Report finds rising interest in employee benefits packages

Nearly three quarters of employees say they are more likely to stay with an employer that offers a good employee benefits package, a 4% increase on last year, according to the fourth annual Capita Employee Benefits Insight Report.

Managing Staff & employees benefits

 

The report draws on interviews with more than 3,000 people in employment and looks at employees’ attitudes towards pensions, retirement, auto-enrolment, benefits, savings and health in the workplace.

Employee benefits include things like retirement benefits, childcare support and healthcare packages.

It finds that employees expect more from their employer in terms of the appropriateness of benefits and how they are communicated.

Some 65% of employees say they expect their employer to provide guidance on the employee benefits they offer and how appropriate each benefit might be to them and their family.

In terms of how benefits are communicated, the report says younger employees are the worst served group. Just 13% of 25-34 year olds say their employer communicates with them in a way they want, with 47% saying their employer uses communication channels they are not interested in.

Another survey out this week from Direct365 shows only 40% of younger employees say employee benefits are important when they are looking for a job, compared to 70% of 35 to 44 year olds.

Some 62% of employees who have flexibility in being able to choose benefits say they are in a good scheme, with just 9% saying they are in a poor scheme.

Alex Tullett, head of benefits strategy at Capita Employee Benefits, said: “The past few years had shown a steady decline in the number of people who say they would take a job based on a good benefits package, down from a high of 72% in 2013.

This year, that trend has been reversed, as has the decline number of people who would stay in a job based on the benefits on offer.

“But the days of offering benefits because of tradition (industry or otherwise) or offering them because ‘that’s what’s always been done’ are ending.

Employers want to see a business case for each benefit offered and for the overall benefit strategy, they want proof they are getting their money’s worth and that employees are responding to their benefits with the commensurate engagement and loyalty.

“People are much more likely to buy a benefit as and when it becomes relevant to their lives – why shouldn’t they expect to be able to buy travel insurance after they’ve booked their flights?

It’s clear that guidance on how appropriate each benefit would be for individual staff would be greatly appreciated.”



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