A rise in what employees expect from their workplace benefits has prompted 79 percent of employers to increase spending over the past 12 months, research has found.
However, a major disconnect or “value void” is emerging between what employers think they’re delivering and what employees actually experience.
Research from employee benefits and reward platform provider Benifex found that 90 percent of employers believe their benefits programmes positively impact employee lives, while only 69 percent of employees share this view.
Nearly two thirds (62 percent) of employees are unsure if they’re making the most of what’s available to them, and 85 percent say benefits need to be simpler to understand, access, and change.
More than four fifths of employees (81 percent) say employers should offer more cost-of-living support, and the same percentage want their benefits package to adapt as their personal circumstances change.
Employees told researchers they now consider benefits critical to their overall experience at work, with 81 percent agreeing that benefits are important when choosing an employer and 71 percent reporting that the benefits their employer offers matter more now than two years ago.
The provider warned that as employee expectations climb the gap between expectation and delivery could undermine even the most well-intentioned strategies.
To close the gap, employers are turning to technology. The use of benefits platforms has surged from just 14 percent 12 months ago to 46 percent today. These platforms help organisations simplify benefits, improve access, and better measure engagement, the provider said.
AI is also gaining traction, with 96 percent of HR and reward professionals telling researchers they believe AI will play a major role in meeting employee expectations, while 57 percent say it’s already transforming how they work.
Matt Macri-Waller, founder and CEO of Benifex, said it is “encouraging that two-thirds of employees feel that their benefits positively impact their lives”, but he emphasised that this is only part of the story as many employees remain unclear on the value of their benefits.
He said: “This growing disconnect between employer intent and employee experience – the ‘value void’ – is having a real impact, with too many employees feeling underwhelmed, unsure, and worried they’re missing out.”
He added: “AI is the critical tool in closing the expectation gap and helping employees to understand the value of their benefits. It will provide employees with the essential information they need, cutting through complexity and assisting them to make informed decisions and take action.”
