In today’s competitive job market, attracting and retaining top talent requires more than just a standard compensation package – our research has revealed that nearly half of employees would switch roles for better benefits[1]. Tight budgets, rising costs, and diverse needs are compounding the issue and increasing the pressure on businesses.
Flexible benefits provide companies with an opportunity to better engage and retain employees while minimising wasted spend. They can be cost effective to implement, and help companies provide a broader provision of support.
What are flexible benefits?
Simply, flexible benefits are about giving employees more than a one-size-fits-all package, allowing them to tailor their benefits to their unique needs and preferences. Using a benefits technology platform, employees can opt-in from an array of pre-arranged benefit options – either purchasing directly from the provider or via the platform itself.
But why are flexible benefits vital for a modern workplace? Our research found that 68% of employees would like to have more flexibility to pick and choose their benefits and 23% are unsatisfied with their existing benefits provision[1].
Offering this flexibility helps to cater to varying demographics and individual lifestyle choices – ultimately driving higher levels of employee engagement and satisfaction, and supporting your return-on-investment in employee benefits.
The benefits of flexible benefits
Investing in flexible benefits can have a multifaced impact on your business:
- Employee Engagement
Flexible benefits facilitate access to perks that best align with an employee’s personal needs and preferences. When employees can choose benefits that support their lifestyle, it demonstrates the company’s commitment to their wellbeing, and helps employees feel valued by their organisation.
However, our research highlights an issue with engagement – employees can’t engage with benefits they aren’t aware of. Effective engagement stems from regular, clear communication with employees
Leveraging technology can streamline this process, by providing cost-effective solutions for communications – especially if your benefits technology platform has built-in communication templates included (like glo). As employees engage with benefits tailored to their needs, companies could see tangible outcomes such as reduced absenteeism and increased productivity. For instance, providing childcare or eldercare support could result in fewer absence days related to caregiving.
2. Cost Savings
While there may be initial costs associated with implementing a flexible benefits program, the long-term savings can be significant. A good benefits platform will help companies optimise their benefits spending, maximise their return-on-investment and reduce the administrative burden for HR teams.
By using flexible benefits to cater to the specific needs of your employees, the risk of wasted spend is also reduced. The data from your technology platform can help inform and optimise continued investment, highlighting underutilised benefits or areas of high need.
3. Attraction and Retention
Our latest Mind the Gap survey found that 49% of employees would move roles if offered better benefits and only 14% are very satisfied with their current benefits offering.[1] There is a clear demand for better benefits.
A good benefits package can differentiate your business and make you an employer of choice, showcasing commitment to the diverse needs of your employees. By providing personalised benefits options, businesses could attract top-tier talent and enhance retention – without the need to increase salaries – and save on recruitment and training costs.
What can companies do?
With demand for flexibility so high, companies cannot afford to ignore the evolving needs of their employees.
- Review your current benefits offering – does it feel aligned to the needs of your workforce and their demographic?
- Regularly gather employee feedback and align benefits options to needs
- Assess utilisation data to understand gaps or wasted spend
- Book a demo for glo to see how we can help
[1] Mind the Gap 2024
