Firms fail to communicate financial benefits to staff

Gym membership prioritised over insurance

Employers are failing to communicate core financial benefits to their staff effectively, according to Unum.

Research carried out by Personnel Today magazine on behalf of the provider shows that excluding pensions, over a third of employers never communicate with their staff about core financial employee benefits, while a further quarter do so less than once a year.

Management at all levels are more likely to tell staff about ‘soft perks’, with 62% of firms telling staff about subsidised gym membership annually or multiple times a year. However, Unum argues that perks such as these are less valued by employees than financial and health benefits.

The survey also shows that more than half of employers are planning to review their benefits package this year.

Linda Smith, HR director at Unum, said that with pension auto-enrolment being introduced this autumn, firms reviewing their benefits offering need to ensure they are using their budget wisely.

She said: “Income protection, for example, makes sense for employees as a core benefit, since an individual is three times more likely to be ill for six months or more than to die during their working life, and employees need to be protected financially during that time.

“Most of us wouldn’t be able to survive for longer than three months on our savings, yet again the majority of us don’t protect ourselves against this. For employers, it makes clear business sense, helping with the management and costs of long-term absence, and getting employees back to work as soon as they are ready.”

comments powered by Disqus