According to a new study by employee benefits provider Zest, almost half of employees (56%) are willing leave their current jobs if they receive a better benefit package.
Zest’s Employee Benefits Report highlights the importance of employee benefits for retaining and attracting talent.
Only 39 percent of employees think their current benefits package is a good value. The research shows that only 39 percent of employees believe their current benefits package is a good value for money.
The Employee Benefits are Key to Job Choices
The report shows that employees are increasingly relying on benefits like healthcare and pension contributions to make decisions about their employment. Nearly two thirds (63%) say that benefits at work are more important to them when deciding on a new job. The number increases to 72 percent for younger employees between 18 and 34, showing that benefits are important in attracting young talent.
Many employees find that their current benefits packages are inadequate, despite the importance of these packages. Two-fifths (41%) of employees believe that their current benefits package is inadequate. This number increases to almost half (47%) for those between 18 and 34.
The study shows that despite recent drops in inflation, employees still prioritize financial support in their benefit packages over wellness perks. The most desired benefit is private medical insurance, followed by higher pension contributions. This is what 32 percent of employees prioritize. One quarter of employees (24%) also want employers to contribute to household energy costs, reflecting the ongoing pressure on household finances.
Employers do not always match their benefits with the expectations of employees, even though financial benefits are highly demanded. While 32 percent of employees desire higher pension contributions, businesses only increased them by 12 percent in the past 12 months. In the same way, mindfulness programmes (which are only requested by 9 percent of employees) are not as popular but 14 percent of companies have implemented them in the last year. This disconnect between employee demands and what employers offer suggests that businesses need to refocus on their benefit strategies in order to better support their employees.
Benefits Packages: A Retention Tool
Many businesses struggle to increase salaries as rising living costs continue impacting employees. Zest’s study shows that 19 percent of firms cannot afford to increase salaries. Employee benefits packages are a way to help organisations support their staff and stay competitive on the talent market.
Matt Russell of Zest commented Organisations that fail to meet their employees’ needs could face a crippling talent drain unless their benefit packages are enhanced.
Employees place increasing importance on the financial support they receive from their employers and won’t hesitate to change jobs in order to obtain what they want. Employers need to ensure they are not only increasing their investment in benefits, but also delivering enhanced value through implementing what employees want.
These firms can have a competitive edge as they can leverage their generous and targeted benefits to support talent attraction and retention which will help productivity and business performance. These companies can have a competitive advantage as they can use their generous and targeted benefit packages to support talent retention and attraction, which can boost productivity and business performance .”
