Is your workplace benefits package working for you?

At a time when many sectors are not only still dealing with the fall-out of the pandemic, but are also in the throes of a recruitment and cost-of-living crisis, there are financial stresses and strains at every level.

It might feel like the worst time to be looking at reviewing your workplace benefits package, but that’s why it’s important to understand how your workplace benefits offering might be part of the solution.

 What factors are affecting workplace benefits?

Gone are the days when it was enough to offer a basic pension and a day off for your birthday. People want and need more from their company benefits package, due to external pressures and an almost universal shift in priorities.

It would be hard to discuss workplace benefits without mentioning the pandemic. Changes to how we work, a widespread realignment of priorities towards health and wellbeing, a stress on personal finances, unemployment, the need for sickness leave and absence pay all contribute towards an increase in employee interest in their workplace benefits. According to a recent report (MetLife UK), employers have seen a 63% increase in employee enquiries about benefits programmes.

Then there’s the cost-of-living crisis. Personal finances are strained. One in eight employees say their income does not support an acceptable standard of living and around a quarter say money concerns impact their work (CIPD).

Not forgetting the recruitment crisis and skills gap. While a move towards working from home may have relieved the overheads of a physical office, it has also meant that some employees are now not limited to finding work in their local area. This has opened up new competition for companies wanting to recruit.

How your benefits package can work for you

It comes down to two things: retention and recruitment. If an employee is struggling to make ends meet or has heard that another company offers, for example, childcare vouchers or gym membership on the same salary, they might look to move elsewhere. If the job description and salary are very similar across several job offers, a candidate is likely to look to the benefits to help them decide.

According to a 2022 report (CIPD), 56% of companies in the survey reported big problems filling vacancies, a figure that increases to 72% for the manufacturing and production sector. And while increasing basic pay is still the most popular way of solving the problem, according to the CIPD, it’s not always possible in SME budgets. Another reason why a review of your benefits package should be on the cards.

To recruit and retain staff, the CIPD has found that 90% of employers surveyed recently increased salaries, 35% improved their benefits package and 32% adopted policies that would improve work–life balance.

How to change your workplace benefits to work for everyone

Employees continue to rate pensions as the most important benefit in a recent survey (MetLife UK), but it’s interesting to note a general shift in benefits trends. While financial perks remain high on employees’ priorities, according to an AON survey, 88% of respondent companies are now putting an emphasis on health and wellbeing packages, 87% on mental health, 78% on flexible working and 70% on work–life balance assistance.

What’s important to note is that there is no one-size-fits-all package. What suits one worker will not suit the next. Communication is key as well. The same CIPD survey found that around a third of employees were not told what their benefits were or how to get them.

Making your benefits options available online for workers to find out about and select from will give them the opportunity to get the benefits that suit their circumstances and lifestyle. A flexible benefits package will also help your workers feel they are being treated as an individual with their own needs, not as a link in a chain.

As a busy recruitment consultancy, we know what today’s candidates are looking for and increasingly their requirements go way above salary. If you need help with recruiting, call Key Appointments on 0844 504 4666 or drop us a line at info@key-appointments.co.uk.