Ucha

Raison d’etre [rey-zohn -de-truh; French re-zawn -de-truh]

Pronounced rey zohn de truh, this is an English word of French origin that means a thing’s reason or justification for being, or existing

In December 2021, we set out to reimagine the future of work benefits by building a platform for gig economy workers, and that’s how 

Basically, anybody that does not work in an office can get access to basic benefits like insurance, healthcare, pension,and loans, at a small monthly fee.

We have been on that journey ever since, and it has been a very tedious and interesting one.

So let’s talk about why we started doing this thing, and what exactly it is.

Is a question my co-founders and I have gotten countless times, from different people, all asked with the same level of genuine curiosity.

I have given this answer so many times, over and over again, that it makes sense to crystalize and articulate it in written words.

Surface level; it is ridiculously expensive to pay out of pocket for an insurance need. The price difference between paying for a healthcare plan out of pocket, and having an insurance plan can be a lifesaver.

For example; in Lagos State Nigeria, the average nighly admission fee in a hospital is around $50. Meanwhile, an annual insurance plan of $25 can cover this same cost for a year, with added benefits up to $2,000.

On a deeper level, beyond the price point, like every problem, deciding to work on this one was a mixture of personal pain points and data-backed market research.

Simply put, this is a genuine problem, not just in Nigeria, or Africa, but around the world.

We started out focusing on gig economy workers that did not work in offices; Uber and Bolt drivers, software developers, freelance creatives, hair stylists, contract staff, and everyone that did not receive added benefits from where they work.

These people are divided along two lines; those who cannot afford to pay for these benefits individually, and those who can, but cannot afford the time and inconvenience of sourcing these benefits individually.

We talked to 250 of these people; 96% of them would pay for a plan that allows them to get access to these benefits in one place.

Of this number, 25% did not care about the price point it came in at, while the other 75% swung between affordability and ‘mid-range’ price points.

These people are able to come on Flance, and purchase a moderately priced monthly plan, or design a bespoke one that fits their needs and budget; amazing stuff.

The aforementioned is already a beautifully carved out market segment by itself, but there was another one ripe for the picking; tech startups and small businesses.

At first glance, these people are antithetical to the initial market segment mentioned, but upon closer look, not so much. I will tell you a story why(not), a very short one;

For the last 8+ years, I, Victor Ekwealor, have worked with tech startups in Africa, and as at the end of May 2022, my pension balance is currently ₦112, 480.40 ($272). And this is the experience of the bulk of employees in tech startups and small businesses.

I used to be very upset at this benefits discrepancy until I got a look on the employer’s side and figured out that this isn’t malicious; it is extremely difficult for a small business to provide employee benefits.

In startups and small businesses, everyone is too busy with multiple roles to take on the arduous task of sourcing and arranging benefits for employees. It is what it is.

The global economy is hard; inflation is at an all time high, and costs of living have skyrocketed with it. Most startups, especially in developing economies, are unable to match compensation with these rising costs, and are also incapable of mustering the financial war chest to retain their talents.

And this is where Flance comes in; to help employers figure out how to sustainably ensure their employees are not left out in the cold, or lost.

“Two billion workers — representing 61.2% of the world’s employed population — are in informal employment.”

Women and Men in the Informal Economy: A Statistical Pictur

The aforementioned is a 2018 study by the International Labour Organisation (ILO); a United Nations’ (UN) agency charged with international labour practices. In short, there are more people that are formally employed than not, and that is not changing anytime soon.

These people have jobs, but thanks to different employment laws across the world, most of them are not classified as full employees. A big example of this is how Uber and Bolt drivers are not considered employees of either companies.

Regardless of these classifications, these workers have adult responsibilities and resultant needs that would be catered to by employment benefits.

On the other hand, the nature of work is changing drastically

 effect of the pandemic, everyone has taken a very pragmatic approach to their careers, and this has resulted in massive resignations and switches; cue the 

, and all similar movements around the world.

; this means that more people are going to leave their structured jobs and, subsequently, the security those jobs provide by way of benefits.

Employers will have to fundamentally reimagine sustainable ways to keep their employees, without breaking their back, and their banks.

