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16 statistics shaping the future of employee benefits

By December 2, 2019 No Comments

As an HR professional you are constantly planning for the future. Building and evolving an employee benefits package that is fit for a multi-generational, diverse workforce with ever-changing expectations and fleet-footedness is a major challenge. You are not alone.

Despite best intentions, research by Gallagher tells us that just 22% of businesses offer some form of flexible / voluntary benefits. Companies say that negotiations with providers and choosing a delivery method are two of the major obstacles. But, employee benefits are no longer a nice-to-have. They have become a strategic imperative to recruit and retain the best talent, fend off the competition and create a healthier happy workforce that wants to be the best they can be. 

With 2020 fast approaching it’s a good time to take a look at some of the statistics that give us an insight into where things are at and the challenges and opportunities ahead.

Strategic challenges

1. 71% of employers are struggling with the rising costs of benefits (Gallagher

2. 67% of UK businesses are finding it difficult to create a standardised, flexible benefits package that appeals to an increasingly diverse workforce (Gallagher)

3. 41% of UK workers feel satisfied with their benefits (CIPD)

High demand benefits

4. 44% of employees say that annual leave (22 – 35 days) is the most important benefit to them (Aviva)

5. 70% of employees say that flexible working is very important to their overall job satisfaction (Know Your Money)

6. A majority of employees (71%) plan to work beyond 65 and 32% see flexible working initiatives as the best way to support and attract older workers (Canada Life Group)

7. 90% of Millennials regard policies that encourage a good work / life balance as being one of the best things about their job (Robert Walters)

8. 50% of the UK workforce will be working remotely next year (ONS

9. 30% of requests for flexible working are still being declined (TUC)

10. At just 6%, unlimited leave is still uncommon (SHRM)

Recruitment and retention

11. 60% of people say that benefits and perks are one of their top considerations when deciding on a job (Glassdoor)

12. 78% of Britons would be more likely to apply for a job if it mentioned the benefits on offer. However, just 47% of adverts include benefits information (PageGroup)

13. 41% of employees say that work / life balance is a key reason why they joined their present employer (Aviva)

14. 77% of smaller businesses are struggling to recruit suitable, qualified staff and 64% are finding it difficult to keep them (Moorepay)

15. 88% of employers experienced skills shortages in the past year (Hays)

Automation and AI

16. 46% of HR professionals believe that AI and automation will be advanced enough to impact workforce planning within the next 2 to 5 years (Harvey Nash)

What does the future hold for your organisation? If you’re looking to introduce employee benefits, or update your plan, let’s talk to see how we can help.