Just 40 percent of employee benefits are being used and 47 percent of employees feel undervalued, believing leaders are out of touch with their benefit preferences.
These were the findings of a study that examined the opinions of more than 3,000 HR professionals, c-suite leaders, and employees for a report titled ‘Beyond the salary slip’.
The study, conducted by Opinion Matters on behalf of employee benefit provider Boostworks, found that 65 percent of employees wanted to see improvements to existing reward and recognition programmes at their organisations. This could be due to the fact that only 54 percent of employees are rarely, if ever, consulted about benefits schemes that directly impact their work-life satisfaction.
The research highlights a significant disconnect between employee desires and the challenges for HR professionals in delivering fulfilling benefit programmes, including reward, recognition and wellbeing programmes.
Yet almost all (97 percent), c-suite executives want better rewards programmes. This suggests that HR professionals are being given a mandate to evolve rewards programmes, the study said.
However, a fifth of HR respondents reported a lack of c-suite support as the biggest obstacle to progress. And HR professionals also warned that there will be challenging times ahead for organisations trying to keep up with the benefits demands of modern employees.
More personalised approach
The vast majority (91 percent) of employees said they would prefer more personalised communication regarding rewards and recognition.
Millennials and Gen Z employees said they would like employers to prioritise help with paying off student loans and mental health benefits alongside traditional offerings.
Andy Caldicott, CEO at Boostworks, said the research provides “a candid look” at how strategic delivery of rewards can meet the dual demands of employee satisfaction and commercial success.
“The desire to implement a compelling employee value proposition (EVP) is clear, with 87 percent of HR leaders poised to strategically enhance their programmes. The time has come for HR and business leaders to work closely together and transform these plans into action, recognising that a well-executed EVP can significantly shift the needle from employees feeling underappreciated to those that are thoroughly engaged and inspired.”
Further findings revealed that reward, recognition, and benefits played a crucial role in employee attraction to an employer, with 63 percent of employees reporting that they were attracted to their current job by the benefits on offer. However, more than two fifths (44 percent) of employees feel they do not get rewarded or recognised by their organisation for their achievements. More than half of employees (52 percent) said this had made them feel their efforts had not been acknowledged over the past 12 months.
Limited understanding of benefits
A fifth of employee respondents (21 percent) admitted that they did not fully understand the reward, recognition and benefits available to them through their employer. This could explain why tailored benefits were popular with employees. More than half (54 percent) said they had this in their current role.
However, the majority of workers wanted more personalised rewards, with 90 percent expressing a preference for immediate rewards that offer real-life benefits, such as extra days off or flexible working hours.
Wellbeing and development were another priority for employees. High proportions of staff were in favour of non-monetary recognition that supports wellbeing (82 percent), career development opportunities (86 percent), and peer-to-peer recognition initiatives (83 percent).
“Promisingly, 72 percent of companies are actively planning to customise their benefits offerings, highlighting the strategic importance placed on attracting and retaining talent,” Caldicott said.
“The learnings from this research are clear – now is the time to reflect, recalibrate, and reinvigorate the strategies and programmes that will define your success in recognising and valuing your most important asset: your people.”