That, my dear reader, is where Flance comes in again.

Unlike the first question, there are not a lot of people asking this. I just imagined that if you got this far, it’s only fair you know the exactitude of how this product will work.

It is really simple; users sign up, get KYC’ed and then for a small monthly fee, get access to a wide range of benefits; healthcare, insurance, pension, loans, etc.

The plans are structured in two ways; moderately priced pre-curated options, and the ability to create a bespoke plan for yourself that fits your needs and budget. Simply put, you can pay for plans we have made, or create your own.

We are just getting started and gearing up for the journey ahead.

Thanks for getting to this point,
Victor.

Raison d’etre

Victor Ekwealor 

What exactly is ‘employee benefit’ and what does it constitute?


This is question that we get from many business owners and startup founders who are not exactly sure what it is.

The problem is not that they do not know per se, it’s just that it means so many different things that it seems to not mean anything in particular, so let’s attempt a definition and explanation.

Firstly, like the name implies, employee benefits, perks, or rewards are, unsurprisingly, benefits for employees.

The most succinct definition is from Wikipedia, and it says that “

Employee benefits and benefits in kind, also called fringe benefits, perquisites, or perks, include various types of non-wage compensation provided to employees in addition to their normal wages or salaries

In essence, any compensation given to people in active employ of any sorts that is different from their wages can be termed employee benefits, perks, or rewards.

The scope of employee benefits is extensive, covering multiple facets of the employee experience.

Some of the most popular ones that you may be familiar with are grouped under the umbrellas of health and wellness, financial incentives, retirement plans, and professional development. Collectively, these offerings contribute to fostering a sense of support and appreciation beyond the transactional nature of employment.

Now, let us elaborate on the aforementioned umbrellas a bit and get an even deeper understanding of what they entail.

There is a popular Latin saying we are all familiar with, “mens sana in corpore sano” which translates to “a healthy body can sustain a healthy mind”, or as we popularly know it, “a healthy mind is a healthy body.”

This means that health and wellness are understandably the most crucial of all the employee benefit segmentations that exist. Benefits in this category are typically comprehensive insurance coverages for medical, dental, and vision.

Additionally, wellness programs go beyond traditional healthcare, incorporating initiatives such as fitness programs, mental health resources, and preventive health measures. Mental wellness programs have become even more popular with the increase in mental health conditions, which the World Health Organisation(WHO) has increased by 25% since the pandemic.

Employee benefits extend into the financial realm, providing a sense of security and stability. The financial part of benefits are usually the most popular and easiest as there are usually no complications with them.

Retirement plans, like 401(k), pension schemes, and retirement savings, and the different names they are known by across the world, offer employees opportunities to plan for their financial future.

Employee Stock Options (ESO) or equity participation are financial plans that align employees with the overall performance of the organisation and have become very popular over the last few years, especially with startups. These financial benefits not only support individual well-being but also cultivate a sense of commitment and loyalty to the organisation.

In line with bolstering mental health and ensuring work does not become too much drudgery, a lot of initiatives now exist to accommodate a harmonious work-life balance, employee benefits often include provisions for flexible work arrangements like hybrid or fully remote work options.

Paid time off (PTO) allows employees to take vacations, holidays, and personal days are also quite popular in this category. Generally, they accommodate the diverse lifestyles and responsibilities of employees.

Investing in the continuous learning and development of the workforce is a crucial aspect of employee benefits. Like the earlier mentioned health and wellness options, professional development can tie in directly to the business’ bottomline.

Training and development programs, encompassing workshops, seminars, online courses, and mentorship initiatives, contribute to the enhancement of employees' professional skills. Online learning platforms like Udemy, Coursera, Pluralsight, among others are a staple in this category.

These opportunities not only support individual career growth but also ensure that the organisation remains productive through its workforce.

Recognizing the significance of family life, employee benefits may include family-friendly provisions. Family leave, whether for parental or caregiver responsibilities, ensures that employees can navigate significant life events without compromising their professional standing. Child Care assistance, including support for childcare expenses or on-site facilities, alleviates the challenges faced by working parents.

