Organisations Risk Losing Employees Unless They Get Benefits Right

The advantages of offering the right employee benefits are well documented. But now new research has revealed how a significant proportion of employees would actually be prepared to quit their jobs and seek employment elsewhere if better perks were offered.

[Related reading: Could Employee Benefits Help Alleviate Stress In The Workplace?]

One In Four Staff Ready To Switch For Better Benefits

As many as four in 10 employees say they would consider switching employers if it meant they could get better employee benefits, new research has found.

According to the Unum and ONS Labour Market Survey of 2,000 UK adults, 78% of SME decision makers say employee benefits are important for recruiting and retaining top talent.

However, despite this acknowledgement, only 37% said they have re-assessed the employee benefits they offer since the start of the pandemic.

More surprising is the revelation that 32% of firms indicated they have no plans to change their employee benefits in the future. This is a reality that could potentially see them end up with disengaged employees.

Instead of changing employee benefits, 46% of SME decision-makers polled said they would pay bonuses, while 42% would raise salaries or implement remote/hybrid working policies.

‘Employees Place Value On Wider Benefits’

There is some good news, however, with a quarter (26%) of businesses saying they have introduced, or will soon introduce, new employee benefits. Even more encouraging is that 28% said they intend to survey their staff to find out which benefits they value before implementing any future changes.

Among SMEs that have re-evaluated their employee benefits offering since March 2020, 48% did so after learning about their employees’ changing needs. One in five (21%) did so after recognising they were struggling to attract new employees with their current benefits package, and 20% were aware that their competition offered better employee benefits packages.

With 40% of employees saying employee benefits are a key factor in their decision whether to stay or quit, organisations that don’t listen stand to lose some of their most valuable assets.

Speaking about the findings of the research, Unum CEO Mark Till said: “As SMEs reassess their company offerings — including their employee benefits — to fit the changing needs of staff, they shouldn’t assume money means everything. Bonuses and pay rises are, of course, welcome in an environment of rising inflation, but both current employees and future recruits clearly place a value on their broader employee benefits packages that cannot be expressed in pounds and pence. Overlooking this has the real potential to put staffing levels at risk in an increasingly competitive external market.”

[Related reading: Personalised Employee Benefits Could Help Tackle Employee Mental Health Decline]

***

When was the last time you re-assessed the employee benefits you offer? Are you confident that the perks you’re offering are what your employees really want?

If you haven’t reviewed your employee benefits packages recently, now is the time. Contact us today to find out what options are available to you and your employees.