Businesses need to audit benefits to remain competitive

While salary remains a key part of talent attraction and retention, employees are shifting their focus to overall packages, meaning good pay is no longer the sole deciding factor. As the cost of living rises and priorities change, employees are placing greater emphasis on healthcare, financial security and tailored support.

This is shining a spotlight on the need for businesses to audit and review their benefits offering. Despite the rise in demand from employees – two thirds (66%) want to see their employer invest more in benefits options – nearly half (48%) believe their current package does not meet their needs.

A fear that pay rises aren’t coming is also contributing to this trend of looking beyond just base salary. Our research has found 50% do not expect a pay rise this year and 55% do not expect a bonus this year. Instead, the focus is turning towards other benefits such as private medical insurance, the most in-demand benefit. Financial security is also becoming more important, and three in ten (28%) would like to see higher pension contributions from their employer.

Bridging the engagement gap

It’s clear that employers need to review their benefits packages and listen to the needs of their workforce – but the issue does not lie only in the number of benefits offered. Supporting employees with tailored benefits relies on effective engagement, and this appears to be lacking across the board. Only 59% of employees are aware of the full range of benefits available to them, and only 38% are making use of all of them.

This should not just be a concern for HR leaders, but businesses as a whole. Failing to address this gap has the potential for significant consequences. A low proportion of employees making use of benefits results in a poor return on investment, and could cause firms to lose talent. Half (50%) of employees say they would leave their role for a better benefits proposition, highlighting how critical a rewards package is in today’s talent market.

If employees aren’t using the full benefits available, this signifies businesses need to move away from a generic, one-size-fits all offering which does not meet employee needs to something more tailored. HR leaders need to conduct surveys, regularly engage with their teams and utilise data to understand the demands among employees, and review how benefits can be tailored specifically for individuals to increase uptake and ensure teams are making full use of their packages.

Technology has a crucial part to play in this process. Relying on outdated, fragmented systems and approaches makes it harder for HR teams to gather these insights and engage employees. Utilising innovative technology, such as an intuitive platform with all the benefits in one place and regular reporting for HR teams, makes it far easier for employees to access to their full package, and for HR to track awareness and usage.