AIG UK Benefitsí research reveals gap in benefits perception

Research by AIG UK Benefits has found a significant difference between the perceptions of employees and employers in the take-up and effectiveness of voluntary employee benefits (VEBs).

The research reveals a clear disconnection between an employersí perception of employee interest in employee benefits, and the actual take-up of benefits by an employee, highlighting a real opportunity for HR professionals to communicate more effectively with their people about the advantages benefits offer.

Key findings from the study include:

80% of employees report that they find the concept of benefits appealing, although 36% do not use them and 38% declared they did not intend to use them in the near future. This signals that what is on offer lacks fit with employee needs and / or requires clearer communication

One quarter of employees see benefits packages as a deciding factor when selecting employment; 76% agree that a benefits package fitting their needs better than another companiesí package, can actually influence their decision to stay with an employer.

75% of employers agree it is important to match what other employers offer staff if they are to successfully attract and retain key employees.

32% of employees do not agree that their current VEBs work in terms of motivating staff, 33% do not agree that their current benefits increase loyalty, 28% do not agree that their current benefits help to retain or attract staff and 29% do not agree they enhance staff welfare.

86% of employers claim to consult with employees, 80% to consult with trade union representatives and 87% claim they use employee committee feedback to guide benefits selection. However, only 23% of employees claim they are consulted, questioning how closely VEBs fit with employee needs?

ìThe research highlights communication as a key issue for organisations offering voluntary benefits,î comments Terry Pegg, head of sales (UK & Ireland), AIG UK Benefits.

ìCommunicating the advantages, scope and potential impact of benefits successfully presents an opening for employers to engage with their people. However, to do this effectively organisations first need to talk with their staff, define what they want from this type of product and understand their motivation to acquire them. Companies should present all the information and options available to employees so that they can buy into the benefits on offer,î he says.