Rewards & BenefitsEmployee BenefitsWhy more businesses are increasingly investing more time on staff benefits

Why more businesses are increasingly investing more time on staff benefits

Reports have stated that more businesses are intending to invest more time and money into staff benefits, what impact could this have on a business?

CIPD released a report that revealed that 8 in 10 employers (81%) have plans to spend the same amount on staff benefits over the next two years. Additionally, 16% intend to increase their investments.

In this report, it also showcased the divide in the way employees offer their benefits, with 42% of companies offering employees a choice of what benefits they receive, so they are more tailored to their demographic in age. Although it is a positive a large number of companies are deciding to invest a great deal of time and money into staff benefits, it was reported that 3 in 4 employers don’t review the impact staff benefits have on individuals or the business, so it does seem that improvements can be made to making this personalised to be more attractive to different groups of people. 

There is no surprise that there is a large amount of attention to increase staff benefits, as a report by Deloitte, which discussed Millennials thoughts on the current UK workforce, as well as trends for young workers, in this report they found that  “43% of millennials envision leaving their jobs within two years; only 28% seek to stay beyond five years. The 15-point gap is up from seven points last year. Employed Gen Z respondents express even less loyalty, with 61% saying they would leave within two years if given the choice.”

They went on to find solutions for these preferences, saying “Attracting and retaining millennials and Gen Z respondents begin with financial rewards and workplace culture; it is enhanced when businesses and their senior management teams are diverse, and when the workplace offers higher degrees of flexibility. Those who are less than satisfied with their pay and workplace flexibility are increasingly attracted to the gig economy, especially in emerging markets.”

When delving deeper into what benefits companies are looking to focus on. Respondents to these surveys mentioned that they were most likely over the next two years to increase professional development, including training, and paid study leave. With 43% agreeing to this. 29% said they intend to invest in Health and Well-being, which would include covering sick pay and having employee assistance programmes. 25% said they would spend more time covering financial benefits such as pension schemes and debt advice.

Charles Cotton, senior reward and performance adviser at the CIPD, commented on these changes to employee engagement, saying “Despite the recent economic and political uncertainty, employers are committed to investing in their employees and their future. It’s encouraging to see the benefits that have been earmarked for further spend in the near future related to people development and well-being. Spending in these areas can help to improve employee, and ultimately, corporate performance.”

HiBob reinforced the importance of this through their own research, with a recent survey initiated by the people platform, found that companies that put the bottom line ahead of things like personal development, company culture and helping society are clashing with their millennial workforce. This leads to employees feeling disengaged, subsequently meaning that 62% of this young workforce end up leaving their jobs less than two years after joining a company.

Sharon Argov, VP Growth at HiBob commented on this shocking statistic “This highly engaging platform is working to support fast-growing companies, in recognising that millennials’ attitudes, values, and work-styles are changing the entire relationship between companies and their employees.”

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