The Engage to Perform study which examines the key priorities for benefits professionals in 2013 found the combination of the challenging economy and a pay squeeze have resulted in an increase in benefits take-up for a third (33%) of organisations.
Although 69% said their role in the reward mix was more important, only 26% said managers and leaders understood or valued their role as a tool to support business performance.
The research also found that while auto-enrolment is a strategic priority for the majority of those questioned, only a minority (33%) said it was an opportunity to increase awareness of wider benefits.
Nearly half (42%) of those questioned said they would review benefits strategy this year.
Ian Hodson, rewards and benefits manager at University of Lincoln, told HR magazine that a rewards package can lead to a relationship that can demonstrate a sense of care that will lead to improved commitment, motivation and productivity.
He said: "The widening of the reward and benefits package is important to all stages of the employee lifecycle whether through the attraction, engagement or retention stages.
"More recently aspects of the reward package have also formed the opportunity to strengthen a relationship with individuals that lends itself to an enhanced employee and employer interaction whether that be through supporting their wellbeing, family, personal development or social activities.
"Line Managers as ever form the conduit in the business for being aware of the mechanisms in place and also for the selection and marketing of the package in the right places to motivate on an individual or a team basis. Our responsibility in HR is to ensure that we brand the reward package clearly for line managers and create signposting to ensure the flow of information through to the employees."
Hodson added: "Over the next 12 months I believe we will see the benefits package being used proactively to address current business issues in a proactive way such as stress and long term illness along with a move towards identifying personal and professional development support as part of the employee benefits available."
Andy Philpott, sales and marketing director at Edenred, said: "If there is one clear trend that comes through from our research it is that 2013 is a critical year for the way organisations approach benefits."
He added: "With no improvement in benefits budgets in sight for around three quarters of those we surveyed, organisations are looking hard at what they can do to make their benefits proposition deliver more for their employees."
