COMP News – A report by MetLife UK shows that involved 1,200 employees and their employers found that employees would prefer individualized benefits over more pay in most cases.

More specifically:

• 50% of employees would rather have tailored benefits even if it meant a reduction in pay
• 74% of employees said they would work harder for an employer who provided benefits for individual needs

Just under four in 10 (39 per cent) workers also reported that if they intended to leave their current role within the next 12 months, having an employer that demonstrated more care for their mental wellbeing would encourage them to stay.

This means employers are going to have to start thinking differently about their employee benefits and how they compensate employees for their performance. Workers are increasingly looking at employers to provide meaningful mental health benefits rather than just paying them more money for well-performed work. The good news is that some employers are beginning to think about that in their strategy.

Meanwhile, the research also found that two-thirds (67 per cent) of employers had begun reviewing their employee benefits package, with a similar proportion (63 per cent) reporting that they had seen an increase in employee queries about benefits since the start of the pandemic.

One of the major protections employees are seeking from employees are benefits around protecting their income.

For both employers and employees, pensions were ranked as the most important benefit for the coming year, rated at 7.48 and 7.78 out of 10 respectively (with 10 being of highest importance).

 

Income protection was rated 7.15 and 7.27 out of 10 for employers and employees respectively, while critical illness insurance scored 6.94 and 6.95 out of 10 respectively.

This shows a growing trend that traditional soft benefits such as gym memberships and other benefits are going to be as much of a driving force in employees’ minds moving forward. Employers will have to adapt their strategy to understand their employees’ needs.

To read more about the survey on employees’ compensation and personalized benefits, click here.

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