Over half of employers are not confident in their employee benefits package.
A recent study by Chase de Vere asked employers how they feel about their employee benefits package. The research analysed 2,500 business records and conducted interviews with 300 randomly selected businesses.
According to the survey, 58% of employers are not confident that their benefits packages helps recruit and retain the best quality of staff. Additionally, 64% of employers believe their benefits package they provide offers value for money. From these figures, it became apparent that employers are happy with the amount they are paying but understand that this is not necessarily valued by their employees.
Cost (34%) was the most important factor when an employer explained the reasons for selecting that set of benefits. This was followed by; historical benefits package (25%), popularity with staff (22%), range of choice (11%) and recommended by advisor (8%). Although cost may not be a shocking reason, the historical reasons probably is and probably slightly concerning too. Personalising a benefits package is essential and keeping it up to date with what employees want is just as important.
However, the survey also revealed that staff satisfaction surveys (49%) were the main source of information when measuring the effectiveness of a package. Market competitive measures (24%), cost threshold measures (17%) and criteria agreed with adviser (4%) were also contributing measures.
Sean McSweeney, corporate advice manager at Chase de Vere, commented: “It is deeply alarming that many employers aren’t confident they are getting value for the money they’re spending on employee benefits, yet are doing nothing to address it.
“Employee benefits packages can represent a significant spend for many companies and if these amounts were spent elsewhere it is likely the Finance Director would be ‘all over it’ making sure the money was spent wisely. Yet with employee benefits spend this doesn’t seem to be the case.
“If employers don’t review their benefits packages they won’t know if they’re getting value for money, they won’t know if they can improve benefits for their employees and they won’t know if they can actually save money, perhaps by updating historical benefits or putting more focus on benefits their employees actually want and reducing spend on those they don’t”.
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