Despite companies investing significantly in benefits, to attract and retain talent and encourage employee wellbeing, many employees don’t fully utilise what is available to them.
Research by GRiD revealed that 42% of employees don’t know about or understand all the workplace benefits they are offered. If employers want to see a higher uptake and improved employee satisfaction from their benefits packages, they must take a proactive approach. But how?
We’ve outlined some of the key strategies to help you increase employee engagement with your benefits.
Explain and communicate what’s on offer
One of the main reasons employees fail to use their benefits is that they simply aren’t aware of what is available. Employers often roll out comprehensive benefits programmes but fail to clearly communicate the details and advantages to their workforce.
Don’t just use one platform to communicate your benefits – take a multi-channel approach. Outline them in your employee welcome pack, have them stored on your intranet, in a shared folder or on a microsite, send regular emails about new and existing benefit offerings or why not have an annual benefits update meeting?
Actionable steps:
Simplify the benefits language: try to avoid jargon and complex terminology in your benefits documentation. Employees should be able to quickly grasp what is available and how it benefits them.
Create easy-to-access resources: use digital platforms or employee portals to host all benefits information in one place. Include FAQs, videos, and how-to-guides to explain your offerings in clear, concise terms.
Ongoing communication: you must remember, benefits awareness needs to be ongoing and not just during the onboarding period.
Use employee feedback to enhance the offering
To maximise the uptake of benefits, it’s important to make sure you’re offering what employees actually want and need. What worked a few years ago might not be relevant now.
When conducting our annual salary guides, in 2021, we saw higher demand for health-related benefits, which reflected the impact the pandemic had on workers. Last year, employees were feeling the initial impact of rising energy bills and inflation, which was reflected in their desire for more financial-led benefits.
Employers need to adapt their benefits package to reflect the evolving priorities of their workforce.
Actionable steps:
Survey employees: send out surveys to understand what benefits employees value most. You can also ask for suggestions on benefits that aren’t currently offered but would be appreciated.
Conduct focus groups: take a deeper dive into employee feedback by holding focus groups. These sessions allow employees to share their thoughts in more detail, providing the company with better insights into which benefits will have the most impact.
Monitor emerging trends: keep an eye on market trends and consider offering benefits that reflect the latest shifts in employee expectations. For example, wellbeing benefits are in demand, yet according to a study by Cigna Healthcare, 58% of HR leaders admit they are often underused.
Measure success and optimise
A key mistake employers make is failing to measure the success of their benefits programmes. Without data, it’s impossible to know which benefits are driving employee satisfaction and which ones are underutilised.
Regularly measuring the effectiveness of your benefits allows you to make adjustments that ensure continued relevance and value.
Actionable steps:
Track usage data: gather data on which benefits employees are using most and least. If certain benefits are underutilised, it may indicate a communication issue or that the offering doesn’t align with employee needs.
Review industry benchmarks: compare your company’s benefits and usage rates with industry standards – is what you’re offering better or on par with your competitors? This may help you identify any gaps and give you an understanding of where you stand in the market.
Don’t be afraid to customise and personalise benefits
No two employees are the same, and neither are their benefit needs. Offering customisable benefits allows you to tailor packages to their personal circumstances, making them more likely to engage with the programme and, in turn, remain loyal.
When it comes to talent acquisition, if prospective hires see that your company offers tailored benefits, it helps show that your organisation values and respects its employees.
Actionable steps:
Offer flexible benefit options: allow employees to pick and choose from a range of options based on their preferences. This can include a mix of health benefits, financial perks, and lifestyle offerings.
Provide tiered plans: employees at different stages of life have varying needs. Consider offering tiered benefit plans that cater to employees at different points in their career, from early career professionals to those approaching retirement.
Leverage a benefits platform: Use technology that allows employees to manage and customise their benefits easily. Platforms such as Workday and BambooHR – that let employees adjust their benefits on-demand – will increase both transparency and engagement.
Increasing employee engagement with benefits packages is not just about offering more benefits – it’s about offering the right benefits and making sure your message is heard.
Ultimately, a well-communicated and tailored benefits package helps to create a more satisfied, loyal, and productive workforce. You can find out more in our 'Ultimate guide to employee benefits', a free-to-download eBook that explores a range of popular and emerging employee benefits in the UK.
If you’re looking for new talent for your organisation, or are considering your next career move, get in touch with one of our specialist consultants today.
