Novelty benefits are not helpful in attracting and retaining talented employees, new data has revealed.
Research by Nous.co found that three in five (60%) of employers want to axe perks such as workplace massages, pool tables and sleep rooms and would prefer to replace them with more practical financial provisions.
The money saving platform’s study of HR directors and managers showed that just one in three companies offer their workforce financial wellbeing support, despite nine in 10 (90%) being eager to provide benefits that would make people better off.
Topping the list of most-hated novelty benefits was pool tables, cited by nearly two in three (64%) of those surveyed, while free company-branded clothing and free after-work drinks were out of favour with 38% and 32% respectively. These were followed by free breakfasts and massages, named by 30% and 28% of respondents.
The research revealed that more than half of the employee benefits offered are utilised by fewer than 10% of workers, despite the cost to the business in terms of time and resources needed to introduce and administer them.
A third of the HR leaders polled admitted that at least some of the perks provided by their organisation are useless and gimmicky.
In terms of the cost-of-living crisis, however, most respondents are aware of its ongoing impact on staff, with nearly three in four having seen higher stress levels among workers and more than four in 10 (42%) reporting greater sickness absences due to financial strain.
More than one in three employers say they awarded pay rises below inflation in 2023, while three in four (74%) believe that pressure to increase salaries is a threat to their organisation’s financial security.
Greg Marsh, Nous.co founder and CEO, said: “Business leaders know that their teams are struggling financially. They also realise that employees’ expectations of how their company should support them in their day-to-day lives are rising.
“Novelty benefits don’t solve these problems. Most people don’t actually use them, and they can seem pretty tone deaf in the current financial climate.
“HR leaders need to focus instead on solutions that deal with the problems that really matter to their workforce, and can make them genuinely better off. This kind of support makes employees feel valued, as well as helping them stay on top of the rising cost of living.
“At Nous, we see just how much the vast majority of us are overpaying on our household bills, and how much of a positive impact companies can have by providing practical support.”
