Many companies offer employee benefits to encourage the best people to join their team, or maximise the chances of encouraging existing employees to stay. But are the benefits you offer as effective as you think they are?
Recent research from employee benefit specialist insurer Unum found that what employers think of their company perks differs wildly from what employees think. For example, more than two thirds of employers believe their benefits package has a positive impact on the overall wellbeing of employees. But less than a third of employees agreed.
Similarly, 75% of employers who were surveyed think their workforce’s health and wellbeing is good, while just 66% of employees agree that the benefits package has allowed them to proactively look after their health and wellbeing. Just over a quarter of employees believe their benefit package has helped to prevent health issues from worsening or becoming chronic.
A disconnect between employer and employee views
This research shows a relatively big disconnect between the wellbeing support that employers believe they provide and how employees perceive it, said Liz Walker, chief operating officer of Unum.
She added: “It’s often the case that benefits are recognised and highly regarded by employers, but they struggle to communicate these effectively, leaving employees unaware or misunderstanding the true value they offer. This gap can create a ripple effect, impacting morale, engagement and turnover, then ultimately the overall success of a business. Clearly, employee benefits packages need to go beyond just good intentions.”
Businesses must understand the power of a “comprehensive benefits package — as well as the negative impact of one that doesn’t meet employee expectations”, Ms Walker added. With the rise in National Insurance Contributions, it is more important than ever to ensure the employee benefits package is useful, otherwise it is a waste of money and could be a drain on the business.
Employers must engage with employees to find out the benefits they want
The key to getting the right package for employees is to ask employees what would be most beneficial to them. This might seem obvious, but the disconnect highlighted by this research shows this may not happen as often as it should.
Without asking employees what would be most useful to them, the money that employers spend on the benefits available could be money that is being wasted – far from ideal as business costs rise. Aligning employee requirements with the benefits on offer will help employees feel their needs are understood by their employer, which also helps to improve goodwill towards the business.
Make sure your benefits package meets employees’ needs
Getting this right could require a few approaches. The first could be to survey your employees about the kind of benefits you are considering, and then asking for suggestions of other items they may find useful. Once you have a range of responses, you can then begin to refine the offering for employees.
You may have to consider the cost of certain benefits too, something that you can discuss with your accountant. Not only does the cost of the benefit matter, the impact it would have on your employees is fundamental too. But this is something else your accountant can help you determine.
