Competition for talent was cited by three-quarters (77%) of employers as a key issue influencing their benefits strategy, according to research by global advisory, broking and solutions firm Willis Towers Watson (WTW).
Its Benefits trends survey, which surveyed 339 UK organisations across a range of industries about their benefit strategies, also found that despite 45% of UK employees favouring workplace benefits that support long-term finances and retirement, more than half of employer respondents have focused on providing health benefits (57%) and mental health support (56%).
According to respondents, their benefit strategies are being driven by a desire to meet the needs of all employees (56%) and improve employee wellbeing (46%).
In addition, 49% want to improve their benefits positions specifically relating to financial wellbeing and short-term finances, and 59% showed a desire to be above market in this area over the next two years when compared to their main competitors.
Stephanie Parton-Corr, GB health and benefits wellbeing lead at WTW, said: “As concerns around financial wellbeing are growing for many employees in the current economic climate, greater support provided by employers is highly valued. Poor financial wellbeing can affect an employee’s productivity and engagement in the same way as poor mental or physical health, so a balanced approach needs to be taken. Therefore, financial wellbeing is fast becoming a priority area for employers wishing to meaningfully look after their employees’ overall health and wellbeing.
“It’s important that employers can meet employees at whatever stage they’re at and recognise that an individual’s financial wellbeing does not correlate to salary and can change at any time, due to personal life events or circumstances, as well as in reaction to broader general economic factors. There is a whole host of financial wellbeing solutions available for employers to offer to their workforces, which can be tailored to suit any budget and workforce size.”