Tailored benefit packages
Becky Frith, October 09, 2015
Flexible benefits/cafeteria benefits has been in the US for over 25 years; it is a given there because of high employee satisfaction. So why is this a 'question' in the UK, 25 years later? Legal ...
Read More Frank Douglas
October 09, 2015 12:36
Nearly three-quarters of workers would like to be able to adapt their benefits to suit their needs
Would you consider offering your workers a ‘pot’ of money, then letting them choose their employee benefits with it from a menu of options?
Seven out of 10 (71%) employees would like to design their own tailored benefits package, according to research from Davidson Asset Management.
The report, Employee Benefits: 2035, found that 82% of workers want their benefits package to change as their circumstances do, jumping to 90% for people with salaries more than £35,000.
Russell Davidson, CEO of Davidson Asset Management, said that some employers are worried that providing this choice could impact their business planning. “Some employers are concerned that flexibility might cause quite a bit of disruption,” he told HR magazine. “For example, employees may choose to take holiday they weren’t scheduled to. ”
When asked to create their own benefits packages the most popular options were a workplace pension, followed by medical insurance and life insurance.
“It’s two areas the state is withdrawing funding from, so the concern is quite obvious,” Davidson explained. “People are quite happy with their employer stepping in and providing those benefits.”
There was also a marked difference between what different generations wanted from their benefits package. More than two-fifths (42%) of millennials would value financial advice, but only 17% of those aged 30 or over would value this perk. Conversely, 45% of those aged 30 and over would like to see increased pension contributions, but this was only of interest to 22% of millennials.
“Knowledge is power,” Davidson said. “The survey shows clearly that through positive communications for employees, staff can be enabled to make smarter decisions for themselves and their families.”