Just 16% employees who felt their benefits package met none, or very few, of their requirements said they had a higher likelihood of planning to move jobs, according to research by reward and benefits consultancy Isio.
Its survey of more than 7,500 UK private sector employees also found that 58% of respondents who felt their benefits fully met their needs had no plans to change jobs.
The report found respondents’ top three employee benefits were hybrid working (70%), flexible working hours (65%), and pension contributions (50%). This was followed by help to buy a home (45%), private medical cover (43%) and income protection for ill health (42%).
Almost half (46%) of 18-24 year olds said they prioritise long-term saving, with employees aged 45 and above more focused on pension contributions and 73% prioritising retirement savings. Almost two-fifths (38%) of Black employees surveyed prefer saving for a home deposit over pensions, compared to 15% of white employees.
For Asian employees, 82% emphasise the importance of career development, while 84% of Black employees value a supportive workplace culture. Four-fifths (80%) of respondents from mixed minority backgrounds seek employers that support flexible working.
Overall, a quarter (24%) lack confidence in making financial decisions, with women 64% more likely to say this is the case. If individuals have low financial confidence, they are 34% more likely to feel their benefits fail to match requirements.
One-third (36%) expressed a desire for guidance on retirement and pensions, followed by 20% wanting help with saving and investing.
Andy Craig, partner and head of reward and benefits at Isio, said: “Many employers have a benefits package that appears to tick all the boxes in terms of a range of options and degree of flexibility. But delve a little deeper and you often find it hasn’t been designed with the modern or diverse workforce in mind, or employees have not been effectively engaged with it and, therefore, take up is low.
“Benefits are a significant spend for employers and the budget could often be better spent. The findings from this report make it clear that employers should adapt their benefits packages to the evolving needs of their workforce. The demand for flexible, inclusive benefits is growing, and those businesses that respond will not only retain talent but also create a more engaged and resilient workforce.”
