Benefits – Study shows: 50% of employees are dissatisfied with the range of benefits at their workplace
Benefits are critical to employee retention! A new study at the Aalto University School of Business in Finland, conducted in early 2023, shows that four out of five employees are willing to change jobs if they are offered better benefits. The study involved nearly 1200 employees and 280 people in leadership positions from both Finland and Sweden. The results reveal that employers and employees do not always have the same opinion about the company’s benefit program. Now let’s dive deeper into some of the exciting results from the study!
According to the study, four out of five would change jobs to get better benefits. Clearly a result that shakes up employers and shows that benefits play a crucial role in retaining staff and creating a competitive work environment. It is important that employers take this seriously and adapt their benefit programs to meet the individual needs and desires of their employees.
Dissatisfaction with the range of benefits is clear
Fewer than 50% of the employees in the study are satisfied with the current range of benefits.
More than 50% of employers mistakenly believe that their employees are satisfied with the company’s benefit offering.
How did it get like this? One of the reasons why employees are dissatisfied with the range of benefits is the lack of adaptation. Many companies take the easy way out and offer standardized benefits that don’t take into account the unique needs and wants of each individual employee. For example, an employee may be more interested in flexible working hours than a free gym card, but the company only offers the latter. In addition, the benefits may be outdated and no longer relevant to today’s workforce. The study shows that over half of the employees in Sweden would appreciate the opportunity to work from home. If your workplace does not offer the flexibility to work from home sometimes, many may apply to other employers.
Offering flexibility, modern benefits and the ability to work from home can be critical factors in attracting and retaining talent in today’s labor market. Employers should therefore review their existing benefits and be open to changing and upgrading them in order to compete and promote a satisfied and loyal workforce.
Communication is key – do you know your benefits?
Over 70% of employers believe that they communicate the benefits well to their employees. But just barely 60% of the employees agree!
A common reason why employees feel dissatisfied with the benefits is not always the benefits themselves, but a lack of sufficient communication about which benefits are available, how they can be used and which rules apply. Many employees feel confused about the possibilities and limitations of the benefits offered, which leads to them not being fully utilized.
As an employer or HR staff, it is important to regularly and openly communicate about the benefits. This can be done through information meetings, an easily accessible page on the intranet or by providing a benefit portal where all relevant information is collected. Offering good benefits to employees without clearly communicating how they can be used is a waste of the company’s resources. You’ve heard it before – but communication really is the key to success.
Focus on mental and physical health is crucial
The study points out that there are significant differences of opinion when it comes to employees’ physical and mental well-being. While four out of five employers believe they provide sufficient support and resources for employees’ physical health, less than 50% of employees believe they actually receive such support from their employers. The situation is even more worrying when it comes to mental health, where less than 40% of employees believe they receive support from their employer. These figures clearly signal that it is time for many employers to make a thorough evaluation.
It is more important than ever to prioritize employees’ physical and mental health. As an employer, it is our responsibility to ensure that we offer adequate support and resources to promote the well-being of our employees. By investing in health promotion programs, offering access to training, supporting a balanced workload and encouraging a positive work environment, we can create a culture where employees feel seen and cared for.
Source: Epassi – The Great Employee Benefits Study 2023
Here we have collected the most common questions we usually get at Benefits.