A quick summary:
- Your employee benefits don't match up with the modern workplace
- Employee wellbeing is nowhere to be seen
- Engagement is very obviously low
- Employees are jumping ship
- Your benefits package deserves better analysis
The workplace as we know it today demands better employee benefits. The kind that are three things: people-centric, meaningful, and impactful. Today, we’re looking at what makes for an outdated employee benefits package, and what leaders must do next.
As the UK navigates economic uncertainty, fringe benefits have emerged as a likely saviour for employees and employers alike. Yet, so many companies haven’t realised the positive difference their benefits scheme can make. Instead, employers rummage for cash in a not-so-bottomless pit of money to offer pay rises – failing to leverage their benefits as a better alternative.
Not sure if your workplace is plagued with outdated benefits? Take a look at the points below and assess your offering of perks and initiatives.
Reasons your workplace benefits are outdated
Below, we've explored a number of reasons why your benefits package could be outdated. From not following current trends, to neglecting employee wellbeing perks, we've left nothing out in our list.
Your employee benefits aren’t moving with the times
One of the most important findings you’ll make is that your employee benefits just don’t match up with the times. What’s important to people currently isn’t reflected in your perks. For instance, in a world that has taken highly to remote work, things like cycle-to-work schemes, free commute costs and office snacks just aren’t effective – of course, this depends on how remote your team is.
The needs of your employees change all the time. Flexible working is the new normal, and it has been a driving force behind the Great Resignation. Now isn’t the time for employers to sit back and wonder why their benefits scheme isn’t appealing, but find out why and find out quickly.
Because if there’s one thing for certain in the post-pandemic world, employees aren’t willing to sit back in a job that doesn’t support their health and wellbeing and offer attractive perks. Gone are the days of throwing money left, right and centre for talent, companies need to invest in people in more meaningful ways.
Employee wellbeing isn’t included in your employee benefits
Speaking of the pandemic, it’s been no easy journey for everyone. From investors, leaders and employees, COVID-19 has taken its toll. 2020 was a challenging year for many employers, as they scrambled to offer better wellbeing initiatives like mental health support.
And in 2022, this demand remains high. Things like better work-life balance are much higher on the priority list for employees. In a poll reported by PeopleManagement 86% of 500 HR decision-makers believed their staff required more health and wellbeing support. To put it in simpler terms, employee wellbeing is here to stay.
Things like high-street discounts and free coffee vouchers just aren’t doing it for employees anymore. Instead, mental health and healthier lifestyle choices are much preferred. This is especially true considering millennials and Gen Z workers are rapidly becoming the leading generation in the workplace.
And if there’s one thing we know about millennials and Gen Z individuals, it is their preference for healthier lifestyles and things like fitness. In one article by ITIJ, a survey of 2,000 Gen Z workers found that 75% want better financial wellbeing support, while more than 70% also want their employer to support their mental and physical health.
Similar read: Receiving employee benefits advice from your team
Engagement is extremely low
Engagement in the workplace is the ingredient of a successful team. Employees who aren’t engaged with their projects, coworkers or their employee benefits are a big red flag. It’s important to ensure your employee benefits aren’t going underutilised.
Check with your HR team on how often your team is using the employee benefits available to them. Believe it or not, some 42% of decision-makers believe their employees don’t know or understand their benefits. Which, of course, presents a problem in itself. This miscommunication and misunderstanding could be the missing piece to the engagement puzzle.
If this isn’t the problem, then it’s time to speak directly with employees. Find out why they aren’t making the most of the employee benefits scheme. What are their likes and dislikes? Low engagement is a serious issue, and it can spread like wildfire through everything from collaboration, job satisfaction, creativity and more.
Recognise that engagement in the workplace can vastly improve your business, from staff turnover, HR issues, employee productivity and more – we recommend you with your employee benefits scheme, as this can influence engagement tremendously.
Employees are leaving for greener pastures
As we’ve touched on above, the Great Resignation is swallowing up great companies, causing them to lose their best talent. Why? Well, there are a number of reasons, and better workplace incentives are very high up there.
It’s true that some employees leave simply because they want something new. Their experience with your company hasn’t been tarnished by poor employee experience, toxic workplace culture or even awful benefits, they just need a new challenge.
However, with the rise of the Great Resignation, workplace benefits are becoming more and more of a deciding factor. If your HR team has seen an increase in staff turnover, it could be time to review your employee benefits. This may not have been so much the case just a couple of years ago, but the post-pandemic era has turned the working world upside down.
If you’re concerned about your employee benefits, consider exit interviews. They’re your company’s chance to dig into why employees leave. Remember to focus some of your questions on the employee experience, engagement and the role of perks and incentives.
Maybe it isn’t outdated, there’s just a lack of insight
This bonus point is to highlight the importance of employee surveys and questionnaires. Quizzing your team can help in two ways. Firstly, you must pull data from the utilisation of existing employee benefits. That way, you’ll get an idea as to whether they are outdated and unappealing. Secondly, digging into the thoughts and feelings of your employees will give you better insight into new benefits to offer.
Surveys and questionnaires often go unconsidered by employers. Either because they feel they are doing everything right already, or because they don’t see the power in employee insight and data.
Whatever route you take, let’s hope that your team soon has access to benefits that really make an impact on your team and business.