With insights from across geographies, demographics, and performance levels, the company continues to shape benefits and compensation to support both its people and its business goals.

Carrie Snider is a Phoenix-based journalist and marketing copywriter.

(Photo by NicoElNino/iStock)