An overwhelming majority of UK employers are planning to either maintain or increase their spending on employee benefits in the next two years.
According to a report published by the Chartered Institute of Personnel and Development (CIPD) and investment consultancy LCP, 81 percent of employers plan to maintain their current spending on employee benefits, while 16 percent intend to increase spending.
The new research explores issues of reward management in UK workplaces. Drawing on insights from a group of senior reward professionals, the key focus of the research was on employee benefits, including which benefits are provided to whom, how they are being communicated and evaluated, and the provision of employee financial wellbeing.
29 percent of employers surveyed said they were likely to increase funding in health and wellbeing programmes such as occupational sick pay, employee assistance programmes and flu jabs, while 25 percent intend to increasing spending on financial benefits such as pension schemes and loans.
Benefits play an integral role in helping organisations to succeed, with 66 percent of employees saying their main purpose was to attract, recruit and retain staff to satisfy current business needs.
Despite this, 74 percent of employers do not currently conduct a review of their benefit expenditure, meaning they are likely overlooking the opportunity to ascertain how effective their employee benefits are.
The report also reveals 16 percent of employers do not always communicate what benefits are on offer to their employees.
According to CIPD Senior Reward and Performance Advisor, Charles Cotton, employees need to more readily understand the direct and indirect costs incurred by benefits, and consider these alongside the expected payback for the organisation.
“Ultimately, they need to ask: which benefits will help create and sustain the working environment needed for employee engagement and performance, and help the business achieve its goals?”
Cotton said that despite recent economic and political uncertainty, employers were 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 relate to people development and well-being. Spending in these areas can help to improve employee, and ultimately, corporate performance.”