Workplace Perks and Incentives Matter Greatly to Employees
In a recent study conducted by employee benefits technology provider Zest, it was found that the hospitality and leisure sector has a relatively low satisfaction rate of 54% when it comes to the value of their reward packages[1]. This is concerning, as given 58% of employees in this sector say that they would leave their current job if another company offered them better perks[2].
Across all industries, six in ten (58%) employees admit they don't use most of the benefits currently available to them[3]. This is partly due to half (47%) of employees feeling as though their benefits are irrelevant to their personal situation[3].
However, it's not all doom and gloom. The construction sector, for example, has a satisfaction rate of 57%, which is higher than the hospitality and leisure sector[3]. The financial services, business services, and IT sectors lead in satisfaction, with 76%, 75%, and 75% of employees, respectively, believing they receive good value for money from their reward packages[3].
The key factors contributing to high employee satisfaction with reward packages are competitive and fair compensation, comprehensive benefits, recognition and development, work-life balance, and personalization[1][2]. When these elements are well-balanced and reflect what employees genuinely value, satisfaction and retention improve significantly[2].
On the other hand, the healthcare and education sectors lag far behind, with less than half of employees feeling they receive good value. In the education sector, just 42% of employees believe their reward packages offer good value[3]. Four in ten (37%) education employees say that due to the benefits on offer being good enough, they want to leave the education sector[3].
Employee benefits can provide a cost-effective opportunity to attract and retain talent. However, only 45% of employees feel as though their employer listens to their needs and responds through the benefits they offer[3]. Regular feedback and customization are essential to closing these gaps and improving perceived value across all sectors[2].
References: [1] Society for Human Resource Management (SHRM) (2021) Employee Job Satisfaction and Engagement: A Global Workforce Study. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-engagement/global-job-satisfaction-and-engagement-study [2] Deloitte (2021) 2021 Global Human Capital Trends. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-about-deloitte-brochure.pdf [3] Zest (2021) The State of Employee Benefits: A Comprehensive Study. Retrieved from https://www.zest.co.uk/state-of-employee-benefits-report/
- In the financial services sector, where 76% of employees believe they receive good value for money from their reward packages, reinsurance and workplace-wellness initiatives may serve as valuable and cost-effective ways to attract and retain talent.
- Given that only 45% of employees feel as though their employer listens to their needs and responds through the benefits they offer, science, especially in the field of health-and-wellness, can play a crucial role in customizing reward packages and improving employee satisfaction and retention.
- As businesses across all industries grapple with retaining talent, understanding the key factors contributing to high employee satisfaction - including fair compensation, comprehensive benefits, recognition, work-life balance, and personalization - can lead to a significant improvement in satisfaction rates, similar to those observed in the business services (75%) and IT (75%) sectors.
