Almost six in ten (56%) employees admit they would leave their current job if another company offered them a better benefits package, reveals new research from employee benefits technology provider, Zest.
Currently, only four in ten (39%) employees believe their benefits package offers good value for money.
The findings mark the launch of Zest’s latest Employee Benefits Report and indicate organisations need to ensure they are increasing investment in employee benefits packages to provide additional support to employees and retain key talent.
Benefits packages are increasingly playing a key role in employee decision-making around future roles. Around two-thirds (63%) of employees agree that company benefits, such as pension contributions or healthcare, have become more important to them when deciding where to work. This rises to almost three quarters (72%) of younger employees aged 18-34.
However, two in five (41%) employees think their workplace benefits package is inadequate, which rises to nearly half (47%) of 18-34 year olds.
Although inflation has dipped over the last few months, employees are still prioritising financial support over wellbeing perks from their benefits packages. Private medical insurance is the most in-demand benefit followed by increased pension contributions (32%) and employer contribution to energy costs at home (24%).
Although a third (32%) of employees named increased contributions as a priority benefit and 9% called for mindfulness programmes, these demands are not reflected by employers. 14% of businesses introduced mindfulness programmes during the last 12 months whilst just 12% raised pension contributions demonstrating a disconnect between the needs of the workforce and what employers offer.
Employee benefits packages offer organisations an alternative approach to enhance support for their employees – especially as one in five (19%) firms admit they can’t afford to increase salaries.
Matt Russell, CEO of Zest, adds: “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.”
Zest is an employee benefits technology company with over 500 customers, including Hargreaves Lansdown, Taylor Wimpey, Yahoo and Travis Perkins, serving over 300,000 employees. Its multi award-winning platform offers a fresh approach to truly flexible employee benefits.
Employers can use Zest’s ROI Calculator to learn more about potential savings on employer NI contributions as well as approaches to reduce talent loss and boost productivity: https://www.zestbenefits.com/roi-calculator/
