While 90% of employers believe their benefits programmes positively impact employees’ lives, only 69% of employees agree, according to research by Benifex.
Its survey of 3,250 employees and 200 HR and reward professionals also found that more than three-quarters (79%) of employers have increased benefits spend over the past 12 months in response to rising employee expectations. Despite this, 62% of employees find it difficult to see the value of their benefits and are unsure if they are making the most of them.
A majority (85%) of employees feel that benefits need to be simpler to understand, access and change, while 81% think employers should offer more cost-of-living support, and want their benefits package to adapt to their personal circumstances.
Four-fifths (81%) think benefits are important when choosing an employer, and 71% said the benefits their employer offers matter more now than two years ago.
Half (46%) of employer respondents have a benefits platform in place, a significant increase from 14% 12 months ago.
In addition, 96% of HR and reward professionals believe AI can play a major role in helping meet employees’ growing expectations. Three-quarters (79%) feel more positive about AI than a year ago, and 57% said AI is revolutionising how they work.
Matt Macri-Waller, founder and chief executive officer of Benifex, said: “Despite the good intentions and increased investment from employers, many employees remain unclear on the value of their benefits. They’re unsure what they’re entitled to, whether they’re making the most of what’s available, or even how to access what’s on offer. This growing disconnect between employer intent and employee experience, the ‘value void’, is having a real impact, with too many employees feeling underwhelmed, unsure, and worried they’re missing out.
“A value-based approach to benefits and reward lets employers meet elevated employee expectations and maximise the real-world impact of every dollar spent. When benefits are understood and appreciated, they become a powerful lever to support employee wellbeing, drive performance, and differentiate your organisation in a competitive market.”
