Not sure how much your employees value benefits? New research shows that a significant proportion would actually change jobs if it meant they got a superior benefits package.
According to the research by employee-paid benefits provider Benni, more than a fifth (22%) of workers would actually switch jobs to get a better benefits package. Benni’s War for Talent report, for which 2,000 UK employees were surveyed, also shows that 42% of workers utilise employee benefits that their employer pays for entirely, while 38% say they have no benefits and 6% pay for their benefits themselves.
The report also reveals that younger employees are more influenced by benefits, with more than a quarter of respondents (26%) aged between 23 and 37 saying they have previously left a job or considered leaving a job solely because of the benefits on offer. This compares to just 11% of respondents aged between 55 and 73.
Furthermore, 24% of the younger age group said they would think about quitting their job if they found out that a peer was enjoying a better benefits package elsewhere. This compares to 17% of the older group.
Benefits as a deciding factor
For 16% of respondents, the benefits package on offer was one of the top three deciding factors for choosing their current position. Two-thirds (66%) said they get some form of benefits and perks at work, but this isn’t consistent across age groups, with 73% of individuals aged under 22 stating they receive benefits, compared to 44% of those above 55.
The report also revealed a link between benefits and salary. Of employees earning between £15,000 and £25,000 a year, 42% said they receive employee benefits vs. 81% of employees earning between £45,001 and £55,000 a year.
There’s also a sense that the size of an organisation has a bearing on the benefits offered, with more than four-fifths (82%) of respondents saying they believe larger enterprises offer a broader range of benefits compared to smaller businesses.
Speaking about the report, Kyle Addy, voluntary benefits director at Benni, said businesses of all sizes need to be aware of how influential benefits can be, with even seemingly happy employees being tempted to move elsewhere if there’s a better benefits package on offer. He added that employers should be particularly aware of the value of benefits to younger workers, who have enjoyed increased job mobility and understand their market value better than most.
“Given the wide range of benefits and perks available, many employers may be left feeling they’re simply not able to compete. So, it’s encouraging to see that so many employees are prepared to make a contribution towards the cost of valued benefits like health insurance. Almost one in five (18%) of our sample already fund, or part fund the benefits they receive, so split payment options are worth considering as part of an attractive benefits strategy,” he said.
With the competition for talent now hotter than ever, employers need to be ensuring they are doing everything they can to not only attract the best employees, but also retain the ones they’ve already got. Benefits packages can play a significant role in this process.
I have over 15 years client facing experience in the Employee Benefits industry having worked for Mercer HR Consulting and The Willis Group in London. Bringing my expertise to mid and large corporate clients, I joined Premier Choice Healthcare in December 2015, with the aim of advising and developing a varied Corporate client portfolio.