Employers are significantly overestimating how much employees value their workplace benefits, according to new research from industry body Grid.
The study found that while 92% of employers believe staff either “very much” (49%) or “somewhat” (43%) appreciate their benefits, only 52% of employees say they actually do, a 40-point gap between perception and reality.
Grid warned that benefits only deliver real organisational value when they are genuinely appreciated and understood. It said that without clear communication and employee engagement, even well-designed benefits packages may fail to support recruitment, retention and long-term commitment.
The research also found that just 57% of employers measure staff appreciation of their benefits, leaving many without data to assess whether budgets are being used effectively. Of those that do measure engagement, 415 collect informal feedback through managers or HR teams, 40% use feedback or suggestion boxes and 39% analyse online metrics such as intranet click-through rates.
Grid highlighted the importance of offering benefits that align with employee needs, noting that group risk products remain among the most widely held and valued. Over 11.4 million employees now have group life assurance, many of whom also benefit from embedded services supporting mental and physical health.
Grid spokesperson Katharine Moxham says: “There is a disconnect between how staff feel about their employee benefits and whether employers have an accurate understanding of employee appreciation in this area. Employers need to get better tuned in, as it is only with appreciation that staff will truly value what they are offered.
“The three most popular methods of measuring staff appreciation of benefits are all reasonably informal which may make them less accurate, so we’d encourage employers to use a mix of informal and formal measurements to get an accurate picture of staff sentiment.
“Employers need to ensure that all of the employee benefits that they offer are valued by staff. What is clear is that employers who do not take any steps to measure whether staff appreciate their employee benefits, and those who only do so informally, do not have a complete picture of whether or not their budget is being well spent.
“Ultimately, the effectiveness of a benefits package is measured not just by what is offered and utilised, but also by how well it resonates with the workforce.”
