New research by employee benefits technology provider Zest highlights that almost six in ten (56 percent) employees are willing to leave their current job if offered a better benefits package elsewhere.
The findings come from Zest’s latest Employee Benefits Report, underscoring the increasing importance of employee benefits in attracting and retaining talent.
The research shows that only 39 percent of employees believe their current benefits package offers good value for money. This suggests that organisations must reassess their employee benefits strategies to ensure they are meeting the needs of their workforce, especially as financial support and wellbeing are now key factors influencing job decisions.
Employee Benefits Key to Job Decisions
The report highlights that benefits such as pension contributions and healthcare are playing a more significant role in employees’ decisions about where to work. Almost two-thirds (63%) of employees say that workplace benefits have become more important when considering new roles. This number rises to 72 percent among younger employees aged 18-34, indicating that benefits are especially important for attracting younger talent.
Despite the growing importance of benefits, many employees still find their current packages inadequate. Two in five (41%) employees feel that their benefits package does not meet their needs, with this figure increasing to nearly half (47%) among those aged 18-34.
The research shows that, despite the recent dip in inflation, employees are still prioritising financial support over wellbeing perks in their benefits packages. Private medical insurance is the most sought-after benefit, followed by increased pension contributions, which 32 percent of employees see as a priority. A quarter of employees (24%) would also like to see employers contributing to energy costs at home, reflecting the continued pressure on household finances.
Although financial benefits are in high demand, employers are not always aligning their offerings with employee expectations. For instance, while 32 percent of employees want higher pension contributions, only 12 percent of businesses have increased these in the last 12 months. Similarly, while mindfulness programmes are less in demand (with just 9 percent of employees calling for them), 14 percent of businesses have introduced such initiatives over the past year. This disconnect between employee needs and employer offerings suggests that organisations need to refocus their benefits strategies to better support their workforce.
Benefits Packages as a Retention Tool
As rising living costs continue to affect employees, many businesses are struggling to offer salary increases. Zest’s research shows that one in five (19 percent) firms admit they cannot afford to raise salaries. In this context, employee benefits packages provide an alternative way for organisations to support their employees and remain competitive in the talent market.
Matt Russell, CEO of Zest, commented, “Organisations who fail to meet the needs of their employees could face a debilitating talent drain unless they enhance their benefits packages.
“Employees are placing increasing importance on financial support from their employer and aren’t afraid to switch jobs to get the perks that they need. Employers must ensure that not only are they increasing investment in their benefits offering but delivering enhanced value by implementing the support employees are calling for.
“However, there is also an opportunity for those employers who understand the support their employees are demanding when it comes to benefits packages. These firms can possess a competitive edge as they can leverage their generous and targeted benefits to support talent attraction and retention which can support productivity and business performance.”
