Is HR providing all the wrong benefits?

Is HR providing all the wrong benefits?

A global survey by Benefex suggests HR and reward professionals in the UK are getting it wrong on benefits provision. 13% of the UK staff surveyed believed that benefits closely aligned with their actual needs. 96% of HR and rewards said they had seen a change in employee attitudes and behaviours over the past year.

Only 23% of UK employees said their experience described their experience of benefits as ‘excellent’, compared with 60% in the US and 52% in India. Meanwhile, benefits continue to be seen as an important part of the employment deal and relationship. 55% of employees argued that benefits that were relevant to them would have a greater impact on their experience of work the anything else.

The cost-of-living effect

Worries about finances appear to be at the root of the shift in outlook. Benefits supporting financial wellbeing are now found to be the most valued: 65% of employee respondents, compared with 53% in 2022. People pointed in particular for the need for: life insurance, health screening, critical illness insurance, dental insurance, pension, private medical insurance, childcare vouchers and income protection.

The survey also found that 83% of HR and reward professionals recognise the need for better insight and analytics, tracking spend and take-up of particular benefits — but less than half use data to assess the impact of benefits on employee wellbeing.

The heart of benefits

EAPA UK chair, Karl Bennett said: “Specific needs around benefits will always keep on changing. During the Covid-19 pandemic, health and wellbeing was the urgent need. And now with the harsh impact on household finances from inflation and rising interest rates, the trend has swung towards any benefits that mean extra financial help in whatever form it comes.

“At the same time, HR and management need to keep in mind what’s working for their people. Any one financial benefit isn’t going to provide a solution either financial wellbeing or the bigger picture of related worries around health and relationships or dealing with debt. This why EAPs will always be the heart of any benefits offering.

“What’s needed is more targeted and pro-active communications that makes sure staff know the EAP isn’t just there for a crisis, but is a talking and advice service that is also important for helping to deal with concerns and issues about financial problems and their ripple of effects into people’s lives at an early stage.”