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Employees are slowly becoming unsatisfied with the benefits that employers are offering, but is it because of the legitimate benefits or a byproduct of a communication breakdown?
The Employee Insights Report 2024, compiled by Deloitte Australia and commissioned by Origin 360 EV, which surveyed over 1,500 employees and 15 HR representatives from a range of industries, has elaborated on the implications that a lack of communication relating to employee benefits can have on the workforce.
The report highlighted that employees who are unsatisfied with the benefits provided by their employer are likely to be unaware of the contents of such benefits or, frankly, not understand them at all. Close to half (49 per cent) of respondents described the communication of benefits as poor.
The study underscores the challenge that varying employers are having when it comes to communicating and explaining their benefits to employees during both the onboarding process and while workers are on the job. At the same time, it’s clear that employees who do not understand or know the benefits available to them tend to be dissatisfied with the offered benefits.
“We don’t do a good job of communicating benefits to our people after they first join,” said an HR professional within the report. “Simplicity is key. If our employees can’t access or understand the offering, it is pointless.”
It’s not a secret that employees’ benefit of choice would be a remuneration-based item; however, there is minimal alignment between their priority and the benefits that employers are willing to offer.
In fact, instead of focusing on remuneration, employers are directing their employee benefits towards career development (87 per cent) and work/life balance (87 per cent), with remuneration and benefits way down at the fifth ranking for employers (53 per cent).
Although that alignment is somewhat non-existent, it can be a massive factor in relation to attraction and retention, with close to 80 per cent of respondents stating they feel valued by their employer if they offer a range of benefits that align with their values.
Origin’s general manager of e-mobility, Chau Le, said: “Understanding how employee benefits, remuneration and values alignment impact the ability to attract and retain talent is incredibly important for businesses.”
To fully harness the full potential of employee benefits, organisations should consider implementing an effective benefits communication strategy that ensures benefits are clear and understood. If such a strategy is in place, then it reduces that “up to interpretation”, which can often leave employees extremely disgruntled when their expectations aren’t met.
RELATED TERMS
Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
