A striking 80 percent of professionals in the UK and Ireland do not take full advantage of the workplace benefits available to them, according to recent research from talent solutions firm Robert Walters.
The findings, which form part of the upcoming 2024 Benefits Guide, reveal a growing disconnect between employers and their staff regarding benefits utilisation and satisfaction.
The survey of 3,000 professionals underscores a significant issue: while workplace benefits are viewed as essential to employee loyalty, satisfaction, and productivity, many employees feel they are not getting the most out of their benefits packages.
A notable 35 percent of respondents expressed dissatisfaction with their overall benefits plan.
Communications Falling Short
A key issue highlighted in the research is the lack of effective communication around benefits. Only half of professionals feel satisfied with how their employer communicates the details of their benefits, which range from financial perks like pension contributions and annual bonuses to wellbeing initiatives such as mental health support and private health insurance.
Chris Eldridge, CEO of Robert Walters UK and Ireland, warns that poor communication could have serious repercussions for employee engagement and retention. “Employers’ failure to communicate or offer attractive benefits could impact their ability to attract and retain talent, as well as reduce employees’ overall productivity and engagement,” he said.
Additionally, only 21 percent of employers surveyed claim to fully understand what benefits matter most to their employees. This disconnect suggests that many organisations may be offering benefits that do not align with their workforce’s needs.
The Importance of Benefits in Retention
The research reveals that more than half of professionals (54) believe the benefits offered by their employer are a critical factor in their loyalty and satisfaction with their job. Furthermore, 41 percent report that workplace benefits positively contribute to their work-life balance.
However, despite the clear link between benefits and employee retention, only 45 percent of professionals report being satisfied with their benefits package. Eldridge noted the potential impact on retention: “It’s concerning that less than half of professionals are satisfied with their benefits package, given its clear influence on loyalty and the willingness to stay with a company.”
Some professionals indicated that they would even consider switching jobs for a role offering a better financial benefits package, even if it came with a lower base salary.
Maximising Employee Happiness and Performance
The survey also found that nearly a third of professionals agreed that their employer’s benefits have a positive impact on their job performance and productivity. However, with a significant portion of the workforce not fully utilising these benefits, employers may be missing out on opportunities to drive better outcomes.
Eldridge emphasised that benefits are an integral part of a successful remuneration package. “Neglecting benefits or failing to invest in impactful options can hurt not just employee satisfaction but overall business performance,” he said.
How Employers Can Improve Benefits Packages
To address the gap between the benefits offered and those that employees value, Eldridge outlined four key strategies employers can adopt:
- Clarify Offerings – Employers must clearly communicate the details of benefits, especially complex financial offerings like pensions or stock options, which can have a significant long-term impact on employees.
- Leverage Employee Feedback – Gathering insights from employees about what benefits they find valuable can help employers refine their packages to better meet workforce needs.
- Measure Success – Regular polls and checks can help employers assess the effectiveness of their benefits and make improvements as needed.
- Customise Benefits – Offering customisable benefits that allow employees to tailor their packages to their personal circumstances can increase satisfaction and engagement.
As workplace expectations evolve, companies that invest in understanding and improving their benefits offerings will be better positioned to attract, retain, and engage top talent.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
