Employee Benefits Failing to Match With Workersí Lifestyles

In the race to secure the best talent, employers may see themselves losing out if they do not match their benefits to the changing needs of employees according to a new survey from leading workplace experts, Croner, a part of Wolters Kluwer UK.

The survey by pay and benefits specialist Croner Reward, highlighted the fact that although employers offer many different perks, 52.9% of employers admitted that employees were not utilising the benefits because they did not fit in with their individual lifestyle requirements.

This figure clearly demonstrates that whilst businesses are aware of a discrepancy between the benefits that employees would find useful and the perks they are offered, they are continuing to offer packages which are out of sync with todayís workers ñ which could be a deciding factor in company attractiveness to 2008ís graduate class.

Out of the top five benefits offered by employers only two appear in employeesí top five most desired perks.

Employers favour the company pension and death in service as their top benefits at 93.1% and 72.4% respectively. However, figures differ greatly for employees with 80.4% of employees viewing the company pension scheme as important and 29.9% viewing death in service as a priority perk.

Whilst younger graduate employees may not be focused on the importance of pensions or death in service, the majority of perks are not being utilised by all staff.

Nearly half (43.9%) of employees would like to have the benefit of private medical insurance and a third (33.6%) would like to be able to work flexitime, both of which are not widely offered by employers.

Croner is advising businesses to review their company benefits scheme and consider implementing those that are seen as a priority by their staff. This will not only help businesses attract the top graduate talent, but also contribute towards employees achieving a healthy work-life balance.

Andrew Walker, at Croner Reward, believes that employers will be surprised by the results of the survey and will have to consider modernising their benefits scheme.

Andrew says: ìAlthough an important factor to all employees, we are increasingly seeing that workers are not solely motivated by money. With modern day lifestyles becoming ever more demanding, employees are looking to employers to help them achieve that essential work-life balance, whether it is by allowing them to work more flexibly or through something like free health care. Businesses can help employees achieve this balance by regularly reviewing their schemes and bringing them up to date with the requirements of their employees.î

Andrew continues: ìIn an age where many people live for the here and now, graduates in particular are more likely to accept a job with a company that can offer much more than just a salary. Companies can stay one step ahead of the game by offering attractive benefits that can help enhance their lifestyle.î

Here are some top tips from Croner for improving the company benefits scheme and recruiting and maintaining a happy workforce:

Consider the needs of both the business and employees. Achieving a balance between the two will help maintain a stable working relationship between employer and employee.

Review the current company benefits scheme. Decide what needs to be changed and what can remain the same.

Involve staff. Involve staff in agreeing working patterns in line with the ebb and flow of business. Show workers that their needs are being considered by conducting an internal survey. This will give you, as an employer, an insight into exactly what your workforce require, making the review process a little easier.

Achieve a benefits balance. Try to achieve a balance between offering the more traditional benefits, such as a pension scheme and the ësofterí benefits, such as flexitime and duvet days.

Have clear policies on benefits and fully brief line managers. Explain the details of the benefits to line managers and ensure that they implement the organisationís policies fairly.

Improve recruitment processes. When recruiting new talent, ensure that recruiters emphasise the benefits opportunities, setting them out in a clear manner so that prospective candidates are fully aware of what the company can offer them.

Measure results. Establish benchmarks for recruitment, retention and absence, and measure these regularly to establish the effect the new scheme has had on the workforce.

Count the cost. Estimate the cost of implementing new benefits as it is important to recover the investment.

Review. Review on a regular basis how the benefits operate to ensure that operations are not compromised, all staff have equal opportunities, and that expected business improvements have materialised.

Allow for change. In your policies, ensure that there are provisions for future change to meet developing business needs.