Best Employee Benefits: How Do Worker Views on Benefits Differ to Employers?

Undeniably, worker productivity is associated with benefits you offer. Lots of businesses provide employee benefits and desirable packages to boost up productivity and retain good employees. But how effective are these benefits? Are they a mix and match with what employees really want? Unfortunately, lots of businesses forget or don’t pay proper attention to this matter.

Employee benefits can range anything — cash plan, flexible working hours, life insurance, etc. And many employers believe that providing such things can increase employee performance and job satisfaction, and help them stand out from their competitors. Still, to attract the right workers to the company, improve employee engagement levels and retention of staff, employers must first understand what their target market really wants, whether it is financial security, or work-life balance. That must be the first and foremost thing employers do before planning up their employee benefit programs.

What are employees’ most desired benefits?

According to 2015 survey conducted on UK employees by PMI Health Group:

• The employees’ most desired benefit is a contributory pension scheme, especially among above-average earners.
• The second and third most desired are childcare vouchers and private medical insurance, particularly among above-average earners.
• The most valued benefits by the below-average earners are life insurance and cash plan.

Meanwhile, what are most common benefits offered by employers?

As per PMI Health Group survey 2015:

• Childcare vouchers are most commonly offered by employers.
• 25+ days’ holiday and work mobile phones are also the popular benefits provided by employers.
• Ranked lower in the top 10 benefits are bonuses and healthcare plans.

How does employers’ view on top attraction drivers differ to employees’ view?

According to 2014 Global Workforce Study and Talent Management and Rewards Study by the leading global professional services company Towers Watson:

• Generally, employers understand the priorities of attraction (base pay, job security and career advancement opportunities). The attraction drivers cited by workers and employers are largely the same though, job security ranks higher among workers’ key reasons to join a company (41% of employees consider so, while 26% of employers say so). Also, an organization’s mission/ vision/ values aren’t viewed as top attractions by employees.
• The last driver throws light on a distinct difference between employer and employee views. Workers cite paid vacation time as one key attraction driver, reflecting the importance they put on work-life balance and the need to unplug from work. Meanwhile, paid vacation time is clearly absent from the employers’ view on the key attraction drivers.

Top 7 attraction drivers — Employee versus employer views (Source: Towers Watson, 2014)

How does employers’ view in what boosts retention differ to employees’ view?

According to 2014 Global Workforce Study and Talent Management and Rewards Study by Towers Watson,

• Both employers and employees feel that basic salary offered for a job is the most important factor for staff retention.
• Employers rate the length of the workers commute and job security as some of most important factors for retaining employees; meanwhile, these aren’t important factors for workers.
• Employers consider such factors as limiting work-related stress and learning & development opportunities as more important; 2 things that aren’t considered important by employees.

Top 7 retention drivers — Employee versus employer views (Source: Towers Watson, 2014)