Only 13% Of UK Workers Are Truly Happy With Their Benefits Package: Find Out Their Wishlist

Desired vs. Delivered: Understanding Employee Benefit Preferences

By understanding what company benefits employees actually want, you can make relevant adjustments to your offering to stop them from going elsewhere.

We asked employees what benefits they currently receive. The top five included, unsurprisingly, a pension (69%), and this was followed by:

• Remote working (45%)
• Death in Service (35%)
• Flexible working / reduced working week (31%)
• Employee Assistance Programmes (28%).

What Employees Want

With so many employees dissatisfied with their benefits, what do they actually want? To find out we asked “Which employee benefits would you like your employer to offer?”. The top five included:

• A reduced work week (39%)
• Flexible working (27%)
• Company Health Insurance or Corporate Cash Plan (25%)
• Enhanced time off / sabbaticals (23%)
• Enhanced pension contributions (22%).

As you can see, employee priorities don’t necessarily align with that of employers. Armed with the knowledge that over two-thirds of your workforce would leave for better pay and benefits, is it worth reviewing your perks to align better with the wants of your team?

Bridging the Gap: Aligning Benefits with Employee Priorities

In today’s competitive job market, understanding and addressing the gap between what employees want and what they currently receive is crucial.

By aligning your benefits package with employee preferences, you can enhance job satisfaction, reduce turnover, and attract top talent. Understanding what they really want can go a long way to providing a truly great employee benefits package. We look at employees benefits wish list in more detail below.

The Four-Day Work Week Hype Isn’t Going Away 🧘‍♀️

The four-day week isn’t just a fad. 39% of employees said they want their employer to offer a reduced working week more than any other benefit.

The UK’s largest four-day week trial found a reduced working week improved mental and physical health, and 71% even experienced less stress and burnout as a result. Not convinced? The official 4-Day Week campaign launched “4gust” – an initiative that encourages employers to offer a short week in the typically quieter month of August.

Beyond reduced working weeks, flexibility and work-life balance are firmly on the radar for employees, with 23% hoping for their current employer to offer enhanced leave and sabbaticals. It’s clear that the ability to choose when and how they work is top of mind for employees. They’re also easy benefits to implement for most businesses, with little to no cost.

Health Is Front Of Mind 🤸‍♀️

Health and wellbeing perks are very much on the employee wishlist for 2024. Less than half think their employer prioritises their mental and physical health, and 25% want benefits such as Company Health Insurance and Virtual GPs.

With 91% of employees facing workplace stress, investing in the wellbeing of your staff has never been more important. But if your budget won’t stretch to Group Private Medical Cover, a Corporate Health Cash Plan (which usually comes with a Virtual GP perk) is a great alternative to offer.

Employees Want More Money For Retirement 👵

While we have a State Pension in the UK, the reality is that it won’t be enough for a comfortable retirement. Workers are turning to their employers to help them save for their later years (63% expect their workplace pension to be their primary retirement income).

22% of employees said they want enhanced pension contributions from their employer, and as our 2024 Workplace Pensions Survey found, 60% would even take bigger pension contributions over other benefits.

Enhanced pensions are a huge draw when hiring new talent, as 86% consider a good pension to be the most important factor when choosing a new employer. Of those employees who already receive enhanced pension pots, it was their third most-valued reward.

Protection For Loved Ones Is A Priority 🔒

Protection products such as Group Life Insurance or Group Critical Illness Cover provide peace of mind for employees and their families, and 22% said they want their employer to offer this protection.

Cost can be a major barrier to employees getting their own personal policies, so by providing cover through your company, you’re demonstrating commitment to their care and financial wellbeing.

Why Bother Optimising Your Employee Benefits?

Investing in employee benefits is more than just a perk; it’s a strategic move for business success. However, the latest data shows a significant disconnect between what employees want and what they receive. By reviewing your benefits and aligning them with the needs of your employees, you can:

• Attract and keep your talent
  A great benefits package is a big draw for job seekers and helps keep your current employees happy. In fact, 41% of employees said that benefits are the top priority when choosing a potential new employer. Plus, employees who appreciate their benefits are less likely to leave for other opportunities.
• Boost morale and productivity
  When you help your employees save money and enjoy special perks, they’ll be happier and more engaged at work. This leads to higher morale, loyalty, and productivity. 27% said their benefits package made them happiest in their current role.
• Enhance company culture
  Offering a variety of benefits can boost overall morale and create a positive workplace environment. This helps build a more united and collaborative team where everyone feels valued and motivated to work together.

By addressing the disconnect between what employees want and what they receive, employers can boost satisfaction, retain top talent, and reduce turnover.

A comprehensive benefits package demonstrates your commitment to your team’s well-being, leading to higher productivity and a more motivated workforce.

Nick Nelms
Senior Consultant, Employee Benefits

How To Create A Benefits Package That Employees Actually Want

Employee benefits are essential for supporting your team’s physical, mental, and financial health, but they need to align with the genuine needs of your employees. Here’s how you can do it:

Ask Them!

The most effective way to find out what your employees want is to ask them directly. Try sending a company-wide survey, or organising group sessions with your People team. You’ll get candid, real-time feedback on your current offering, and what you can do to improve satisfaction.

Benchmark Your Current Benefits

If you want to attract and retain top talent, your benefits need to be competitive. Benefits benchmarking might feel overwhelming, but it’s the best way to assess what’s going on around you, and spot opportunities to beat your competitors. For an easy start, check what benefits are being mentioned on job boards, websites such as Glassdoor, and even more candid discussion forums such as Reddit.

You can also work with our Drewberry experts, who’ll create a bespoke benchmarking report just for you. Call us on 02074425880 or email help@drewberry.co.uk to get started.

Communicate

There’s no use investing in benefits if you don’t tell anyone about them. Over 50% of employees say they don’t understand their benefits, so even the best perks don’t matter if employees don’t know about them or how to use them.

Telling employees about their benefits just once isn’t enough, either. Regular communication is the best way to get your team engaged.

You need a good plan for when, where, and how you’ll share information about benefits, which can feel overwhelming. That’s why we’ve created a guide to help you communicate employee benefits effectively.

Check Your Spend Is In The Right Place

Check the engagement rates of your benefits to see what employees are making most use of. As referenced above, 60% of employees would actually take bigger pension contributions over other benefits. So if you’re spending money on ping pong tables and office bars, it might be worth thinking about whether your employees would prefer more meaningful rewards.

Create A Wishlist-Worthy Benefits Package With Drewberry

Setting up and maintaining a competitive employee benefits package requires a decent bit of admin, which quickly becomes time consuming. We live and breathe employee benefits, doing this day in-day out for businesses just like yours. We look at the big picture, getting to know your unique workforce and benchmarking your offering against competitors.

Best of all? We have access to the most competitive rates on the market for core benefits, such as Group Life Insurance, Group Health Insurance, and Group Critical Illness Cover. Give us a call on 02074425880 or email help@drewberry.co.uk.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
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• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.