Whether you call them employee benefits, perks, or rewards, we have established that they have different meanings in different contexts. Apart from the aforementioned, there are a ton of things that can qualify as benefits; lunch, massage, acupuncture, etc.

The next question is, now that we know what they are, what is a strategic and thoughtful approach to guide implementing benefits?

Again, like the definition, there is no straightforward answer, but here’s a framework to think about it;

A clear understanding, identification, and articulation of an organisation's overarching goals and values can help with figuring out what perks or employee benefits to employ. An organisation that values and promotes work-life balance would focus more on benefits in that category.

Acknowledge the diversity within the workforce and tailor benefit packages accordingly. Providing a range of benefits allows employees to select options that resonate with their individual needs and preferences.

A lot of employee benefits and perk platforms come as a package deal and do not allow customization. Flance Business is one that allows employers to choose individual benefits tailored to different users.

Benefits are useless if and when they are not used, so transparent and regular communication about available benefits is imperative. This is especially true for organisations that are just starting a culture of added benefits and incentives.

Employees should be well-informed about the full spectrum of offerings through channels such as emails, company intranet, and informational sessions.

There are countries where certain employee benefits are mandatory and employers can not afford to hold back on them.

Stay informed about local, state, and federal regulations governing employee benefits in your region. This legal requirement ensures compliance, mitigates risks, and upholds the trust of employees.

While it’s good to keep employees motivated with these benefits, there are a lot of things that do not produce desired results for a myriad of reasons and the major one being that employee needs and preferences evolve over time.

Regularly assess the effectiveness of benefits programs and be open to adapting them to align with changing circumstances and industry trends.

During evaluation sessions, feedback should be actively sought from employees regarding their satisfaction with existing benefits and any suggestions for improvement. This engagement not only ensures benefits remain relevant but also fosters a culture of transparency and collaboration.

Finally, while we now agree that the definition and naming of employee benefits are contextually different, if you have come this far, you more likely have a framework to strategically implement benefits in your organisation.

Navigating the complexities and competitiveness of the modern workforce can be quite daunting at times.

By recognizing the intrinsic link between employee well-being and organisational success, employers can leverage benefits as a strategic tool, ultimately fostering innovation, productivity, and a positive corporate culture. In the ever-evolving landscape of the modern workplace, a clear understanding of employee benefits positions organisations to cultivate environments that attract, retain, and nurture top talent.

Understanding employee benefits for businesses 

Tayo

Flance, an employee benefits company serving Africa’s gig economy, has announced a collaboration with leading ride-hailing platform Bolt that provides Bolt drivers in Nigeria with access to discounted healthcare plans. Through this collaboration, Bolt driver-partners can take advantage of Flance’s innovative technology and access high-quality, affordable healthcare services.

Bolt drivers will be able to receive preventive care, telemedicine services, and access to a network of healthcare providers, all while keeping costs low.

“The gig economy in Africa is growing at an average of 20% annually, and it is estimated that by 2030, there’d be 80 million gig workers in Africa. This collaboration is in line with our mission at Flance to help this emerging demographic access quality, affordable, and inclusive benefits,” said Victor Ekwealor, CEO of Flance.

“By collaborating with Bolt, we are able to bring this security to even more drivers in need and help ensure that they can access the healthcare they need to stay healthy and on the job.”

For Bolt drivers, the perks of this collaboration include physical and virtual doctor consultations, preventive care services, discounted rates on lab tests, prescriptions, and many more.

The drivers will also receive exclusive discounts on other Flance health insurance plans, as well as access to a range of health, wellness, and financial benefits including loans.

“At Bolt, we are dedicated to providing our driver-partners with the support and resources they need to succeed and live better,” said Ireoluwa Obatoki

 Regional Manager for West and North Africa at Bolt. “This collaboration with Flance is a major step forward in that commitment, and we are proud to offer driver-partners access to affordable, high-quality healthcare services.”

The collaboration will initially be available in Nigeria, with plans to expand to other African cities in the near future.

Flance | New work by Flance

New Work by Flance

Raison d’etre

Understanding employee benefits for businesses

Flance partners with Bolt to provide drivers with healthcare