Only a quarter (26%) of employer respondents understand or value the role of benefits as a tool to support business performance, according to research by Edenred.
Its Engage to perform study, which examined the key priorities for benefits professionals in 2013, found that 69% of respondents said the role of benefits in the reward mix was more important than base pay levels.
Respondents are taking action to improve their benefits proposition including the use of personalisation, better use of technology, the use of HR policy to supplement core benefits, and the use of financial education to supplement benefits communication.
The survey also found:
- 42% of employer respondents intend to review their benefits strategy in 2013.
- 33% of respondents said their organisation has seen an increase in benefits take-up in 2013 so far.
- 77% of respondents said there is no improvement in sight for benefits budgets.
- 33% of respondents said auto-enrolment offers an opportunity to increase awareness of wider benefits.
Andy Philpott, sales and marketing director at Edenred, said: “If there is one clear trend that comes through from our research it is that 2013 is a critical year for the way organisations approach benefits.
“The key challenge in the year ahead remains the issue of communicating the role benefits and reward can play in supporting business performance to employees, managers and leaders in the business.”
I read that 26% headline with incredulity. No doubt many more than 26% of the HR community did too. It would be interesting to see how that question was framed and the answers interpreted. Our experience suggests that a well communicated and constructed benefits programme plays a pivotal role in maximising employee engagement. And when you have well-led, engaged employees it follows that you get improved business performance.