The majority (85%) of respondents have either recently made changes to their organisation’s benefits provision or are due to do so over the next year, according to research by Quintige Consulting Group (QCG).
Its Employee benefits survey, which questioned 54 employers, found that these changes are being driven by organisations looking to attract and retain talent, while creating value for money.
The main changes that employers are focused on are the type of benefits on offer, the level of employee choice available and how benefits are communicated.
The top three considerations involved in designing benefits packages are attracting a diverse workforce, the motivation factors of different employee generations and tax efficiencies.
The research also found:
- The most common benefits offered by respondents are a pension scheme, private medical insurance scheme and life assurance.
- 41% of respondents offer flexible benefits schemes.
- 82% of respondents offer at least one benefit via a salary sacrifice arrangement.
- 72% of respondents use a benefits provider for at least some of their benefits, while 13% use a benefits provider for all their benefits.
- 50% of respondents review their benefits schemes at least once a year, while 22% vary the frequency of review depending on the benefit.
Vicki Badham (pictured), head of reward, and Emma Long, analyst consultant at QCG, said: “Employee benefits are a major part of an employer’s strategy to recruit and retain employees, and thus it is essential that the total benefits package is considered thoroughly to ensure effectiveness.
“As workforces become increasingly diverse, it is ever more important that the benefits package reflects this diversity, meaning that the approach needs to be more tailored as opposed to a one-size-fits-all strategy.
“Ultimately, the package can only work if an effective communication strategy sits behind it because employees need to understand what is available to them in order to value it.”