Employers overestimate employee appreciation of benefits

Discrepancy between employer perception and employee reality

According to new research conducted by GRiD, the industry body for the group risk sector, eighty-one per cent of employers measure employees’ appreciation of the employee benefits they receive.

Among these employers, two-thirds (66%) believe their staff ‘very much’ appreciate the benefits offered. However, this is more than triple the level of appreciation employees themselves report, with only 21% feeling the same way.

Katharine Moxham, spokesperson for GRiD, highlights the importance of communication in bridging this gap. “We know that communication and appreciation are inextricably linked, as employees tend to value benefits more highly when they have a good understanding of what is available.”

Key learnings for employers

The findings from GRiD emphasise three essential learnings for employers:

1. Highlighting exceptional support: employee benefits are now considered a standard part of the remuneration package. For these benefits to be truly appreciated, employers need to actively highlight where the support provided goes above and beyond.
2. Ensuring awareness and understanding: appreciation not only relies on awareness but also on understanding. Employers must continually assess whether their staff have a comprehensive grasp of all the benefits offered.
3. Streamlined access: employers need to ensure that benefits can be accessed straightforwardly and efficiently. Complicated access procedures can significantly hinder staff appreciation.

If, after taking these steps, employers still find that staff appreciation is lacking, it might be time to reconsider whether the offered benefits are the most suitable.

Employee benefits represent a significant investment for all employers. If they are not valued by staff, it represents a huge missed opportunity, particularly regarding the value they can add in terms of recruitment and retention.

Methods of measuring staff appreciation

The research also sheds light on the most popular methods used by employers to measure staff appreciation of employee benefits. These include:

• Informal feedback to managers, HR, employee benefits, or wellbeing champions (46%)
• Feedback/suggestion boxes – either physical or email – for employee benefits-related feedback (46%)
• Formal staff surveys (45%)
• Employee benefits forums/working groups/employee liaison groups (40%)
• Online activities that measure clickthrough rates on certain topics, e.g., on company intranet (39%)

Moxham notes the importance of these measures being paired with effective communication. “Many benefits, particularly group risk (employer-sponsored life assurance, income protection, and critical illness), change and are updated regularly. This is so that the benefits meet current needs to support mental health, rehabilitation, prevention etc. It is important that this is made clear to employees.”

The role of evolving benefits in employee loyalty

Employee benefits providers continuously evolve their products to reflect the changing needs of employees and employers. Moxham explains, “We saw how quickly employee benefits providers pivoted to offer support for Covid during the pandemic and, while this was an extreme situation, providers are constantly evolving their products to reflect employee and employer needs.”

Ensuring employees appreciate the benefits they are offered is closely tied to their overall sentiment towards their employer. Organisations that clearly demonstrate care for their staff by offering appropriate employee benefits are more likely to earn their loyalty.

In conclusion, the research underscores the importance of understanding, communication, and accessibility in enhancing employee appreciation of benefits, which in turn can significantly impact recruitment and retention efforts.

Image: Canva.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.