Employers are confident that their benefits packages support staff wellbeing: 67% believe they have a positive impact. But employees feel very differently. Only 31% say their benefits have helped them proactively look after their health and wellbeing.

This disconnect, highlighted in Unum UK’s latest research, exposes a fundamental issue: employers might be investing in benefits, but if employees don’t see or feel the value, those investments are falling flat. And in a world where employee engagement, wellbeing, and retention are top priorities, underutilised or misguided benefits are a wasted opportunity.

Why Benefits Are Missing the Mark

So, why the disconnect? A few key factors are at play:

  1. Poor Communication & Awareness
    Employees can’t value what they don’t fully understand. Lots of organisations roll out new benefits with little follow-up or ongoing education, leaving employees unaware of what’s available – or how to use it.
  2. Misalignment with Employee Needs
    Businesses might think they’re offering valuable benefits, but without employee input, they could be missing the mark. A great package in theory doesn’t help if it doesn’t address employees’ real pain points.
  3. Lack of Personalisation
    One-size-fits-all benefits don’t work in a diverse workforce. Employees today expect flexibility – whether that’s in health coverage, financial support, or purpose-driven perks like volunteering opportunities.  

Turning Benefits Into Real Value

To close the gap between employer perception and employee reality, businesses need to shift their approach from simply providing benefits to ensuring they drive real impact. Here’s how:

1. Listen to Employees, Then Act

Too many organisations assume they know what employees need. Instead, engage employees directly through surveys, focus groups, and open forums. The best benefits strategies are built with – not just for – employees.

2. Rethink the Definition of ‘Valuable’ Benefits

Health insurance and pensions remain crucial, but modern employees also need flexible wellbeing support, mental health resources, and purpose-driven opportunities. Volunteering, sustainability initiatives, and social impact programs help employees feel more engaged and fulfilled at work.

3. Communicate, Reinforce, and Educate

A single email about benefits isn’t enough. Employers should integrate benefits education into onboarding, provide ongoing training, and ensure managers are equipped to guide employees to the right resources.

4. Link Benefits to Business Outcomes

Demonstrating how benefits impact engagement, retention, and performance can help businesses refine their approach. If employees don’t perceive a benefit as valuable, it may be time to reassess its relevance.

Make Benefits Work for Your People

A benefits package is only as good as its impact. Businesses that actively listen, personalise offerings, and effectively communicate benefits will see higher engagement, better retention, and a healthier workforce.

Want to ensure your benefits align with employee needs and drive real impact? Book a demo with OnHand and discover how purpose-driven benefits can transform your employee experience.