Businesses must adapt to the changing needs of employees if they are to avoid losing key staff to rivals, according to workplace consultancy Croner.
The organisation's survey into employee benefits found that employees were not using benefits offered by their employer in 53% of cases because the perks on offer did not conform to their individual lifestyle.
Only two out of the employers' top five benefits made it into the employees' list. Bosses preferred company pensions and death-in-service benefits as their top two (quoted by 93% and 72% respectively), while employees were more impressed by private medical insurance (44%) and flexible working (34%).
"Although an important factor to all employees, we are increasingly seeing that workers are not solely motivated by money," said Croner Reward's Andrew Walker.
"With modern lifestyles becoming ever-more demanding, employees are looking to employers to help them achieve that essential work-life balance, whether it is by allowing them to work more flexibly or through something like free healthcare.
"Businesses can help employees achieve this balance by regularly reviewing their schemes and bringing them up to date with the requirements of their employees."
Croner offers small business owners the following advice when reviewing their benefits package:
Consider the needs of both the business and employees. Achieving a balance between the two will help maintain a stable working relationship between employer and employee
Review the current company benefits scheme. Decide what needs to be changed and what can remain the same
- Involve staff in agreeing working patterns in line with the ebb and flow of business. Show workers that their needs are being considered by conducting an internal survey. This will give you, as an employer, an insight into exactly what your workforce require, making the review process a little easier
- Achieve a benefits balance. Try to achieve a balance between offering the more traditional benefits such as a pension scheme and the ‘softer' benefits such as flexitime and duvet days
- Have clear policies on benefits and fully brief line managers. Explain the details of the benefits to line managers and ensure that they implement the organisation's policies fairly
- Improve recruitment processes. When recruiting new talent, ensure that recruiters emphasise the benefits opportunities, setting them out in a clear manner so that prospective candidates are fully aware of what the company can offer them
- Measure results. Establish benchmarks for recruitment, retention and absence, and measure these regularly to establish the effect the new scheme has had on the workforce
- Count the cost. Estimate the cost of implementing new benefits as it is important to recover the investment
- Review on a regular basis how the benefits operate to ensure that operations are not compromised, all staff have equal opportunities, and that expected business improvements have materialised
- Allow for change. In your policies, ensure that there are provisions for future change to meet developing business needs
