According to a recent study by talent solutions company Robert Walters, 80 percent of UK and Irish professionals do not fully take advantage of workplace benefits.
The findings of the 2024 Benefits Guide reveal that there is a growing gap between employers and employees in terms of benefits usage and satisfaction.
The survey of over 3,000 professionals highlights a major issue: While workplace benefits are seen as crucial to employee satisfaction, loyalty and productivity, most employees do not feel that they are getting the best out of their benefit packages.
The overall benefits plan is a source of dissatisfaction for 35 percent respondents.
Communication Falling Short
The research highlights the importance of communicating benefits effectively. Only half of professionals are satisfied with the way their employer communicates their benefits. These range from financial incentives like pension contributions, annual bonuses and wellbeing initiatives such mental support or private health insurance.
Chris Eldridge is the CEO of Robert Walters UK & Ireland. He warns that poor communications can have serious consequences for employee retention and engagement. He said that employers’ failure to communicate and offer attractive benefits can impact their ability attract and retain talent as well as reduce employee productivity and engagement.
Only 21 percent of the employers surveyed claimed to understand fully what benefits are most important to their employees. This disconnect could indicate that some organisations are offering benefits that don’t align with the needs of their employees.
Benefits and Retention
According to the research, more than half (54%) of professionals believe that benefits provided by their employers are an important factor in their loyalty and satisfaction at work. According to 41 percent of respondents, workplace benefits contribute positively to work-life balance.
Only 45 percent of professionals are satisfied with their benefits package, despite a clear correlation between benefits and retention. Eldridge noted that the benefits package could have a significant impact on employee retention. “It is concerning that less half of professionals are happy with their benefits package given its influence on loyalty and willingness to remain with a company.”
Many professionals said they would consider changing jobs if the position offered a better package of financial benefits, even if their base salary was lower.
Maximising employee happiness and performance
Nearly a third of respondents agreed that the benefits provided by their employers have a positive effect on their performance at work and their productivity. Employers may miss out on better results because a large portion of their workforce does not use these benefits to the fullest.
Eldridge stressed that benefits are a crucial part of any successful remuneration plan. He said that ignoring benefits or not investing in effective options could hurt employee satisfaction and overall business performance.
How employers can improve benefit packages
Eldridge has outlined four strategies that employers can use to close the gap between benefits they offer and what employees value.
- Clarify Benefits– Employers should clearly communicate benefits to employees, particularly complex financial options like pensions and stock options that can have an impact over the long term.
- Leverage employee feedback– Gathering insight from employees on what benefits they value can help employers improve their packages and better meet the needs of their workforce.
- Measure success– Regular surveys and checks can assist employers in assessing the effectiveness of benefits and making improvements where necessary.
- Customise benefits– Offering employees the ability to customize their benefit packages according to their individual circumstances can increase employee satisfaction and engagement.
Companies that understand and improve their benefit offerings will be in a better position to retain and engage top talent as workplace expectations continue to evolve.
