May 31, 2012 | Post by: Darren Comments Off on Workplace employee benefits key factor in retaining staff

Workplace employee benefits key factor in retaining staff

More than a third of UK employees (36%) view workplace employee benefits as a key factor in their remaining with an organisation, research reveals. Mercer’s What’s Working Around The World report found that 30% of UK employees joining a new organisation were initially drawn in by the benefits package on offer.

The same percentage also showed a greater appetite for flexible employee benefits, saying they were willing not only to reduce the value of some benefits while increasing the value of others but also to pay personally for an improved benefits package.

The consultancy surveyed nearly 30,000 employees in 17 countries over the last 18 months to establish current levels of employee engagement and understand ‘how workers feel about the changing employment value proposition’.

While pay remains top priority for UK employees, pensions and retirement are ranked fourth most important value proposition with only one in three workers saying their employer does enough to help them prepare financially for retirement.

And Mercer’s study revealed worryingly low levels of employee engagement with more than a third of UK respondents saying they were giving serious consideration to leaving their current employer. This number rose to four out of ten in the under 35 age group.

“I am not surprised by the findings of Mercer’s research which shows that in the UK, the benefits packages offered are one of the key reasons for staff joining and then staying with their employer.

Benefits packages play an important part in any employer’s make up and offering a range of employee benefits makes the employer attractive to new recruits and enhances the remuneration package of existing staff, which is particularly important at a time when many are paying more tax and not receiving a salary increase.

As the economic conditions remain difficult, we are seeing significant changes in the composition of benefits packages. Whereas employees previously wanted lavish, extravagant rewards and benefits they are now, in light of ongoing pay freezes and cuts, more appreciative of schemes that help them with everyday expenses whether it’s offering retail savings or assistance with childcare costs.”

Kuljit Kaur
Head of Business Development
The Voucher Shop

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