More than half (58%) of employees think their workplace benefits are inadequate amid rising living costs, according to research findings published by benefits provider Epassi UK.
Researchers also found that seven in 10 (70%) employees would leave their job if another company offered them better benefits.
Half of employees (49%) are concerned about rising energy bills, with four in 10 (40%) wanting more employer support in relation to bills.
Around a quarter (27%) of the 2,000 workers surveyed receive financial assistance from their employer for their energy bills. Four in 10 (44%) UK employees reported wanting more support with their mortgage and childcare costs.
What stands out is the direct link between benefits adequacy and retention risk, said Ruth Cornish, fractional chief people officer at HR consultancy Amelore.
Cornish said: “With benefits becoming highly valued, organisations need to recognise that they are a core workforce strategy issue.
“Employees want to feel their employer is a trusted partner in their financial wellbeing.”
Simply offering benefits isn’t enough, said Matt Russell, CEO of benefits platforms Zest and Epassi UK.
Russell said: “It’s vital that reward strategies meet the demands and expectations of employees.
“Employers need to ensure that they are regularly engaging employees and boosting benefits take-up. Failure to do this makes it hugely challenging to deliver the necessary support, or ensure that reward packages offer value for money.”
Underscoring Russell’s comment about ensuring that employee benefits offer value for money, research commissioned by salary sacrifice provider Tusker – a survey of 276 HR practitioners – found that six in 10 (63%) HR leaders believe that value for money is the most important factor when choosing employee benefits.
Russell said: “With increased NI contributions and higher business costs, many organisations are unable to offer pay rises, placing greater importance on reward packages.
“Given rising living costs, providing support with staff energy bills is one approach employers can take to provide financial support to employees.”
HR leaders need to move from a position of assumptions to insight when aligning benefits to employee needs, stressed Cornish.
Provide more access to structured financial support services, Cornish advised, through mortgage and debt advice, workplace saving schemes, and enhanced family support. She also encouraged employers to regularly review their pay positioning, particularly for lower earners.
Cornish said: “Many employers over rely on EAP schemes, which often have a poor take up. Employers should keep the offering freshm and consult with the workforce regularly.
“No employer can solve the cost-of-living crisis, but they can attract and retain employees by offering insightful benefits that are trusted, relevant and easy to access.”
