A staggering 90 percent of U.K. employers find themselves unable to adequately demonstrate the value of their benefits packages to employees, according to a recent study conducted by Buck, a Gallagher company, in collaboration with the Reward & Employee Benefits Association (REBA).
In a fast-evolving job market where attracting and retaining talent is critical, the findings underscore a significant gap in the ability of employers to leverage data modelling for showcasing the value of their benefits packages.
With the skills gap widening and talent competition intensifying, the urgency to address this issue becomes paramount.
The research reveals that only 10 percent of employers possess the capability to utilise data modelling effectively, hindering their ability to align benefits packages with long-term strategic goals.
Despite holding a wealth of valuable data, the lack of proper analytical tools prevents employers from translating statistical insights into tangible advantages for their workforce.
A return on investment
As the demand for skilled workers continues to rise, there is a growing emphasis on ensuring that employee benefits packages not only support company strategy but also yield a substantial return on investment. The study indicates that 73 percent of businesses anticipate the impact of increasing cost pressures on benefits strategies, a notable rise from 52 percent in 2022.
Leveraging data becomes crucial for employers to ensure that benefits schemes provide maximum value while withstanding rising costs.
However, the majority of employers still fall short in harnessing available data effectively. By fully leveraging proprietary data, employers could swiftly model the costs of running a benefits package and analyse employee engagement levels, enabling them to demonstrate value to board members and future-proof their benefits packages through the identification of demographic trends.
Heightening employee benefits packages
In the coming years, there will be a heightened focus on enhancing employee benefits packages to align them with company strategy and ensure a significant return on investment. The survey results suggest that many employers fail to leverage the available data, which could provide valuable insights into costs and employee engagement.
Enhancing and installing analytics tools is poised to become a key priority for employers in the coming year. Presently, only 5 percent of employers use a benefits platform with advanced analytics on user behaviour. However, 91 percent express that such functionality would be highly effective, indicating a strong appetite to increase investment in analytics tools.
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 the 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.