Minority of employers say pensions best support benefit objectives
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Among organisations that have a benefits strategy, three-quarters find flexible working best supports their objectives, the CIPD has said, while pensions are seen as effective by 37%. About one in five UK employers have no set objectives for the employee benefits they offer.
The professional body for HR and people development’s ‘Reward survey: Focus on employee benefits’ report, supported by SME insurer Everywhen, found that the majority of employers (77%) link their benefits to at least one objective, most commonly to retain employees (44%) and support engagement (37%) but that as many as one in five (22%) are offering benefits without a defined objective.
Among employers that have objectives for their benefits package, 75% of employers with benefits objectives say flexi-working best supports these. Despite this clear verdict, just 40% of all employers surveyed offer flexible work, indicating that many firms have suboptimal benefits and workforce strategies.
Meanwhile, 37% say the pension offering best supports their objectives. The CIPD said where organisations find the benefits they offer are not contributing to success, they should ask themselves whether it is down to communication, or if other benefits are seen as more impactful.
Charles Cotton, senior reward and benefits adviser at the CIPD, said employers invest significant time, money and energy into employee benefits.
“So, it’s worrying that one in five don’t actually know what they want their benefits to achieve. That means a sizeable chunk of spend risks lacking clear direction or measurable impact,” he said. “Employers should be acting on employee feedback, or using data such as turnover and team performance, and tracking progress against defined success measures. Without this discipline, employers are fumbling in the dark when it comes to knowing if their benefits are truly delivering for both the business and its people.”
Iain Laws, chief executive health and benefits at Everywhen, added: “Organisations with a coherent wellbeing strategy consistently deliver more meaningful benefits, and that adds real value to both their employees and their company. A workforce that is well looked after is likely to be more engaged and more productive.”
The report lists the 16 most common benefit types. On this list, a workplace pension scheme where the minimum employer contribution is 6% came in seventh place, with 29% of employers offering it – just ahead of paid jury leave.
The survey found that employers with 250 or more people, as well as those that have an employee financial wellbeing strategy, are more likely to provide benefits around pensions, investments, savings and borrowing. Fifty-seven per cent of them match pension contributions, and 54% provide pension salary sacrifice.
The report notes that organisations with a financial wellbeing strategy are more likely to offer pension matching (34%) compared with those without one (13%). The CIPD previously found that money worries can negatively affect employees’ ability to perform at work.
The professional body for HR and people development’s ‘Reward survey: Focus on employee benefits’ report, supported by SME insurer Everywhen, found that the majority of employers (77%) link their benefits to at least one objective, most commonly to retain employees (44%) and support engagement (37%) but that as many as one in five (22%) are offering benefits without a defined objective.
Among employers that have objectives for their benefits package, 75% of employers with benefits objectives say flexi-working best supports these. Despite this clear verdict, just 40% of all employers surveyed offer flexible work, indicating that many firms have suboptimal benefits and workforce strategies.
Meanwhile, 37% say the pension offering best supports their objectives. The CIPD said where organisations find the benefits they offer are not contributing to success, they should ask themselves whether it is down to communication, or if other benefits are seen as more impactful.
Charles Cotton, senior reward and benefits adviser at the CIPD, said employers invest significant time, money and energy into employee benefits.
“So, it’s worrying that one in five don’t actually know what they want their benefits to achieve. That means a sizeable chunk of spend risks lacking clear direction or measurable impact,” he said. “Employers should be acting on employee feedback, or using data such as turnover and team performance, and tracking progress against defined success measures. Without this discipline, employers are fumbling in the dark when it comes to knowing if their benefits are truly delivering for both the business and its people.”
Iain Laws, chief executive health and benefits at Everywhen, added: “Organisations with a coherent wellbeing strategy consistently deliver more meaningful benefits, and that adds real value to both their employees and their company. A workforce that is well looked after is likely to be more engaged and more productive.”
The report lists the 16 most common benefit types. On this list, a workplace pension scheme where the minimum employer contribution is 6% came in seventh place, with 29% of employers offering it – just ahead of paid jury leave.
The survey found that employers with 250 or more people, as well as those that have an employee financial wellbeing strategy, are more likely to provide benefits around pensions, investments, savings and borrowing. Fifty-seven per cent of them match pension contributions, and 54% provide pension salary sacrifice.
The report notes that organisations with a financial wellbeing strategy are more likely to offer pension matching (34%) compared with those without one (13%). The CIPD previously found that money worries can negatively affect employees’ ability to perform at work.
