Employee engagement with benefits is rapidly declining. Our 2024 Mind the Gap survey discovered a striking difference in employee engagement year on year; in 2023 disengagement was 28%, a year later in 2024 it had risen to 37%[1]. The issue is even more pronounced for SMEs, where 58% of employees don’t access any information about their benefits. But what is causing this? And what can companies do about it?
It’s not enough to simply provide benefits, companies must actively engage employees with them to ensure they are utilised and considered valuable. Low engagement isn’t just an individual, employee problem – it’s a red flag of wasted spend and missed preventative opportunities.
So how can companies improve employee engagement with benefits?
Tailor Benefits to Employee Needs
Companies need to ensure that their benefits offering aligns with the needs and preferences of their employees. More ‘traditional’ benefit packages that include health insurance, discount portals, or gym access remain important, but they may not always resonate with the diverse needs of today’s workforce.
Companies should consider gathering feedback from employees to understand what they value most in a benefits package. If your business uses benefits technology, this can be used to explore utilisation data and other key indicators into what employees engage with most.
Some employees may prioritise mental health resources, while others may be more interested in financial wellbeing initiatives or caregiving support. It depends on the demographic and life stages of your employee population. Tailoring the benefits offering to employee preferences can enable companies to make their benefits feel more personal, which can lead to an increase in engagement.
Take a multi-channel approach
Engagement begins with communication and often this is the biggest barrier for employees. This is a layered issue – often employees aren’t fully aware of the range of benefits available but additionally may not understand the information available to them.
Our research showed over a third of employees do not find information about their employee benefits accessible[1] which highlights a significant need for consistent and targeted communication.
Using a multi-channel approach to communications can help to effectively engage employees, funnelling them to one centralised access point, such as a benefits portal. Popular formats include emails, booklets, posters, webinars and leaflets but companies should always keep their workforce in mind to provide the best possible communications. For example, if your employees spend a lot of time on the road you could consider dashboard stickers or wallet inserts, if your workforce don’t have an office base you might consider posting information directly to their home address. There is no one-size fits all solution to improving engagement– clear and considered communication is key.
Additionally, companies now must work harder than ever to cut through the noise. Employees are exposed to hundreds of messages a day, from promotional advertisements to work emails and banking notifications. There’s a lot of competition when it comes to capturing their attention. Employers should focus on repeated touchpoints and long-term campaigns rather than a once and done approach before a benefits window.
Offer Flexibility and Choice
Employees prefer flexibility when it comes to benefits selection – which could lead to better engagement. Our research found that 68% of employees would like more flexibility to pick and choose their employee benefits[1].
Flexible benefits packages that allow employees to choose the perks that best suit their individual circumstances, can reduce wasted spend on rolling out company-wide benefits. Offering a wide range of benefits can demonstrate to employees that the company values their wellbeing and individuality.
An easy way to boost engagement is to provide as much choice as possible through voluntary benefits. These can be provided at little to no cost to the employer, but the breadth of options will meet diverse needs.
Promote Wellbeing and Mental Health Support
Wellbeing initiatives are becoming an increasingly important provision in the workplace, and it’s crucial that employees feel comfortable engaging with support when they need it. A healthy and supported workforce can not only be more productive but also more engaged.
However, employee wellbeing goes beyond just offering benefits – it’s about ensuring that employees are fully aware of and feel empowered to access the resources available to them. Our research shows that companies should prioritise providing benefits related to mental, financial and physical health.
Often, companies are providing wellbeing support, but employees cannot engage with benefits they don’t know about or if the culture doesn’t facilitate engagement. People managers are often the first line of defence when it comes to signposting support; line manager training could help educate about the importance of good wellbeing and the provision available.
Regularly Review and Update Benefits Packages
Creating an impactful benefits package will never be a one-time task, benefits that were relevant a few years ago may no longer meet the needs of your current workforce. Additionally, as societal and economic conditions evolve, so do the needs of employees – regularly reviewing and updating benefits is key to providing a relevant and valuable offering.
Companies can proactively assess the success of their benefits package through employee feedback, utilisation rates and other key data which can help illustrate how engaged your workforce is with the benefits they currently provide. Employee feedback can also allow companies to get a more accurate understanding of what benefits to implement and which provisions are resulting in wasted spend, harmonising their offering and overall value to employees.
Create a Culture of Engagement and Support
Ultimately, employee engagement with benefits is not just about the perks themselves but about creating a workplace culture that values employee wellbeing. Leaders and those in senior positions should proactively foster an environment where employees feel comfortable asking questions, seeking guidance, and using their benefits without fear of judgment or retribution.
Employers can appoint ‘Benefits Champions’ – employees who are knowledgeable in the company’s offerings and can serve as trusted resources for their colleagues, providing valuable answers to questions and sharing insights. Additionally, employee testimonials can be a powerful tool for engagement; showcasing positive stories and experiences with benefits can motivate others to take advantage of what is available to them.
When employees feel supported and valued by their employer, they are more likely to take an active role in engaging with the benefits that are offered.
[1] Mind the Gap 2024